Polkadot DAO Sanctions $2.1 Billion Limit on DOT Supply

Polkadot’s decentralized autonomous organization (DAO) has approved a hard cap on the network’s native token for the first time.

This decision sets the maximum limit at 2.1 billion Polkadot (DOT) tokens, representing a notable shift from the previous tokenomics model, which allowed for the indefinite issuance of new tokens annually. Previously, Polkadot minted approximately 120 million DOT tokens each year, without any cap on the total supply.

The project indicated that the supply could have risen to over 3.4 billion tokens by 2040 under the old system. The new framework will gradually reduce issuance every two years. Currently, Polkadot’s total supply stands at around 1.5 billion tokens.

Polkadot mentioned that issuance reductions will take place every two years on Pi Day, March 14. The project also provided a chart illustrating the supply differences under the new model.

Cointelegraph attempted to contact the Web3 Foundation, the team behind Polkadot, for further details but did not receive a response before publication.

Polkadot initiates capital markets division

This change coincides with Polkadot’s efforts to broaden its appeal to institutional investors. On Aug. 19, the project launched the Polkadot Capital Group, aiming to connect Wall Street firms with its blockchain technology.

The division seeks to bridge traditional finance with Polkadot’s infrastructure, allowing institutions to explore crypto-related opportunities in asset management, banking, venture capital, exchanges, and over-the-counter (OTC) trading.

It will also highlight blockchain applications in decentralized finance (DeFi), staking, and real-world asset (RWA) tokenization.