Polkadot community proposes to establish a Bitcoin reserve: plans to use 500,000 DOT to convert to tBTC

[Mining] On June 13, news broke that members of the Polkadot community proposed establishing a Bitcoin strategic reserve for the treasury, planning to use 501,000 DOT, of which 500,000 will be gradually converted into decentralized non-custodial BTC assets tBTC, and 1,000 will be used for transaction fees. This proposal aims to enhance the long-term stability and risk resistance of the treasury through asset diversification. The specific execution method involves utilizing the Rolling DCA mechanism of the Hydration protocol to sell small amounts of DOT daily over the course of a year and convert them into tBTC, while also generating additional income for the treasury through lending functions. The transaction frequency will be once every 20 blocks, with a total annual trading volume of 500,000 DOT, and liquidity will be injected into the liquidity pool after accumulating 0.25 tBTC. Although the proposal is considered a reasonable allocation of funds, accounting for about 2.8% of the total new minting of the treasury over the next year, some community members have expressed doubts about its timing and effectiveness. The proposal is still in the forum discussion stage and has not yet been formally implemented.