Polkadot proposes $3M dotUSD stablecoin plan

• Polkadot has proposed dotUSD, a native stablecoin, through OpenGov referendum 1944.
• The plan uses USDT first before adding DOT-backed vaults in a second phase.
• The proposal has set aside $3 million for minting and initial liquidity.

Polkadot (CRYPTO:DOT) has proposed dotUSD, a native stablecoin designed to maintain a value of $1.

The proposal follows Acala’s aUSD collapse in 2022 and a stalled pUSD plan from 2025.

Referendum 1944 has entered Polkadot’s OpenGov Root track, which handles decisions affecting the protocol itself.

The first phase will let users mint dotUSD using USDT (CRYPTO:USDT), with a cap and no need for price oracles or liquidation systems.

The second phase will add DOT-backed vaults, price feeds, liquidations and a stability pool to support the stablecoin system.

The proposal allocates $1.5 million in USDT for minting and $1.5 million in DOT for the initial dotUSD liquidity pool.

The plan gives Polkadot a native stablecoin while delaying the more complex DOT-backed system until its supporting infrastructure is ready.

At the time of reporting, Polkadot price was $1.12.