Key Highlights
- Polkadot submitted OpenGov Referendum 1954 on October 12 to establish a binding strategic mandate for the DOT DAO.
- The proposal prioritizes user acquisition over metrics such as ecosystem size and total value locked, shifting the focus toward competing with Web2 and mobile platforms.
- It calls for a native, permissionless DOT-backed stable-value asset model, with dotUSD identified as the priority currency.
Polkadot, a multi-chain Layer-0/Layer-1 blockchain protocol, has proposed a new strategic direction for the DOT DAO through OpenGov. Submitted on October 12, the proposal seeks to establish a binding strategic mandate for the DAO.
The protocol describes the proposal as a mandate rather than a technical specification. The Fellowship and implementing entities would retain autonomy over technical guidance and execution details, provided their work aligns with the mandate if approved. It outlines several core priorities intended to guide DOT DAO activities.
The DOT DAO would prioritize user acquisition over other key performance indicators, such as ecosystem size and locked value, for the time being. The document frames this as a shift from competing primarily with other smart-contract platforms to competing with Web2 and mobile platforms.
It argues that attracting users should take priority over expanding product teams or integrations. Under this approach, fewer products or integrations with larger user bases would be preferable to a broader ecosystem with fewer users.
Economic infrastructure through dotStables
The proposal calls for the introduction of “dotStables,” a category of permissionless stable-value DOT-backed derivatives backed by DOT, including dotUSD. These assets would serve as a link between value used by consumers and demand for DOT. The proposal aims to translate demand generated by products on the Polkadot Product Platform into demand for the network’s native token.
It proposes a single native permissionless DOT-backed implementation based on a model similar to Liquity. The system would use DOT as collateral, incorporate Polkadot-specific features, and undergo professional audits. The DOT DAO could subsidize and support selected implementations.
The proposal identifies dotUSD as the priority, arguing that a single primary currency could offer advantages across the platform. It also recognizes that native support for local currencies could be important. Other implementations would not be prohibited, but those supported by the DOT DAO would receive priority.
Recent dotUSD launch
The proposal follows the launch of dotUSD on Polkadot’s mainnet on October 8. The stablecoin was approved through OpenGov Referendum 1944, which also established a DOT-dotUSD liquidity pool and treasury funding for early liquidity.
The referendum passed with 98.4% support, representing approximately 4.3 million DOT. DotUSD operates without a private company acting as its issuer, with key decisions involving DOT holders through on-chain governance.
Polkadot product platform for user acquisition
The proposal links user acquisition to the development of a Polkadot Product Platform and selected core product features. The DOT DAO would support efforts to increase adoption of the platform and products considered best positioned to generate demand for dotStables.
This support could include user incentives and funding for targeted communications based on published and reviewed research.
The proposed platform would cover a broad range of functions, including data storage, logistics, signalling, referencing and user interfaces. It would also be designed as a full-stack system compatible with existing parachain infrastructure. Community services would be integrated wherever possible. The proposal states that incentive distributions funded by the DOT DAO should rely exclusively on on-chain logic and reach individual human users, subject to algorithmic per-person limits.
Communications efforts would be handled by ecosystem entities with a track record of quality and cost-sensitive execution. The Polkadot Community Foundation is noted as having a well-aligned mandate in this area.
User experience and Web3 standards
The proposed Polkadot Product Platform would aim to bring the user experience and economic models of its products closer to those offered by Web2 and modern mobile platforms.
The proposal identifies freemium models, human-readable references that do not rely on cryptographic addresses, mobile-first design, and broad web accessibility as key features. Freemium services would use proof-of-personhood systems and subsidized per-person usage.
It also identifies a system called “Individuality,” based on zero-knowledge cryptography and co-attestation, as ready for production deployment.
At the same time, products would adhere to Web3 standards, including self-sovereignty, privacy, and zero logins. The proposal defines privacy in terms of allowing users to control what information they disclose. It also states that users should be able to choose trade-offs between privacy, performance, and cost.
The document acknowledges that combining Web2 compatibility with Web3 principles presents technical challenges and may require incremental development over time.
Execution and resource allocation
The proposal calls on the DOT DAO to invite and require funded entities, including the Fellowship, to support the strategic mandate. This could involve bringing selected components under existing support and maintenance arrangements and using governance tracks to oversee deployment.
It argues that the additional workload could be managed through the modular structure of the relevant code and advances in large language model (LLM) tooling.
However, the document describes the mandate as aspirational. Detailed technical assessments and implementation decisions would remain with the Fellowship and other aligned ecosystem participants.
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