Polkadot Community Backs Proposal for DOT-Backed Algorithmic Stablecoin pUSD

The Polkadot Community opened a PUSD proposal, which is fully supported by Stable STABLECOIN, by Dot Tokens, through a referendum on governance on the “Wish for Change” path.

The suggestion, which was detailed in the RFC-155, which was composed by Bryan Chen, will publish Stablecoin on Polkadot Asset Hub using the Honzon Protocol that was previously working on the AUSD project in Acala.

At the time of writing this report, Aye has 74.62 %, while Nay owns 25.40 %, compared to the approval threshold 80.40 %.

Source: Bulkadot

The initiative seeks to reduce the dependence of Polkadot on USDT and USDC, which is currently dominating the ecosystem with the maximum market combined of 74.05 million dollars, with 56.79 % dominance.

Source: Devillama

The proposal was born strongly due to his relationship with Acala, which collapsed Ausd Stablecoin after the exploitation of 2022, which affected confidence through the ecosystem.

Many prominent members voted against the proposal, noting specifically concerns about the participation of Acala.

Theglobedotters said that “”No one from Acala in any stablecoin should not participate in the ecosystem, especially the strategy like this, again at all.Noting that the Ausd failure stems from poor composition to collect liquidity rather than the defects of the Honzon Protocol.

The white rabbit shared similar concerns, voting against the proposal with the support of the original Stablecoin concept in principle.

The voter has identified two conditions for potential support. First, there is a clear guarantee not to involve any members of the ACALA team in development; Second, overseeing the explicit technical fellowship of governance and risk management.

Another member of the community indicated this.Akla died because of AUSDHe warned that the implementation of the rush could damage the reputation of Bolkadot.

On September 10, the founder of Polkadot Gavin Wood identified his vision of the Stablecoin approach to the ecosystem, which was previously proposed.

Wood confirmed that “”Polkadot will be intended not to have his original StablecoinThe specific requirements including full DOT guarantees, combating Polkadot governance, and security guarantee at the Dai level.

He expressed his support for the upcoming Hollar Stablecoin from Hydration while maintaining that Stablecoin at the level of DOT protocol is still strategically necessary.

Wood also presented a concept “stable“The point of the point that will accept some fluctuations while avoiding huge warranty requirements.

This average approach between the advanced excessive point and the strict pegs of the dollar will seek to “”Sleep the fluctuationFor users looking for partial stability without complete guarantee costs.

Until there is a range of pure point, Wood pointed out a preference for Hollar over USDT and USDC, although he acknowledged that the central stablecoins of the auditor’s motivation and practical integration.

The PUSD proposal reaches where Polkadot is implementing major symbolic changes, as it agreed to the maximum steel 2.1 billion points in September through the referendum 1710 with 81 % support.

The network turns from its inflationary model of 120 million annual editions to transfer to a decrease schedule that will reduce mining to less than 20 million by the early 1930s.

The current trading supply number is 1.6 billion points, as the total offer is expected to settle near 1.91 billion by 2040 under the new framework.

PUSD’s discussion is revealed against the increase in Stablecoin’s global dependence, with the total market value of more than $ 300 billion for the first time in September.

Source: Devillama

During this time, she witnessed for the first time on the New York Stock Exchange, its shares increased 400 % after the virtual, as it was evaluated for the USDC source at $ 30 billion, while Tether Stablecoin, who is compatible with the United States and seeks to obtain $ 500 billion of financing.

Looking at the rapid growth of the sector, Treasury Secretary Scott Payette will reach 3 trillion dollars by 2028 with the integration of Stablecoins into global payments and decentralized financing.

Citigroup also predicts a maximum of Stablecoin market between $ 1.6 trillion and $ 3.7 trillion by 2030, driven by clearer organization and institutional participation.

The bank has warned that senior exporters could become among the largest US Treasury holders by the end of the contract, which may disrupt traditional banking services by replacing the deposit.

The genius law, which was signed in July, presented a federal supervision of Stablecoin, which greatly helped this growth.

Meanwhile, a consortium of nine European banks, including ing, unicredit and Deutsche Bank, explores the euro -stable stablecooin to compete with the domination of the dollar.

As Mark Arolaa from Al -Alailji mentioned, European banks need “Move quickly to adopt and expand the euro -credibility steering wheelOr the risk of waivering us and Asian competitors.

Read the original story Polkadot Community Proposal for Stablecoin Pusd by Anas Hassan on Cryptonews.com