Polkadot Votes on Native Stablecoin Backed by Its Own Token

Polkadot's community is voting on a proposal to create a native decentralized stablecoin called dotUSD, which would be backed by DOT. The plan aims to make dotUSD the network's primary stable-value instrument and eventually back it mainly with DOT.

The initial phase of the plan has already been built on-chain and allows users to mint dotUSD one-for-one against USDT, subject to a supply cap. This means that initially, dotUSD would be minted against USDT before a second phase introduces DOT-backed vaults, liquidations, and redemptions.

The full system would let users lock DOT to mint dotUSD while using on-chain mechanisms to maintain its dollar peg. The proposal was drafted with contributions from builders, developers, and other participants in the Polkadot ecosystem.