The post Polkadot Proposes dotUSD Stablecoin With $5M Treasury Funding appeared on BitcoinEthereumNews.com.
Polkadot proposes a $5 million treasury plan for dotUSD, with DOT holders voting on its native stablecoin launch and future backing. Polkadot is considering launching a native stablecoin called dotUSD through its OpenGov governance system. If approved, the proposal will consume approximately $5 million of the network’s treasury. The proposal is known as Referendum 1944 and has been placed on the ballot. DOT holders will determine if Polkadot should have a stable value asset, called dotUSD. Community members across the Polkadot ecosystem initiated the idea. It was submitted via the Polkadot Community Foundation, which would only present it for a community vote. How Will Polkadot Fund the dotUSD Launch? The proposal needs approximately $5 million in initial treasury funding. The first dotUSD tokens would be minted using approximately $ 2.5 million worth of $2.5 million. Initial liquidity would be provided by another $2.5 million in DOT. This liquidity could be used for a DOT and dotUSD trading pool on Polkadot Asset Hub. A referendum proposing dotUSD, a protocol-native stablecoin for Polkadot, is now live on DOT DAO governance. The proposal was drafted by community members across the Polkadot ecosystem and submitted to OpenGov via the Polkadot Community Foundation. PCF’s role is limited to… pic.twitter.com/AcBEQ1Cj56 — Polkadot (@Polkadot) September 10, 2026 They would be able to swap DOT and dotUSD directly in the planned pool. This meant that users were no longer required to rely on external liquidity providers for the new stablecoin. Related reading: Uzbekistan Launches HUMO Stablecoin Payment Pilot DotUSD would be based on a stablecoin-backed model, but with a limited supply. Users would be able to mint and redeem dotUSD using an asset-backed stablecoin system. The proposal would also create a Peg Stability Module. This mechanism would establish key rules for the stablecoin, such as the initial minting…