A proposal to create a native stablecoin for the Polkadot network is gaining momentum. Introduced by Acala co-founder Bryan Chen, the stablecoin, dubbed pUSD, would be algorithmic and exclusively backed by DOT tokens.
It would operate on the Honzon protocol, a decentralized system managing collateralized debt positions. The design aims to reduce the ecosystem’s dependence on popular U.S. dollar-backed stablecoins such as Tether’s USDT and Circle’s USDC.
Early voting indicates strong support, with more than three-quarters of ballots cast in favor of the plan. So far, over 1.4 million DOT tokens worth $5.6 million have been staked in the vote, which remains open for another 24 days.
The pUSD stablecoin would be overcollateralized and include a savings module that allows holders to lock tokens and earn stability fee rewards.
If approved, the proposal could significantly strengthen Polkadot’s financial independence and promote greater self-reliance within its ecosystem.
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