Polkadot's decentralized autonomous organization (DAO) has enacted a historic change to the network's tokenomics by approving Referendum 1710, which implements a hard cap of 2.1 billion DOT tokens. The proposal passed with overwhelming community support, receiving 81% approval from voters.
This decision marks a fundamental shift from Polkadot's previous inflationary model, which had no supply cap and produced approximately 120 million new DOT tokens annually. Under the new model, the total supply will be capped at 2.1 billion, with projections showing supply reaching approximately 1.91 billion DOT by 2040. Had the old model continued, supply was expected to reach 3.4 billion DOT by that time.
The implementation occurred through Polkadot's OpenGov system and the "Wish For Change" track, representing one of the most significant governance decisions in the network's history. A Polkadot DAO Community Steward commented: "The DOT supply cap is not just a technical setting—it is a signal to investors and builders that predictable scarcity is now a foundational trait of our network."
The change introduces a two-year token inflation schedule before fully transitioning to the capped model. This move aligns Polkadot with established cryptocurrencies like Bitcoin and Litecoin that have historically benefited from fixed supply strategies. However, the new supply cap is expected to reduce staking rewards for investors over time as annual token issuance decreases.
Following the announcement, DOT's price showed mixed reactions—falling 2.4% to $4.24 in the 24 hours after the decision, but maintaining a 9.8% gain over the previous week. The token's total market capitalization stands at approximately $6.6 billion.