- DOT token now capped at 2.1B, ending indefinite issuance.
- Institutional focus via Polkadot Capital Group expands market adoption.
- Short-term price dip may precede long-term scarcity-driven growth.
Polkadot’s decentralized autonomous organization (DAO) has taken a historic step by approving a hard cap on its native DOT token. The decision sets a maximum supply of 2.1 billion tokens, ending years of indefinite annual issuance and marking a major shift in Polkadot’s tokenomics.
End of Inflationary Model
Previously, Polkadot minted roughly 120 million new DOT tokens every year, with no ceiling on total supply. Under that system, analysts estimated that by 2040, DOT could exceed 3.4 billion tokens. The new framework introduces a gradual issuance reduction every two years, starting each Pi Day (March 14). Currently, about 1.5 billion DOT tokens are in circulation. The DAO’s move aims to curb inflation and make the token’s value more predictable for investors.
🚨 DOT supply → capped at 2.1 Billion 🚨
— Polkadot (@Polkadot) September 14, 2025
The Polkadot DAO has signaled support for a hard cap, by passing Referendum 1710 on the “Wish For Change” track, with 81% in favor.
Today ⤵️
→ 1.6 Billion DOT exist
→ 120M DOT/year minted each year
→ No supply cap
What Ref. 1710… pic.twitter.com/OJMtDumAZC
Strategic Move for Institutional Adoption
Polkadot isn’t just adjusting its tokenomics—it’s also expanding into traditional finance. On August 19, the network launched the Polkadot Capital Group, a division focused on connecting institutional investors with its blockchain infrastructure. This initiative will showcase blockchain solutions in areas like decentralized finance (DeFi), staking, real-world asset (RWA) tokenization, and over-the-counter (OTC) trading. The goal is to attract asset managers, banks, and venture capital firms to explore Polkadot’s growing ecosystem.
Short-Term Market Reaction
Despite its long-term potential, the DOT token experienced a short-term dip following the announcement. The price dropped nearly 5%, falling from $4.35 to $4.15. Analysts note that while short-term volatility is expected, the new supply cap could drive scarcity and potentially boost the token’s value over time.
Polkadot’s hard cap introduces a clearer, more sustainable token model, while institutional initiatives signal a push toward broader market adoption. For investors, the changes offer more predictable tokenomics and long-term growth opportunities, balancing supply constraints with the network’s expanding financial infrastructure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
Also Read: Polkadot Proposes $1.9M BTC Diversification Amid 60% DOT Price Drop
