Switch to seedless. Get 30% off with SWITCH30 till Oct 16Polkadot unveils dotUSD stablecoin with community governance
6.8 Stablecoins Polkadot launched dotUSD, a stablecoin governed by DOT holders. The first phase uses USDT as collateral, with DOT-backed minting planned. The launch had strong support, but DOT price fell toward $1.
Polkadot has launched its native stablecoin, dotUSD, on mainnet, introducing a decentralized digital asset governed by DOT holders via the OpenGov system. The launch was approved by Referendum 1944, which received 98.4% support and about 4.3 million DOT in backing votes. In its initial phase, users can mint dotUSD one-for-one against USDT, making the stablecoin’s early infrastructure reliant on Tether’s reserves. This approach has sparked discussion, as it contrasts with Polkadot’s decentralization goals, given Tether’s ability to freeze reserves. Future phases will introduce a DOT-backed borrowing system and additional decentralized collateral options, though no launch date has been set. Despite strong community support, DOT’s price declined toward $1 after the launch. The rollout of dotUSD marks a major step for Polkadot in the stablecoin market, emphasizing community governance and a phased approach to decentralization.
