Polkadot proposes native stablecoin dotUSD with $5 million initial funding

The Polkadot community has introduced OpenGov proposal 1944 to launch dotUSD, a native decentralized stablecoin. The proposal outlines an over-collateralized mechanism using DOT and plans to allocate $5 million from the Polkadot treasury for initial liquidity, split between USDT and DOT. The rollout will occur in two phases, starting with USDT-backed minting followed by the integration of full DOT collateralization, oracles, and liquidation mechanisms.