Polkadot DAO has made an important decision to cap the issuance of DOT tokens, which is expected to impact the market and the project's long-term prospects.
Referendum 1710 and Its Results
The Polkadot DAO has recently approved a proposal to limit the DOT token supply at 2.1 billion. This decision was part of Referendum 1710, which received 81% votes in favor. Polkadot officially announced this in a post on X, noting that the rate of new DOT issuance will decrease every two years starting on March 14 (Pi Day).
Impact on Long-term Perspectives
The Polkadot team noted that as a result of this cap, the total number of DOT tokens will be nearly 1.9 billion. This is significantly lower than the 3.4 billion that would have been the case without the upgrade. A user on X remarked on the importance of this initiative, as it may increase the long-term value of the token.
General Decline in Interest in Polkadot
Polkadot, launched in May 2020, had previously gained significant attention due to its parachain architecture and co-founder Gavin Wood. However, interest in the project has diminished, and its DOT token, which peaked at $55 in November 2021, has now fallen by 92% and trades around $4.34.
This cap on the issuance of tokens may influence the DOT market and its future development, as increasing token scarcity could help stabilize its value.
