Polkadot’s decentralized autonomous organization (DAO) has approved a referendum that introduces—for the first time—a strict cap on the supply of its native token, DOT.
The maximum supply is now locked at 2.1 billion tokens, marking a major shift from the previous tokenomics structure, where new DOT tokens were issued without limit each year. Previously, around 120 million new tokens were minted annually under Polkadot’s inflationary model, with no ceiling on the total supply.
If that framework had continued, projections showed DOT’s supply could have exceeded 3.4 billion by 2040. The newly adopted model instead implements a gradual reduction in issuance every two years, beginning on March 14 (Pi Day). At present, the circulating supply sits near 1.5 billion DOT. Polkadot also released a chart highlighting how the capped model differs from the older system.
Polkadot Expands Toward Institutional Investors
This tokenomics update comes as Polkadot strengthens its push into traditional finance. On August 19, the network launched Polkadot Capital Group—a new unit designed to act as a bridge between Wall Street institutions and its blockchain ecosystem.
The division will focus on connecting banks, asset managers, venture capital firms, exchanges, and OTC trading desks with Polkadot’s infrastructure. It will also showcase blockchain applications in decentralized finance (DeFi), staking, and real-world asset (RWA) tokenization.
Price Reaction and Long-Term Outlook
Despite the long-term vision, the immediate market response has been muted. Following the announcement, DOT’s price slipped from $4.35 to around $4.15, reflecting a decline of nearly 5%.
Analysts suggest that the hard cap could create long-term scarcity for DOT and ease inflationary pressures, potentially giving the token a more stable and predictable value trajectory for investors.
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