Polkadot DAO, the Community Governing Body of the Polkadot Ecosystem, Has Received Critical Approval! Details Here

The Polkadot DAO, the community governing body of the Polkadot ecosystem, has approved a proposal to cap the $DOT token supply at 2.1 billion. This move would mean lower token production and increased scarcity.

Polkadot Caps $DOT Supply at 2.1 Billion

According to the DAO's announcement, referendum 1710 passed with 81% of the vote. The new model introduces a two-year token inflation schedule, abandoning the current unlimited supply model. The previous system produced approximately 120 million $DOT annually and had no supply cap.

According to Polkadot's post, supply will be around 1.91 billion $DOT by 2040 under the new model. Had the old model continued, that figure was expected to reach 3.4 billion $DOT.

Thanks to the OpenGov system, which Polkadot DAO launched in 2023, token holders can directly submit suggestions, vote, or delegate their voting rights.

Following the decision, the price of $DOT fell 2.4% to $4.24 in the last 24 hours, but rose 9.8% in the last week. The token's total market capitalization stands at $6.6 billion.

*This is not investment advice.