Polkadot to tighten tokenomics by capping DOT supply at 2.1 billion

Polkadot DAO has passed a proposal to cap the supply of DOT tokens at 2.1 billion, signaling lower emissions and greater scarcity going forward.

In an X post on Sunday, Polkadot DAO confirmed that the referendum 1710 had been passed with 81% in favor. The new model introduces a schedule of a two-year token inflation period.

The measure replaces the current unlimited issuance model, which minted 120 million DOT annually without a supply cap.

"By 2040, supply would be ~1.91 Billion under Ref 1710's model vs ~3.4 Billion under the current 120M/year model," Polkadot said in the post.

Polkadot DAO is a community-led governance system behind the Polkadot ecosystem, and its OpenGov framework, launched in 2023, enables referenda where token holder can submit proposals, cast votes, or delegate their voting power.

DOT's price fell 2.2% in the past 24 hours to $4.32, while it was up 9.8% over the past week, according to The Block's price page . It has a market capitalization of $6.6 billion.