Polkadot DAO approves 2.1B token cap on DOT supply in tokenomics shift
Polkadot said that under the old tokenomics model, the total supply of DOT could have swelled to more than 3.4 billion tokens by 2040.
Polkadot’s decentralized autonomous organization (DAO) passed a referendum approving a hard cap on the network’s native token for the first time.
The decision set the maximum supply at 2.1 billion Polkadot (DOT) tokens, a significant pivot from the previous tokenomics model, under which new tokens were indefinitely issued yearly. Under the old inflationary model, Polkadot minted about 120 million DOT tokens annually, with no limit on the token’s total supply.
The project said the supply could have swelled to more than 3.4 billion tokens by 2040 under the old model. The new framework introduces a gradual issuance reduction every two years. At the time of writing, Polkadot had a total supply of about 1.5 billion tokens.
