# Bitcoin Reserve for the Polkadot Treasury

**URL:** <https://forum.polkadot.network/t/bitcoin-reserve-for-the-polkadot-treasury/13221>\
**Category:** Governance\
**Tags:** treasury\
**Created:** [June 4, 2025, 7:09pm UTC](https://forum.polkadot.network/t/bitcoin-reserve-for-the-polkadot-treasury/13221 "2025-06-04T19:09:20Z")\
**Posts on this page:** 1\
**Showing post:** 6

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**Author:** ![hippiestank](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.polkadot.network/hippiestank/32/5621_2.png) [@hippiestank](https://forum.polkadot.network/u/hippiestank)\
**Post date:** [June 6, 2025, 4:54pm UTC](https://forum.polkadot.network/t/bitcoin-reserve-for-the-polkadot-treasury/13221/6 "2025-06-06T16:54:05Z")

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@et90266

Thank you for your reply. I appreciate some discussion and the opportunity to clarify goals and reasoning.

The goal of this proposal is to create a _ **resilient** _ treasury and ensure funding for ecosystem development through turbulent market cycles, starting with a Bitcoin Reserve.

**Timing**  
I believe the “DOT ATL, BTC ATH” argument misframes the situation.  
This proposal is about risk management and operational continuity, not market timing or speculation.

The “timing isn’t right” argument has been raised each time this discussion has been brought up, but if we wait for “perfect timing” we will never diversify. Lets focus on **time in** the market, not _timing_ the market. The DCA mechanism helps average our cost through the peaks and valleys.

**Operational Resilience**

> [@et90266](#):
>
> Yes DOT has decreased ~60% vs. BTC since the WFC was first proposed in January, however had it been enacted then, the net gain for the Treasury would have been ≈$1.5M, all else being equal. So the Treasury would now have $124M in assets instead of $122.5M. That’s a **2.46%** annualize return.

This analysis illustrates why diversification works. A 2.46% annualized return during a 60% DOT decline vs BTC is great risk-adjusted performance. While the upside seems small now, if the decline continues, the difference compounds significantly and the community continues to function.

**Market Confidence**

> [@et90266](#):
>
> Buffett famously said he prefers buying back $BRK shares when they’re underpriced, rather than spending cash on overpriced acquisitions.

Share buyback is more analogous to burning tokens. This proposal is not about manipulating scarcity, it is about economic resilience through portfolio diversification, something the Buffet approach supports, and is demonstrated in how Berkshire Hathaway holds their operating capital.

Risk management is fundamental to every major institution. Nobody concentrates 100% of their operating capital in a single asset, even the Ethereum Foundation has diversified into other assets. By showing the ability to introduce risk management into our system we are signaling that Polkadot is truly maturing into a modern and resilient enterprise.

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