Polkadot Locks DOT Supply at 2.1B — Ending Inflationary Model for Good

Polkadot Decentralized Autonomous Organization (DAO) has approved a tough cap of two.1 billion for its native token, DOT, following the passage of Referendum 1710, transferring away from an inflationary mannequin with no cap.

DOT provide → capped at 2.1 Billion

The Polkadot DAO has signaled assist for a tough cap, by passing Referendum 1710 on the “Wish For Change” monitor, with 81% in favor.

Today

→ 1.6 Billion DOT exist
→ 120M DOT/12 months minted every year
→ No provide cap

What Ref. 1710… pic.twitter.com/OJMtDumAZC

— Polkadot (@Polkadot) September 14, 2025

The measure was launched on Polkadot’s “Wish for Change” monitor, a governance course of designed to seize neighborhood sentiment on proposed updates. It obtained 81% approval, signaling broad consensus amongst contributors.

Polkadot founder Gavin Wood earlier proposed shifting from the Nominated Proof-of-Stake system to a Proof-of-Personhood mannequin.Among the notable modifications within the method was transferring Polkadot towards store-of-value properties with a proposed 3.14 billion DOT provide cap.

Notably, this approval got here on the backdrop of Polkadot broadening its institutional focus with the launch of Polkadot Capital Group on Aug. 19, a division created to hyperlink Wall Street companies with its blockchain infrastructure.

The initiative seeks to assist conventional finance gamers discover alternatives in asset administration, banking, enterprise capital, exchanges, and OTC buying and selling whereas highlighting use circumstances reminiscent of DeFi, staking, and real-world asset tokenization.

Polkadot’s Current Cap at 1.6B DOT because it Shifts from Inflationary Model to Scarcity Framework

Currently, the overall circulating provide of DOT stands at 1.6 billion. Until now, Polkadot minted 120 million DOT every year, with no most provide restrict. This meant that if the issuance mannequin continued, provide would have grown to round 3.4 billion tokens by 2040 and over 5 billion by 2052.

This inflationary framework raised long-term considerations for holders and builders, as predictable shortage is a key characteristic for many blockchain ecosystems. The newly adopted mannequin introduces a strict restrict of two.1 billion DOT. Issuance will decline in mounted steps each two years on March 14, also called Pi Day.

A chart launched by Polkadot reveals that annual issuance will drop from 120 million in 2025 to beneath 20 million by the early 2030s. By 2040, issuance will likely be minimal, and the overall provide is projected to stabilize close to 1.91 billion tokens.

The mounted discount mechanism prevents unchecked progress and aligns incentives between token holders and the community. Polkadot described the end result as “shortage, predictability, and long-term alignment.”

By implementing a tough cap, Polkadot joins a gaggle of blockchain networks that prohibit provide progress to strengthen financial sustainability. Bitcoin, for instance, reduces issuance by way of programmed halving occasions, whereas Polkadot’s method applies stepwise reductions on a set schedule.

The change could alter how DOT is perceived out there. Investors and builders typically weigh token provide constructions when assessing the soundness and potential worth of a community. With predictable issuance and a capped provide, DOT now provides clearer financial coverage indicators than earlier than.

How Will Capped Supply Affect Polkadot?

As of this press time, DOT trades at $4.18, a 4.6% drop up to now day, decreasing its rally up to now week to three.9%. The technical sample suggests the token bottomed at $3.02 in June earlier than reaching a $4.5 high earlier this month.

Technical indicators such because the RSI and MACD signaled bullish divergences earlier than DOT’s breakout, with each persevering with to rise afterward. Chart evaluation additionally reveals the token has been climbing alongside an ascending assist line since its all-time low, forming an ascending triangle with resistance at $4.56, a sample typically linked to bullish momentum.

Source: TradingView

If this setup performs out, DOT might climb towards $6.30, the midpoint of its present vary. How the value reacts at that degree will likely be key in figuring out whether or not it has the energy to push increased towards the long-term resistance close to $11.

Notably, analysts are significantly bullish on the token. In a post on X, a crypto analyst famous DOT holds robust at $3.60 assist, bouncing for the fourth time in its multi-year vary. A rebound might push it towards $13, a possible 230% upside. The analyst famous that $3.60 is the important thing degree to observe for a possible upside. However, a commerce beneath $3.40 will invalidate the setup.

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