Polkadot Community Backs Proposal for Native Stablecoin
A proposal to create a native stablecoin within the Polkadot ecosystem has gained strong community support. Bryan Chen, Acala's chief technology officer and co-founder, presented the plan for pUSD, a DOT token collateralized stablecoin, on Sunday.
The voting process shows that over 75% of participants are backing the measure, with more than 1.4 million DOT tokens, valued at approximately $5.6 million, committed to the ballot so far. The voting period extends for another 24 days before final results are determined.
pUSD would function through Acala's Honzon protocol, which specializes in decentralized stablecoins and collateralized debt positions. Chen argues that Polkadot Hub requires its own DOT-backed stablecoin to prevent loss of liquidity, benefits, and security to external platforms.