root

- A group called ChaosDAO, JUST Ventures, and Hydration proposed to get stable money (USDT and USDC) using Polkadot's treasury.
- They want to change 5,001,000 DOT into equal parts of 2,500,000 DOT into USDT and USDC over a year.
- This plan will help keep the value of the treasury steady and safe for future expenses.
- They will sell small amounts of DOT regularly to avoid big price changes and make the process efficient.
- They are using a special method called DCA (Dollar-Cost Averaging) to make the exchange smoother.
- The proposal also aims to use some of the funds to earn interest while they are waiting to convert.
- This plan involves sending funds to different places using a process called XCM.

Deciding

**Track**: Root

**Proposer**: ChaosDAO, JUST Ventures, Hydration

**Date**: March 2025

**Requested allocation**:  5,001,000 DOT

**Short description**:  We proposed a structured approach for the Polkadot Treasury to obtain native USDT and USDC, for the purpose of diversification and enabling it to pay out expenses in a stable asset. Through this referendum, we aspire to renew the schedule presented in proposal #457 and convert 2,500,000 DOT into USDT and 2,500,000 DOT into USDC via the DCA mechanism described in detail below, where an additional 1000 DOT is reserved for transaction fees. This proposal presents a long-term solution to acquire different tokens in exchange for treasury DOT by Polkadot governance participants.

___________________________________________________________________________________

**Context of the proposal:**

Probably one of the most-requested features is the ability to make Treasury proposals in stablecoins like USDT and USDC. This is for many reasons, including less volatility around Treasury proposals and preserving the value of the Polkadot Treasury to ensure funds are available to support a given budget in the future.

With the latest upgrades to Substrate and the Polkadot runtime, the Treasury has a lot more tools available to it for its management, including proposals with non-DOT assets like stablecoins.

As was done in referendum 457, this proposal is to convert 5,000,000 DOT to USDT and USDC over the course of the next year, with 50% going to each. This uses Hydration's DCA feature to convert a little bit each day and ensure a steady flow of stablecoins into the Treasury.

Unlike 457, this referendum sells a fixed amount of DOT per trade rather than acquiring a fixed amount of USDT/C. For better capital efficiency, the full amount of DOT will be also initially converted into aDOT (yield-bearing collateral token) and supplied into the Hydration Borrow feature. By doing so, the Polkadot Treasury will accumulate yield on the dormant DOT, while substantially increasing the DOT supply available for borrowing, thus enabling more DeFi use cases. More details can be found in [this post](https://polkadot.subsquare.io/posts/401). 

Moreover it newly utilizes the “Rolling DCA” feature, which enables renewing the schedule just by sending DOT to the proxy account. This in turn means other governance tracks with lower security assumptions, such as Treasurer, can be used for smaller topups if needed. 

This amount accounts for about 22% of the new DOT expected to be minted into the Treasury over the next year (this could vary based on variables like the staking rate).

**Proposal objective(s) or solution(s):**

The central proposition entails the creation of a schedule that converts DOT into USDT and USDC via the DCA feature on Hydration, a parachain on Polkadot.

The attributes of this proposal are:
- Cost-efficiency (approx. 0.4% of the total amount)
- No necessity to appoint curators who oversee and manage the process
- Conversion is done in small amounts over a longer period which provides a hedge for price volatility and manipulation

DCA schedule parameters: [USDT]

- Total duration with current EMA7 price: 365 days
- Total amount: 2,500,000 DOT
- Trade frequency: One trade every 20 blocks (approx. 4 minutes)
- Per trade: 20 DOT
- Per day: 7200 DOT
- Send to asset hub after accumulating: 5,000 USDT
- Total fee estimation: 0.4% of total amount acquired

DCA schedule parameters: [USDC]

- Total duration with current EMA7 price: 365 days
- Total amount: 2,500,000 DOT
- Trade frequency: One trade every 20 blocks (approx. 4 minutes)
- Per trade: 20 DOT
- Per day: 7200 DOT
- Send to asset hub after accumulating: 5,000 USDC
- Total fee estimation: 0.4% of total amount acquired

Fee estimation breakdown:

- Trade fee: 0.3% (0.25% to Liquidity Providers, 0.05% to the protocol)
- Slippage fee: 0.045% (→AMM)
- Transaction fee on Hydration: 0.035% (→Protocol treasury)
- Transaction fee on Polkadot Asset Hub: 0.02% (→Asset Hub collators)

**Note**: Fees depend heavily on the schedule settings and are estimated based on parameters used. It is worth mentioning that the Hydration protocol also uses dynamic fees based on block space utilization ranging 0.15-5% to protect liquidity providers in times of volatility. All time average trade fees as of proposal submission are around 0.3%.

