Polkadot has just made a major decision whose long-term impact may not be fully realized.
According to the latest updates from a Polkadot ecosystem developer, the maximum supply of DOT tokens is officially capped at 2.1 billion. Yes, previously there was no limit. This token was inflationary and increased annually. Now, everything has changed.
Polkadot voters back hard cap and gradual inflation cut
This decision was the result of a community referendum, through a proposal called “Hard Pressure.” The result? Around 81% of the vote was in favor. So it wasn’t a single decision, but a unanimous agreement by the network’s voters. From now on, no new DOT can be minted beyond that number.
Furthermore, they not only set a supply limit, but also agreed to begin gradually reducing the inflation rate. The plan is to start in March 2026, with inflation being suppressed every two years.
Simply put, whereas altcoin DOT used to flow freely from the tap, now the tap is being turned on slowly to prevent the flow from going too far.
Funnily enough, this decision wasn’t the only one proposed. Several other proposals were previously considered.
There’s something called “Soft Pressure,” which has a looser cap of 3.14 billion. There’s also “Growth Pressure,” which also proposes a cap of 2.1 billion, but with different yield settings and inflation discounts.
But the community seems quite settled on a stricter approach.
So, why is this important? On the other hand, a decision like this could change the perception of DOT. It’s not just about the limited supply, but also about how its long-term value is viewed.
When supply can no longer be increased arbitrarily, DOT could be perceived as more “scarce,” and as we know, scarcity often makes the market more attractive.
However, there are consequences. Because inflation is lowered, it means stakers’ returns could also decrease. For some people staking DOT, this could be a new consideration. Should they continue staking for yield, or move on to other opportunities? Not everyone will necessarily make the same decision.
Moreover, what’s interesting is how the community can reach such a major decision through an open governance mechanism.
Polkadot is known for its unique approach to governance, and this is a testament to that. They’re not just creating advanced features, but also implementing a democratic system that truly listens to stakeholders.
Judging by trends in other blockchain projects, supply capping isn’t new. But the way Polkadot is doing it, with community consensus and gradual inflation, makes it worth paying attention to. The market may not immediately react with excitement, but long-term sentiment could shift dramatically.