81% of Polkadot DAO Votes DOT emission is limited to 2,1 billion tokens

Recently DAO Polkadot approved a proposal to limit the supply of DOT tokens to 2,1 billion, which had not been capped until now. The proposal was included in the 1710 referendum on the topic «Desire for Change» and received 81% of the votes in favor.

In an official statement, the team Polkadot announced that the rate of new DOT tokens will be reduced every two years on March 14 (Pi Day). This could lead to increased scarcity in the market.

It is also noted that without the passage of this important proposal, DOT’s offer would have been $3,4 billion.

Previous consensus model Polkadot assumed the annual addition of 120 million DOTs to the circulation. This formed the current supply of 1,61 billion DOTs. At the same time, the demand for tokens is small, so such an active emission negatively affects the market price of the token.

CoinGecko Data

DOT is currently trading around $4,21, with a market cap of $7,03 billion. Despite the significance of Referendum 1710, DOT’s price has been lackluster, barely breaking $4,6 last week.

Blockchain Polkadot was launched in May 2020 and gained a lot of popularity in its first months of existence due to its focus on parachain architecture. It was founded by one of the founders Ethereum Gavin Wood.

Over time, interest in Polkadot has decreased significantly. Its native token DOT, which peaked at $55 in November 2021, is currently down 92%.

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