A significant development has occurred in the Polkadot ecosystem: the DAO approved a proposal to limit the issuance of DOT tokens to 2.1 billion. This decision has already impacted the asset's price.
Significant Changes in Polkadot's Supply Model
The new model introduces a two-year inflation period for DOT tokens. The previous system allowed an annual production of 120 million new tokens with no upper limit on total supply. Under the new regulation, it is projected that by 2040, the total supply of this altcoin will be approximately 1.91 billion units. If the old model continued, this figure would have exceeded 3.4 billion units. This change effectively reduces the annual increase rate of the token and adopts a more limited supply schedule.
Current Price of DOT Token
The restriction on the supply of DOT tokens affects their future total amount. Following the new model, the supply will be fixed at 2.1 billion units. After this decision, data from CryptoAppsy indicated that the price of DOT token decreased by 2.2% to $4.32 in the last 24 hours due to overall market activity, although the altcoin experienced a 9.8% increase over the week. At the time of writing, DOT's market capitalization is at $6.6 billion.
Voting and Governance in the Polkadot Community
The Polkadot DAO operates on a community-based governance model. The OpenGov system, introduced in 2023, allows token holders to submit, vote on, and delegate their votes on any proposal. This structure enables decisions made within the ecosystem to be shaped by the community.
The new measures to limit the issuance of DOT tokens and the implementation of the voting system underscore Polkadot's commitment to stability and effective community governance.
