- Polkadot has opened an on-chain vote on a DOT-backed stablecoin called pUSD, drawing both strong support and sharp criticism.
- The earlier failed aUSD stablecoin project raises concerns about governance and technical trust.
- Polkadot founder Gavin Wood is pushing a stablecoin strategy aimed at stabilizing validator rewards.
The Polkadot community is weighing one of its most consequential proposals to date: the launch of a native stablecoin fully collateralized by DOT tokens.
Known as pUSD, the initiative is being considered through an on-chain referendum that has rapidly attracted intense interest, enthusiastic backing, and pointed criticism in equal measure.
Polkadot emphasizes a native stablecoin
The proposal was introduced by Bryan Chen, co‑founder and chief technology officer of Acala, via RFC‑155.
It seeks to implement a DOT‑backed stablecoin on Polkadot’s Asset Hub, using the Honzon protocol.
Honzon previously powered Acala’s failed aUSD stablecoin—an association that has fueled both technical optimism and community skepticism.
Chen argues that Polkadot needs a native, decentralized stablecoin to reduce dependence on USD‑pegged tokens like USDT and USDC, which dominate liquidity in the broader market.
He warned that without its own stablecoin, the network risks losing liquidity and strategic advantage to competing chains that already support native stable assets.
At the time of writing, over 74.6% of votes cast favor the measure, though it has not yet reached the 79.7% approval threshold required for adoption.
More than $5.6 million worth of DOT—over 1.4 million tokens—has already been committed to the vote.
The referendum remains open for another three weeks, so the final outcome is still uncertain.
Acala’s legacy and community doubts
While the case for a DOT‑backed stablecoin is clear to many, memories of Acala’s 2022 collapse still weigh heavily on the discussion.
Acala’s aUSD was crippled by an exploit that eroded trust and caused financial harm across the ecosystem.
Critics contend that anyone closely associated with Acala should not be tasked with launching another large‑scale stablecoin, regardless of the underlying protocol’s merits.
Some of the network’s most vocal participants have voted against the proposal, citing the risk of repeating past mistakes.
A group calling itself TheGlobedotters argued that Acala should never again be entrusted with strategic projects of this magnitude, while others have emphasized the need for stringent oversight from the Polkadot Technical Committee before any stablecoin deployment.
Another community member, White Rabbit, opposed the proposal in its current form but indicated conditional support might be possible if Acala is explicitly excluded from development and robust governance safeguards are guaranteed.
Gavin Wood outlines a broader vision for Polkadot
Polkadot founder Gavin Wood added gravity to the debate by sketching a broader strategy for stable assets across the ecosystem.
Earlier this month Wood argued Polkadot should pursue multiple approaches, including fully collateralized native stablecoins and what he described as “stable” assets designed to reduce—but not eliminate—DOT price volatility.
Wood also emphasized that validator incentives are a critical consideration. He proposed paying validators directly in a DOT‑backed stablecoin like pUSD rather than in variable DOT rewards.
According to Wood, this shift would stabilize validator income, attract institutional participants, and strengthen the network’s long‑term security model.
Under the plan, DOT would serve as collateral and pUSD would be minted against it, with liquidation mechanisms intended to keep the peg intact.
Proponents argue this design could resolve a longstanding issue: large swings in validator earnings tied to DOT price volatility.
The community debate continues, balancing the potential strategic advantages of a native, DOT‑backed stablecoin against lingering governance and security concerns rooted in past failures.