Polkadot Community Backs Proposal for DOT-Backed Algorithmic Stablecoin pUSD

The Polkadot community has opened a vote on a proposal for pUSD a native stablecoin backed entirely by DOT tokens through a governance referendum currently underway on the network’s “Wish for Change” ￰0￱ proposal detailed in RFC-155 and authored by Bryan Chen

would deploy the stablecoin on Polkadot Asset Hub using the Honzon protocol previously employed by Acala’s failed aUSD ￰1￱ the time of writing Aye holds 74.62% while Nay holds 25.40% against an 80.40% approval threshold.) September 2

2025 He expressed support for Hydration’s upcoming HOLLAR stablecoin while maintaining that a protocol-level DOT-backed stablecoin remains strategically ￰2￱ also introduced the concept of a “ stable-ish ” DOT asset that would accept some volatility while avoiding massive collateral ￰3￱ middle-ground approach between hyper-volatile DOT and strict dollar pegs would seek to “ soften volatility ” for users seeking partial stability without full collateralization ￰4￱ a pure DOT stablecoin exists Wood indicated a preference for HOLLAR over USDT and USDC though he acknowledged that centralized stablecoins may still be needed for validator payouts and practical ￰5￱ pUSD proposal arrives as Polkadot implements major tokenomics changes

having approved a 2.1 billion DOT hard cap in September through Referendum 1710 with 81% ￰6￱ network is shifting from its inflationary model of 120 million annual DOT issuance to a declining schedule that will reduce minting to below 20 million by the early ￰7￱ current circulating supply stands at 1.6 billion DOT with the total supply projected to stabilize near 1.91 billion by 2040 under the new ￰8￱ Stablecoin Market Exceeds $300B as Regulatory Framework Solidifies The pUSD debate unfolds against surging global stablecoin adoption with total market capitalization surpassing $300 billion for the first time in September.