Polkadot Proposes Launching Native Stablecoin dotUSD

Polkadot is considering launching its 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, known as Referendum 1944, has been placed on the ballot and DOT holders will determine if Polkadot should have a stable value asset. Community members across the Polkadot ecosystem initiated the idea through the Polkadot Community Foundation, which presented it for a community vote.

The first dotUSD tokens would be minted using approximately $2.5 million worth of assets, and 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.