Polkadot Eyes Native DOT-Backed Stablecoin Amid 75% Approval

- Polkadot proposes pUSD, a DOT-backed algorithmic stablecoin. - Governance vote sees 75% approval with key ecosystem backing. Polkadot is advancing plans for pUSD, a native algorithmic stablecoin aimed at reducing reliance on centralized options like USDT and USDC while fueling ecosystem growth. Spearheaded by Acala co-founder and CTO Bryan Chen, the proposal seeks to strengthen platform stability with an ecosystem-specific stablecoin backed entirely by the DOT token. On September 29, 2025, Cointelegraph reported that pUSD will operate as an overcollateralized debt token using the Honzon protocol, Acala’s decentralized stablecoin system. The design also includes an optional savings mechanism, allowing pUSD holders to earn interest. Chen, who described the proposal as “strategically essential,” has gained visible support from Polkadot co-founder Gavin Wood. Community feedback indicates strong initial approval for the project, with early governance voting revealing 75.4% support, which is approaching the required threshold of 85.6%. However, some stakeholders have raised concerns about the risks of a single-asset collateralization model. These concerns are heightened by the collapse of TerraUSD (UST), which sparked industry-wide skepticism toward algorithmic stablecoins. The initiative reflects a broader cryptocurrency trend of launching native stablecoins to enhance liquidity and foster ecosystem-centric innovation. Consequently, Polkadot’s pUSD proposal represents a pivotal move to boost the platform's autonomy and competitiveness. Governance voting continues as stakeholders assess the proposal’s merits. According to CoinMarketCap, Polkadot (DOT) traded at $3.982 as of 15:14 UTC on September 29, and its 24-hour trading volume changed by 3.08%.