Polkadot Approves DOT Token Cap Amid Market Decline
- Polkadot’s DOT token fell nearly 5% in the last 24 hours.
- The community approved the “Wish for Change” proposal, setting a hard cap of 2.1 billion DOT.
- Currently, around 1.6 billion tokens are in circulation, representing 76% of the total supply.
- A new inflation schedule will start on March 14, 2026, tapering issuance over two years.
- By 2040, Polkadot estimates approximately 1.91 billion DOT will be in circulation.
- The asset has lost about 34% of its value since the beginning of the year.
The governance changes aim to stabilize Polkadot’s long-term economic design by introducing scarcity and reducing reliance on inflationary funding mechanisms. These adjustments come as Polkadot seeks to enhance its competitive position against rivals like Ethereum.
Despite these significant changes, including a capped supply and a new inflation model, DOT’s recent performance remains negative with a decline of nearly 5%. (Source)
