Polkadot Votes on Native pUSD Stablecoin Proposal Backed by DOT

Polkadot’s community is considering a landmark initiative: the launch of a native algorithmic stablecoin backed entirely by DOT.

The proposal, introduced by Bryan Chen, co-founder and CTO of Acala, envisions a self-sustaining coin called pUSD that would reduce reliance on external assets such as USDT and USDC.

Under the plan, pUSD would be issued via Acala’s Honzon protocol, which manages overcollateralized debt positions. An optional savings feature would allow users to lock tokens and earn yield from stability fees, creating a built-in incentive system.

Early voting shows strong momentum. More than 75% of participants have supported the proposal so far, with 1.4 million DOT (about $5.6 million) already committed. The governance window remains open for another 24 days, giving more holders the chance to weigh in.

Chen argued that Polkadot risks falling behind ecosystems that already run their own native stablecoins. A chain-issued option, he said, would help secure liquidity and strengthen Polkadot’s competitive position, while ensuring the peg is maintained through on-chain mechanisms and economic incentives rather than centralized actors.

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Skepticism remains, however. The shadow of TerraUSD’s 2022 collapse lingers, leaving some observers cautious about algorithmic designs. Proponents counter that censorship resistance and permissionless access make such models essential for decentralized finance, even if regulatory scrutiny intensifies.

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