A significant development has taken place within the Polkadot ecosystem, as the Polkadot DAO has accepted the vote on proposal number 1710, which restricts the supply of DOT coins to 2.1 billion units. The proposal received approval from 81% of participants, marking a shift from an unlimited issuance model to a specific inflation schedule. Following this decision, the DOT coin’s price decreased by 2.2% in the past 24 hours to $4.32, yet it has risen by 9.8% over the past week.
Significant Change in Polkadot’s Supply Model
The new model introduces a two-year inflation period for DOT coins. The previous system allowed an annual production of 120 million new coins with no upper limit on total supply. With the new regulation, it is projected that by 2040, the total supply of this altcoin will be approximately 1.91 billion units. If the old model continued, this quantity would have exceeded 3.4 billion units. This change successfully reduces the coin’s annual increase rate and adopts a more limited supply schedule.
Polkadot DAO functions with a community-based governance model. The OpenGov system, introduced in 2023, allows coin holders to submit, vote on, and delegate their votes on any proposal. This structure enables decisions made within the ecosystem to be shaped by the community.
Current State of DOT Coin’s Price
The restriction on DOT coin’s supply affects its future total amount. Under the new model, the supply will be fixed at 2.1 billion units. Following the decision, CryptoAppsy data indicated that the price of DOT coin decreased by 2.2% to $4.32 in the last 24 hours due to overall market activity, although the altcoin experienced a 9.8% increase over the week.
At the time of writing, DOT’s market capitalization is at $6.6 billion.
