Polkadot DAO has made a significant decision to cap the total number of DOT tokens at 2.1 billion, ending the previous unlimited issuance model.
New Limit and Its Reasons
The policy of the new cap was approved during a vote where 81% of participants supported referendum 1710. The new plan includes a two-year inflation schedule, which will gradually reduce the increase in tokens while maintaining validation incentives.
Comparison with Previous Issuance Model
According to the new system, the total supply is expected to reach about 1.91 billion by 2040. In contrast, the previous model could have inflated the supply to nearly 3.4 billion over the same period, with the new limit aiming to ease inflationary pressure and strengthen the scarcity of the tokens.
Market and Community Impact
The market reacted to the news mixedly, with DOT's price dropping by 2.2% over the past day to $4.32. Despite this, the token is still nearly 10% higher than a week ago. Polkadot remains a significant player in the crypto market with a market capitalization of $6.6 billion.
The Polkadot DAO's decision to cap the issuance of DOT tokens at 2.1 billion marks an important step towards a more sustainable future and increases holder confidence in the network's long-term outlook.
