Polkadot has launched dotUSD on its mainnet on Thursday, giving the network a native dollar-pegged stablecoin that is governed through its on-chain OpenGov system. The launch means dotUSD does not have a private company acting as its issuer. Instead, DOT holders will have a role in making key decisions about the stablecoin through Polkadot’s governance system.
According to the platform’s forum, the launch was approved through OpenGov Referendum 1944, which created dotUSD and set out how it would operate.
The referendum also approved a DOT-dotUSD liquidity pool and treasury funding to provide liquidity during the early stage of the launch. The proposal passed with 98.4% support, backed by about 4.3 million DOT.
Stablecoin starts with a simple model
dotUSD runs on Polkadot Hub and is based partly on the design of Liquity v2’s BOLD stablecoin. However, Polkadot is not starting with the full system at once. The first stage uses a simpler way to keep dotUSD close to $1, allowing the stablecoin to begin circulating before the planned DOT-backed system is added.
For now, users can mint dotUSD one-for-one against USDT through a Peg Stability Module. In simple terms, users can provide USDT and receive the same value in dotUSD. They can also redeem their dotUSD for $1 worth of USDT, although an initial limit has been placed on the amount of dotUSD that can be supplied.
Next phase will use DOT
This first stage also means users can hold dotUSD without having DOT in the same account. The system does not yet need price oracles or liquidation rules, which are expected to become part of the later version of the stablecoin.
The bigger change is planned for the next phase. Polkadot wants users to be able to lock DOT as collateral and mint dotUSD against it. That system will add price oracles, liquidations, a stability pool, and redemption features based on the Liquity model. Borrowers will also be able to choose interest rates for their positions.
DotUSD follows an earlier proposal
The road to the launch started earlier. In September, Referendum 1944 was still being voted on by Polkadot’s OpenGov community.
At that time, 97.6% of votes cast supported the proposal, with about 2.39 million DOT counted on the Aye side. The proposal was submitted by the Polkadot Community Foundation as a plan to create a protocol-owned stablecoin for the network.
The idea of a DOT-backed stablecoin is older than the current launch. In September 2025, Acala co-founder Bryan Chen proposed pUSD, a native stablecoin that would use DOT as collateral. That earlier idea helped form part of the background behind plans for a Polkadot-native stablecoin.
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