CMC News

$DOT Stablecoin Proposal Sees Strong Community Support

Bryan Chen, Acala's chief technology officer and co-founder, presented a #proposal on Sunday for developing pUSD, a native #stablecoin exclusively collateralized by $DOT tokens. The initiative seeks to establish an algorithmic stablecoin directly within the Polkadot ecosystem, addressing current dependencies on external stablecoins.

The voting process shows substantial early backing, with over 75% of participants supporting the measure. More than 1.4 million $DOT tokens, valued at approximately $5.6 million, have been committed to the ballot so far. The voting period extends for another 24 days before final results are determined.

The proposed pUSD would function through Acala's Honzon protocol, which specializes in decentralized stablecoins and collateralized debt positions. Chen's #motivation centers on ecosystem strengthening, arguing that Polkadot Hub requires its own $DOT-backed stablecoin to prevent loss of liquidity, benefits, and security to external platforms.