Polkadot DAO Approves 2.1B Hard Cap on DOT Supply

Polkadot’s decentralized autonomous group (DAO) handed a referendum approving a tough cap on the community’s native token for the primary time. 

The choice set the utmost provide at 2.1 billion Polkadot (DOT) tokens, a big pivot from the earlier tokenomics mannequin, below which new tokens had been indefinitely issued yearly. Beneath the outdated inflationary mannequin, Polkadot minted about 120 million DOT tokens yearly, with no restrict on the token’s complete provide. 

The mission mentioned the provision may have swelled to greater than 3.4 billion tokens by 2040 below the outdated mannequin. The brand new framework introduces a gradual issuance discount each two years. On the time of writing, Polkadot had a total supply of about 1.5 billion tokens. 

In keeping with Polkadot, the issuance discount will occur each two years on Pi Day, which is March 14. The mission additionally shared a chart, demonstrating the distinction in provide below its new mannequin. 

Cointelegraph reached out to the Web3 Basis, the group behind Polkadot, for extra data, however didn’t obtain a response by publication.

Polkadot launches capital markets division 

The change comes as Polkadot strikes to broaden its attain with institutional traders. On Aug. 19, the mission launched the Polkadot Capital Group, a brand new division designed to attach Wall Avenue corporations with its blockchain infrastructure.

The division goals to attach conventional finance gamers with Polkadot’s blockchain infrastructure to assist establishments discover crypto-related alternatives in areas like asset administration, banking, enterprise capital, exchanges and over-the-counter (OTC) buying and selling. 

It’ll additionally showcase blockchain use instances like decentralized finance (DeFi), staking and real-world asset (RWA) tokenization.