Catenaa, Thursday, September 18, 2025-Polkadot DAO has approved a proposal to cap DOT token supply at 2.1 billion, ending the network’s previous unlimited issuance of 120 million DOT annually.
The measure passed with 81% support under referendum 1710.
The new model introduces a two-year inflation schedule. Under this system, total supply is projected to reach 1.91 billion by 2040, compared with 3.4 billion under the previous unlimited issuance model.
Polkadot DAO, a community-led governance system, allows token holders to propose changes, vote directly, or delegate voting power through its OpenGov framework launched in 2023.
DOT’s price fell 2.2% in the past 24 hours to $4.32, though it gained nearly 9.8% over the past week. The token’s market capitalization currently stands at $6.6 billion. Analysts said the capped supply could create scarcity over time, potentially influencing long-term value while reducing emissions of new tokens into the market.
The referendum signals a significant shift in Polkadot’s tokenomics, emphasizing sustainability and community-led governance as the network matures. The DAO framework ensures stakeholders continue to have a direct role in shaping policies affecting the ecosystem.
