The Polkadot governance community has voted to limit the total supply of DOT tokens to 2.1 billion, altering the issuance and tokenomics principles of the ecosystem.
Changes in Polkadot Tokenomics
In the recent vote on Referendum 1710, the Polkadot community approved a hard cap on the total DOT token supply at 2.1 billion, with approximately 81% of participants in favor. Previously, about 1.6 billion DOT were in circulation, and without these changes, the supply could have exceeded 3.4 billion by 2040.
New Token Issuance Model
With the enactment of Referendum 1710, DOT tokens will be issued under a new model, where emissions decline every two years. This schedule will coincide with Pi Day on March 14. Such a model will ensure a more predictable and capped growth of the DOT supply.
Market and Forecasts
In the past 24 hours, DOT's price has dropped by 1.72%, despite gaining 8.20% over the week. Currently, it is trading at $4.34 and trading volume has reduced by 40% to around $273 million. A market analyst highlighted that the price potential could reach +230%, noting that the current setup may surprise many.
The changes in Polkadot's tokenomics aim to make the token's supply more predictable and limited, which could impact its long-term value and attractiveness to investors.
