According to Alice und Bob, the Polkadot community has voted AYE on Referendum 1542 to allocate 5 million DOT to Hydration for liquidity incentives, citing Hydration's strong track record as justification (source: @alice_und_bob, May 16, 2025). This move addresses Polkadot's lagging position in DeFi liquidity, aiming to attract more TVL and enhance ecosystem competitiveness. Traders should note that increased liquidity incentives can drive higher DeFi activity on Polkadot, potentially boosting DOT price action and influencing cross-chain DeFi flows.