Odaily Planet Daily reports: The Polkadot community has launched OpenGov Proposal #1944 to create a native decentralized stablecoin, dotUSD, and establish it as the primary stable value asset within the Polkadot ecosystem. The proposal is currently undergoing governance voting. According to the proposal, dotUSD will operate on an over-collateralized mechanism, allowing users to mint dotUSD by locking DOT in the future. The system will also implement a stability pool, liquidation mechanism, and redemption mechanism to maintain its peg to the US dollar. The proposal plans to use Polkadot treasury funds to provide initial liquidity for the DOT/dotUSD liquidity pool, allocating $2.5 million in USDT for dotUSD minting and an additional $2.5 million worth of DOT to the liquidity pool, for a total initial funding of $5 million. dotUSD will be rolled out in phases: Phase one will use USDT as reserve backing for minting, while Phase two will introduce the full DOT collateral vault, oracles, stability pool, liquidation, and redemption mechanisms.
Polkadot Proposes Native Stablecoin dotUSD with $5M Initial Funding
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Summary
Polkadot project funding news includes a new OpenGov proposal to launch dotUSD, a native stablecoin designed to drive ecosystem growth. The plan involves minting dotUSD using over-collateralized DOT, with an initial $5 million fund allocated between USDT and DOT. The rollout will begin with USDT-backed minting, followed by a transition to full DOT collateralization and stability mechanisms. Ecosystem growth is a central focus as the community advocates for a primary stable value asset.
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