**Description of steps utilizing XCM to achieve the solution:**

- Send 5,000,001DOT from the Polkadot treasury to the Pure Proxy account [7N4oFqXKgeTXo6CMSY9BVZdHP5J3RhQXY77Fe7qmQwjcxa1w] controlled exclusively by the relay chain sovereign account on Hydration [7KQx4f7yU3hqZHfvDVnSfe6mpgAT8Pxyr67LXHV6nsbZo3Tm]

- After 1 block to process balance state changes on Hydration, schedule sending an XCM program to Transact on Hydration. This will initiate two DCA schedules, each with a total amount of 2,500,000 DOT, swapping 20 DOT to USDT and USDC every 20 blocks.

- Once the first USDT chunk is accumulated, initiate a periodic schedule that sends cross-chain chunks of 5,000 USDT and 5,000 USDC from the Pure Proxy on Hydration to the General Treasury account on the Polkadot Asset Hub [14xmwinmCEz6oRrFdczHKqHgWNMiCysE2KrA4jXXAAM1Eogk], totaling to max. 27500 transactions.

Renewal of treasury USDT and USDC Acquisition 

- There was a problem where an attacker took control of some important keys, preventing funds from being accessed.
- To fix this, a plan was made to move the funds to a safe account that no one controls.
- The plan involves two main steps: first, stopping the attacker's control, and second, sending the funds back to users later.
- They have a limited time of 16 days to act and need to pass a new proposal quickly.
- They worked with experts to ensure the plan is secure and well-reviewed.
- The proposed changes include removing the attacker's access and securing the affected funds.
- Tests show that their strategies were successful in a practice environment, helping them regain control and protect the money.

Executed

Emergency Response Plan for Securing 200,000 DOT

TimedOut

please ignore

- An attacker stole over 312,185 DOT and 126,837 USDT from a parachain.
- The attacker gained control by upgrading the runtime with malicious code.
- They moved most of the stolen funds to exchanges and sold them for XMR.
- The attacker still has control over the parachain, putting more DOT at risk.
- A runtime upgrade is needed to stop further losses and secure user funds.
- The upgrade will restore control and remove the attacker's privileges.
- Efforts are being made to recover stolen funds and improve security.
- The community is being kept informed and encouraged to provide feedback.

Critical Runtime Upgrade to Prevent Further Exploitation

Parallel Finance is a project involved in governance issues within the Polkadot community. Here's a summary of recent events:

- A proposal was made to not return control to the Parallel Finance team due to evidence of fraud.
- The team is suspected of performing illegal activities, including the secret minting and burning of tokens.
- They are reported to have removed their identity to hide their actions but records of their activities are still available.
- Several accounts linked to Parallel Finance are potentially involved in these illicit operations.
- It is believed that over $16 million worth of assets might be affected.
- The community will decide what steps to take next regarding these findings.

Subject: Parallel Finance Guilty- Request for Investigation

- Some projects can't access their Polkadot OpenGov funds on Asset Hub because the pure proxy multisig setup only works on the relaychain.
- To fix this, the setup needs to be replicated on Asset Hub using guidelines by Basti, a Polkadot Technical Fellowship Grand Architect.
- Projects with inaccessible funds include Heroic, PBA, Polytope Labs, and the Social Media Editorial Board.
- The Social Media Editorial Board recently received their funds after a referendum was submitted.
- A new referendum is being resubmitted with an updated call to help other projects access their funds.
- The pure proxy setup has been tested on Asset Hub using Chopsticks.
- A screenshot shows the successful test of the pure proxy setup on Asset Hub.

Pure Proxy Replication for accounts with inaccessible funds on Asset Hub

[DO NOT PLACE DECISION DEPOSIT] Check the new referendum submitted

- The Polkadot Ambassador Fellowship Manifesto aims to improve a program based on community feedback and past experiences.
- It focuses on learning from mistakes and creating a strong plan for the future.
- The manifesto emphasizes teamwork and community support instead of competition.
- It seeks to rebuild shared values and principles to bring people together.
- The program is designed to be easy to join, but also organized and structured.
- It invites everyone to participate and helps them find their own paths in the community.
- The goal is to create a strong, decentralized community that lasts over time.

