Key Takeaways
- After 9 years of an unlimited token supply, the maximum amount of DOT tokens will now be capped at 2.1 billion.
- Polkadot is currently targeting institutional adoption through RWA tokenization, DeFi, staking, and other services.
- DOT is trading down 6.28% at $4.18 in the past 24 hours.
Polkadot (DOT) will be capping its supply at 2.1 billion tokens following a significant community vote.
It marks another major step forward for one of Web3’s longest-running projects, which is also now making its bid for institutional adoption.
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Maximum Supply Capped
The Polkadot community has backed a proposal, Referendum 1710 , to cap the token’s supply at 2.1 billion.
Up until now, DOT was operating on an unlimited supply model.
Now, instead of minting 120 million DOT tokens each year, the project will gradually lower issuance until it hits the new limit of 2.1 billion.
More specifically, DOT issuance will be lowered every two years on March 14.
Under the new model, DOT’s supply will be 1.91 billion by 2040, down from an estimated 3.4 billion under the previous model.
Ultimately, this will increase token scarcity, which could also serve to bolster the token in the long term.
It marks a major evolution for the project, which, for the past 9 years, has been working to bring Web3 to life through its many initiatives and innovative technologies.
Recently, it made its first institutional play with the launch of its Capital Group, which intends to bridge traditional finance with Web3 decentralized infrastructure.
It’ll be targeting real-world asset (RWA) tokenization, providing DeFi exposure, staking services, exchange infrastructure, and much more.
Polkadot (DOT) Price
Unfortunately, in the short term, it appears investors aren’t feeling particularly bullish about the news as the DOT token slid 6.28% to $4.18 in the past 24 hours.
Though up 5.72% for the past 30 days, DOT remains on a downward trend, having dropped 7.59% over the past year.
It now commands a market cap of $6.76 billion, ranking it 24th amongst competitors.
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