974

This proposal funds the redemption of the corrupted DOT.pica variant within the DOT Alloy to restore trading functionality and protect the integrity of DOT representation on Osmosis.

Background

In [Hidden link], the DOT.pica variant was identified as corrupted and removed from active trading. At the time, this was considered a precautionary measure, as the Picasso bridge appeared functional on the backend. However, it has since become clear that redemption is not possible, and DOT.pica has remained within the [Hidden link] as a corrupted asset.

Unlike SOL.pica and USDT.pica, which were fully removed, DOT.pica still constitutes the majority (72%) of the Alloy. This has impaired the DOT Alloy, reducing liquidity and undermining confidence in DOT trading on Osmosis, resulting in the markets disappearing.

As Picasso has not resumed functionality or provided a redemption mechanism, direct action is required to restore Alloy functionality for DOT holders.

Proposal

The Osmosis community pool will provide funding in USDC to:

• Redeem the corrupted DOT.pica within the DOT Alloy with DOT.glmr.axl.
• Assume the loss associated with this redemption. This may be temporary if Picasso later enables redemption, or permanent if not.

Execution will be carried out by the [Hidden link], which will hold the redeemed DOT.pica until a resolution is found.

This action will:

• Restore full trading functionality for DOT within the Alloy.
• Ensure DOT remains a reliable and usable asset on Osmosis.
• Rebuild confidence in the Alloy mechanism for users.

It is important to note that this proposal applies only to DOT.pica held within the DOT Alloy. DOT.pica held externally on Osmosis remains Picasso’s responsibility to redeem.

Funding

• Remaining corrupted DOT.pica in the Alloy: 3,064.5 DOT.pica ([Hidden link]).
• Equivalent DOT buyout cost: 12,000 USDC at current DOT prices.
• Proposed allocation: 14,200 USDC, including a buffer based on DOT’s highest price in the last month.
• Any unused USDC will be returned to the community pool following redemption.

Forum Post: [Hidden link]