Polkadot Considers Native Stablecoin dotUSD

Polkadot's governance is currently considering Referendum 1944, a proposal to introduce dotUSD, a protocol-owned decentralized stablecoin designed to serve as the network's primary stable-value instrument. The initiative aims to reduce reliance on external stablecoins like USDT and USDC, while also expanding the utility of Polkadot's native DOT token. The proposal outlines a two-phase rollout. Phase one, already built on-chain, would allow users to mint dotUSD one-for-one against USDT, subject to a supply cap. This initial phase would not require an oracle, collateral vaults, or liquidation infrastructure. Phase two, the long-term vision, would introduce DOT-backed collateral vaults, an oracle, stability mechanisms, and a redemption system, making dotUSD an overcollateralized stablecoin drawing on designs similar to Liquity v2. Users would deposit DOT into vaults and borrow dotUSD against it, with liquidations managed by a stability pool and redemption mechanisms. An archived snapshot of the governance vote showed approximately 2.4 million DOT in support and 59,900 DOT against, indicating a 97.5% approval margin at that point.