The Polkadot Ambassador Fellowship

Please reject/ignore.

[Root] Please reject/ignore

- A new referendum proposes converting part of Polkadot Treasury's DOT assets into stable coins (USDT and USDC).
- Similar to Referendum 457, it uses Hydration's DCA feature to sell a fixed amount of DOT daily.
- The conversion plan spans one year.
- Unlike Referendum 457, this proposal sells a fixed amount of DOT per trade, not a fixed amount of stable coins.
- For more details, methodology, and calculations, see the [proposal document](https://docs.google.com/document/d/113gRdJ-LxqbzhSZZOewL1XPLINjOG0oFtNM9IZVQFX8/edit).

WHO: Polkadot Treasury

WHAT: Gradually convert part of DOT assets into stable coins (USDT and USDC) using Hydration's DCA feature to sell a fixed amount of DOT per day.

PRICE/TIMEFRAME/RESOURCES: Not specified. Refer to the proposal doc for more details.

Convert Part of DOT Assets to Stablecoins

- Current designs of DAOs use money from speculation.
- This money can cause problems instead of helping.
- The system does not work well for everyone.
- A new idea is to create special tokens that are not easily sold.
- This will help people use a stable type of money called a stablecoin.
- The goal is to keep the money and benefits within the community.

WHO: Not specified
WHAT: Proposing an alternative approach to current DAO designs by minting illiquid/vesting network token for on-chain impact and driving economic adoption of native stablecoin issued by Brale with yield staying within ecosystem.
PRICE/TIMEFRAME/RESOURCES: Not specified.

forceSetBalance treasury to 0

### Proposal Summary

- **Objective**: Reduce the minimum balance (minBalance) of USDT and USDC on AssetHub from 0.07 to 0.01.
- **Context**: Following the successful launch of Novasama's Telenova app, discussions aim to make Polkadot surpass competitors like Solana and Tron in stablecoin payments.
- **Proposed Changes**:
  - Lower minBalance of stablecoins to $0.01.
  - Reduce transaction fees on AssetHub by a factor of 10.
  - Achieve sub-1-second block times through Elastic Scaling.
- **Impact**: These changes, combined with apps like Telenova, could make AssetHub (and Polkadot) the preferred platform for fast, cheap, and reliable stablecoin transfers.
- **Testing**: The proposal was tested successfully using Chopsticks by experienced developers.

**Proposal to reduce the minimum balance of USDT and USDC on AssetHub to $0.01 from $0.07 to improve stablecoin payments and transfers on Polkadot.** This proposal is part of a larger plan to reduce transaction fees and block times on AssetHub and make Polkadot a hub for cheap, fast, and reliable stablecoin transfers. The proposal was tested successfully and prepared by a member of the Fellowship.

Reduce minBalance of USDT/C to 0.01

lol - NAY

- There is a referendum about giving money to the Fellowship sub-treasury.
- The plan is to send 2 million DOT from the main Treasury.
- The amount was increased from 1 million to 2 million based on feedback.
- The Fellowship can directly approve funding proposals.
- Teams with technical projects can ask for support from the Fellowship.
- Other groups can also give proposals from their own sub-treasuries.
- Future changes could help automatically send money to sub-treasuries.

WHO: Polkadot community

WHAT: Referendum to send 2 million DOT from the "main" Treasury to the Core Fellowship sub-treasury for direct funding proposals

PRICE/TIMEFRAME/RESOURCES: Not specified

Funding the Technical Fellowship Sub-Treasury

PLEASE VOTE NAY

Root Proposal Summary

- The proposal is being resubmitted because it is important and addresses privacy concerns.
- It is not just about spending money; it has bigger meanings that need to be thought about carefully.
- The root track is the best place to share this important idea.
- Improvements based on community feedback include:
  - Helping new users on Moonbeam more.
  - Upgrading support from Gold to Platinum.
  - Doubling support hours from 200 to 400.
  - Tripling the training capacity from 10 to 30 people.
  - Increasing investigation licenses from 5 to 7.

Cancelled

WHO: The proposal does not specify a particular organization or individual.

