Polkadot Proposal Seeks to Shift Growth Strategy to On-Chain Incentives

The Polkadot Community Foundation has submitted a governance proposal that would make individual user acquisition the network’s immediate growth priority, shifting emphasis away from ecosystem size and total value locked while favoring direct, on-chain incentives.

Referendum 1954, titled “DOT DAO Strategy Mandate,” was still in preparation and awaiting a decision deposit when checked on Oct. 13, 2026. Its strategy therefore had not been adopted.

The proposal would distribute rewards through on-chain logic rather than third-party entities, with an algorithmic limit for each person. It does not specify the algorithms, user-verification process or individual caps. The plan also allows targeted communications initiatives and participation by outside ecosystem entities, so it would not eliminate marketing or communications activity.

“This proposal aims to establish the binding strategic direction for DOT DAO,” the referendum says. It describes the incentives as distinct from previous marketing spending and says the specific algorithms are outside the scope of the mandate.

The strategy also includes a broader Polkadot Product Platform covering functions such as data storage, logistics, signaling, referencing and user interfaces. Applications would combine features associated with Web2, including free tiers, mobile-first access and non-cryptographic names, with Web3 characteristics such as self-sovereignty, privacy and zero-logins.

Stablecoins are another part of the plan. The mandate calls for permissionless “dotStables,” described as stable-value derivatives backed by DOT, with demand for those products intended to create demand for DOT. One DOT-backed implementation would receive DAO support and priority, with dotUSD favored as the primary currency where a single currency is needed.

The proposal builds on separate governance plans for dotUSD. Referendum 1944 was marked “Executed” when checked, with a displayed tally of 98.5% Aye votes and 1.5% Nay votes, representing approximately 4.63 million DOT in support and 70,810 DOT against.

Its first phase allows users to mint dotUSD one-to-one against USDT, subject to a cap. A later phase is intended to add DOT collateral, an oracle, stability-pool functions, liquidations and redemptions. The referendum proposed using $2.5 million in USDT for dotUSD issuance and allocating $2.5 million in DOT to an initial DOT-dotUSD liquidity pool.

That means the initial dotUSD phase relies on USDT rather than the DOT-collateralized vault system planned for the later design. The proposed shift toward user incentives and product adoption remains tied to a DOT-backed stablecoin structure whose full version is planned for a later phase.

The proposal follows earlier governance developments involving Polkadot’s annual issuance policy and dotUSD. Referendum 1954 is a strategic “Wish For Change” proposal, rather than a technical specification that would directly deploy an incentive contract or product.