In a landmark decision, the Polkadot decentralized autonomous organization (DAO) has ratified a proposal to implement a fixed supply cap of 2.1 billion DOT tokens, marking a significant shift in the network’s economic model. The governance-approved change addresses previous inflationary concerns by establishing a definitive upper limit on the total token supply. Under the legacy tokenomics structure, projections indicated that the DOT supply could have expanded to over 3.4 billion tokens by the year 2040. This new cap introduces a deflationary mechanism, fundamentally altering the long-term emission schedule and value proposition of the native asset. The move is widely seen as a strategic effort to enhance scarcity and potentially increase token valuation over time, aligning with principles seen in hard-capped cryptocurrencies. This governance action underscores the power of Polkadot’s on-chain community to enact substantial protocol changes and refine its economic policy in pursuit of sustainable growth and stability.
