CMC News

$DOT Supply Cap Set at 2.1 Billion Tokens

#Polkadot's governance community approved a landmark proposal capping $DOT token supply at 2.1 billion units. The decision passed through referendum 1710 with an overwhelming 81% support from token holders.

The new framework replaces Polkadot's previous unlimited issuance model that created 120 million $DOT tokens annually. Community members implemented a structured two-year inflation schedule under the approved changes.

#Polkadot officials project significant supply differences by 2040 under the new system. The capped model would result in approximately 1.91 billion tokens compared to 3.4 billion under the previous unlimited minting.

The #DAO governance system enables community-driven decisions through its OpenGov framework, launched in 2023. Token holders can submit proposals, cast votes, or delegate their voting power through the decentralized system.

$DOT experienced a 2.2% price decline over 24 hours, trading at $4.32 following the announcement. However, the token gained 9.8% over the previous week despite the recent dip.

The cryptocurrency maintains a market capitalization of $6.6 billion amid ongoing tokenomics adjustments. Market participants anticipate that reduced emission rates will create greater token scarcity over time.

#Tokenomics reforms aim to establish more sustainable long-term value propositions for ecosystem participants. The community-approved changes represent a shift toward deflationary mechanics within Polkadot's economic model.