WHAT: The proposal outlines improvements to a previous referendum, including prioritizing onboarding for Moonbeam, upgrading support tier, doubling ongoing case support hours, tripling training capacity, and increasing investigation licenses.

PRICE/TIMEFRAME/RESOURCES: The proposal does not specify a particular cost or timeframe for implementing the improvements.

Chainalysis analytics solutions on Polkadot Network

VOTE NAY, WRONG PRE-IMAGE

- Some important decisions in a system should not be delegated to others.
- The Root track, Wish for Change track, and Treasurer track are very important and should not be delegated.
- Delegation is good for less important tasks but risky for critical ones.
- Important decisions, like marriage or divorce, should not be handled by someone else.
- This is to protect the system and make sure important decisions are made carefully.
- It’s not about targeting anyone, but about keeping the system safe.

Proposal: Do not allow delegations on Root, Wish for Change, and Treasurer tracks due to their vital importance. Trusting a third party for such critical actions is risky. This is not targeted at DV, but rather to protect the system's integrity. No specific price/timeframe/resources mentioned.

error - vote NAY

### Phala Network Referendum Summary

- **Purpose**: To transfer $PINK tokens from Phala's sovereign account on Polkadot to a sibling account on AssetHub.
- **Background**: Phala received 18,862,885 $PINK tokens from the PINK team, but mistakenly provided the wrong account.
- **Issue**: The sovereign account on AssetHub cannot be controlled directly, so the tokens cannot be moved without a referendum.
- **Solution**: A referendum is needed to move the tokens via XCM from Polkadot.
- **Outcome**: If passed, the tokens will be moved to the correct sibling account.
- **Distribution**: The tokens will be distributed to the Phala community based on a strategy proposed by the community.
- **Community Involvement**: The distribution plan was discussed and approved by the Phala community.
- **Next Steps**: Community members are encouraged to vote on the referendum.

Phala Network proposes a referendum to move $PINK from their sovereign account to their sibling account on AssetHub, to distribute it to their community. The proposal needs a referendum to send an XCM message from Polkadot, and the distribution will follow a strategy proposed by the community.

Proposal for unlocking $PINK from Phala soverign account to sibling account

### Summary of JAM Proposal

- **JAM Protocol**: A decentralized, cryptoeconomic protocol proposed as a potential replacement for the Polkadot Relay-chain.
- **CoreJam**: An early version of the JAM protocol, proposed in Polkadot Fellowship RFC-31.
- **Responsibilities**: If approved, Polkadot Fellows would be responsible for ratifying the final JAM protocol, defining tests, and ensuring compatibility with the Polkadot Relay-chain.
- **Deployment**: The Polkadot Relay-chain would halt when the JAM chain and compatibility service are ready, after professional audits.
- **Remark Call**: Approval of the proposal signals community willingness for JAM supervision by the Technical Fellowship, but no on-chain changes will occur.

Polkadot Fellows propose JAM, a decentralized protocol that could replace Polkadot Relay-chain. The proposal aims to ratify and define conformance and performance tests for the Polkadot JAM Protocol, and develop and deploy a Polkadot-Relay-chain compatibility service on the JAM protocol. The Polkadot Relay-chain should halt when the JAM chain, compatibility service, and required system parachains are ready for launch. The proposal is a remark call, signaling the community's willingness to accept the ratification and supervision of JAM by the Technical Fellowship.

Proposal for JAM Ratification, Conformance, Performance by Polkadot Fellows

whitelisted_caller

wish_for_change

staking_admin

treasurer

lease_admin

fellowship_admin

general_admin

auction_admin

referendum_canceller

referendum_killer

small_tipper

big_tipper

small_spender

medium_spender

big_spender

Referenda Root

Origin able to dispatch a whitelisted call.

Origin for signaling that the network wishes for some change

Origin able to cancel slashes and manage minimum commission.

Origin for spending up to 10,000,000 DOT from the treasury as well as generally administering it.

Origin for managing the composition of the fellowship.

Origin able to spend around 250 DOT from the treasury at once.

Origin able to spend around 1,000 DOT from the treasury at once.

Origin able to spend around 10,000 DOT from the treasury at once.

Origin able to spend around 100,000 DOT from the treasury at once.

Origin able to spend up to 1,000,000 DOT from the treasury at once.

[0] Origin: Root