Polkadot caps DOT supply at 2.1 billion amid landmark shift

Polkadot’s DOT token slid almost 5% prior to now 24 hours, regardless of the community’s group approving a landmark governance proposal that reshapes its tokenomics.

On Sept. 14, the staff confirmed through X that the group had handed the “Want for Change” proposal, which units a tough cap of two.1 billion DOT.

The transfer ends Polkadot’s open-ended issuance mannequin, which generated roughly 120 million new tokens yearly.

Presently, round 1.6 billion tokens are in circulation, that means greater than three-quarters, or 76%, of the eventual provide has already been minted.

Polkadot stated it goals to stabilize its long-term financial design by introducing shortage and winding down inflation as a funding mechanism. The change highlights a broader effort to scale back dependence on perpetual issuance and push the ecosystem towards different income streams.

DOT’s new inflation schedule

The brand new framework introduces a stepped-down inflation schedule starting March 14, 2026. Beneath the revised mannequin, token issuance will taper over a two-year adjustment interval.

Polkadot estimates that about 1.91 billion DOT will likely be in circulation by 2040, which is much under the three.4 billion projected underneath the previous system. The ultimate cap is anticipated to be reached across the yr 2160.

To handle this course of, the proposal outlines three schedules for lowering inflationary stress. One possibility instantly cuts emissions by greater than half earlier than easing off, whereas one other applies sharper early reductions adopted by a gradual decline by means of the subsequent century.

Polkadot’s ecosystem modifications

The governance overhaul arrives as Polkadot works to strengthen its place towards rivals like Ethereum by means of initiatives reminiscent of Polkadot Capital Group, which seeks to bridge conventional finance.

It additionally coincides with the return of co-founder Gavin Wooden as CEO of Parity Applied sciences, the blockchain community’s improvement arm.

But these strikes have didn’t halt the token’s slide.

At press time, DOT trades at roughly $4.20, based on CryptoSlate knowledge, marking a recent 24-hour decline of almost 5%.

The drop compounds a broader downturn, with the asset dropping about 34% of its worth for the reason that begin of the yr.

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