Polkadot’s DOT token experienced a decrease of nearly 5% in the last 24 hours, despite the approval of a significant governance proposal by the network’s community that alters its tokenomics.
On September 14, the team confirmed through X that the community had passed the “Wish for Change” proposal, which establishes a hard cap of 2.1 billion DOT.
This decision marks the end of Polkadot’s open-ended issuance model, which previously resulted in approximately 120 million new tokens being created annually.
Currently, more than three-quarters, or 76%, of the eventual supply has already been minted, with approximately 1.6 billion tokens currently in circulation.
Polkadot’s objective with these changes is to create a stable long-term economic design by introducing scarcity and reducing inflation as a funding mechanism. This shift signifies a broader effort to decrease reliance on perpetual issuance and encourage the ecosystem towards alternative revenue sources.
DOT’s Revised Inflation Schedule
The new framework introduces a gradual inflation schedule starting on March 14, 2026. According to the updated model, token issuance will decrease over a two-year adjustment period.
Polkadot estimates that by 2040, approximately 1.91 billion DOT will be in circulation, a significant decrease from the 3.4 billion projected under the previous system. The final cap is anticipated to be reached around the year 2160.
To manage this process effectively, the proposal outlines three schedules for reducing inflationary pressure. One option involves an immediate emission cut of over half before gradually decreasing, while another proposes sharper reductions initially followed by a more gradual decline over the next century.
Changes in Polkadot’s Ecosystem
The governance restructuring comes as Polkadot strives to enhance its position against competitors like Ethereum through initiatives such as the Polkadot Capital Group, which aims to bridge traditional finance with blockchain.
This development coincides with the return of co-founder Gavin Wood as the CEO of Parity Technologies, the blockchain network’s development entity.
Despite these efforts, the token’s value continues to decline.
At the current moment, DOT is trading at approximately $4.20, according to CryptoSlate data, reflecting a recent 24-hour decrease of nearly 5%.
This decline adds to the broader downturn, with the asset losing approximately 34% of its value since the beginning of the year.
