The Polkadot DAO has passed a landmark proposal to cap DOT token supply at 2.1 billion, a shift from its previously unlimited model. Referendum 1710, voted in favor by 81% of participants, will decrease the rate of new issuance every two years starting March 14, also known as Pi Day. This mechanism will gradually reduce inflationary pressure and enhance scarcity.
Polkadot estimates the new supply cap will keep total tokens near 1.9 billion, compared to the 3.4 billion it would have reached otherwise. Currently, 120 million DOT enter circulation annually, pushing supply to 1.61 billion. This inflationary trend has weighed on market performance, with DOT struggling to break $4.60 recently despite a market cap of $7.03 billion.
While the change is seen as a strong long-term value driver, immediate price action has been muted. The 2.1 billion cap is viewed by the community as a crucial step in aligning Polkadot with sustainable tokenomics.
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