Polkadot Votes on DOT-Backed pUSD Stablecoin Referendum
Polkadot has launched an on-chain referendum (RFC-155) to introduce pUSD, a new algorithmic stablecoin backed exclusively by DOT via the Honzon protocol on the Asset Hub. Proposed by Acala co-founder Bryan Chen, the plan aims to reduce reliance on USDT and USDC—which control over $74 million in Polkadot liquidity—and enhance DeFi activity, network security, and validator rewards by offering optional savings modules that earn stability fees. To date, 74.6% of votes and about 1.4 million DOT (∼$5.6 million) have been committed. The proposal needs 79.7% approval within three weeks to pass. Critics point to Acala’s failed aUSD and TerraUSD collapse, calling for stronger governance safeguards, while founder Gavin Wood supports paying validators in pUSD to stabilize rewards and attract institutions. If approved, pUSD could boost DOT demand, diversify validator income, and reshape Polkadot’s DeFi ecosystem.
Bullish
The pUSD referendum is likely bullish for DOT because minting the stablecoin requires DOT collateral, boosting on-chain demand and staking activity. Short-term, DOT price support may come from the 1.4 million DOT already committed in votes. Long-term, a successful native stablecoin can enhance DeFi liquidity, diversify validator income streams, and improve network security, all of which strengthen DOT’s utility and investor confidence. Despite governance concerns over past algorithmic stablecoin failures, market anticipation of increased token usage and institutional interest should drive positive sentiment.