Polkadot Caps DOT Supply at 2.1 Billion After Vote

• Polkadot introduced a permanent supply cap of 2.1 billion DOT through Referendum 1710.
• The new model will gradually reduce token issuance, targeting 1.91 billion supply by 2040.
• DOT price consolidates near $4.40, with resistance at $4.58 and support around $4.24.

Polkadot’s community has voted to cap DOT supply at 2.1 billion tokens after passing Referendum #1710 with 81% support. The change marks the end of Polkadot’s inflationary model and aligns the network with scarcity-driven economics that have supported long-term value in assets like Bitcoin.

DOT traded around $4.20 following the decision, up nearly 5% on the week, according to CoinMarketCap. With a market cap of about $7 billion, Polkadot ranks 24th among digital assets..

A Shift Away From Unlimited Inflation

Under the old model, Polkadot minted roughly 120 million new tokens each year to pay staking rewards and secure the network. Critics long argued that this unlimited issuance made DOT less attractive compared to capped-supply competitors.

The new framework will kick in March 2026, reducing issuance every two years until the cap is reached. By 2040, supply is projected to settle near 1.91 billion tokens, instead of the 3.4 billion that would have been created under the old rules.

Why This Matters for Investors

The shift gives Polkadot a stronger investment case. For years, DOT lagged rivals like Solana and Tron, even though the technology has strong potential. With inflation no longer eroding value, DOT can be seen less as a utility token and more as a scarcity-backed asset.

Related: A Look at How Two Top Blockchains, Cardano and Polkadot, Plan to Build on Top of Bitcoin

Meanwhile, Polkadot is rolling out broader upgrades. Polkadot 2.0 eliminated the costly parachain auction system, opening the door for faster app launches. Looking ahead, the JAM (Join-Accumulate Machine) upgrade expected in 2026 will reduce reliance on the Relay Chain and introduce multiple parallel cores, giving the network greater throughput and efficiency. 

DOT Price Analysis: Market Reaction and Targets

As per the chart below, DOT is consolidating near $4.4 after pulling back from recent highs. The token recently slipped from a rising wedge formation, a bearish technical pattern, and is now moving within a falling channel inside the Bollinger Bands.

If buying strength returns, a breakout above $4.58 could open the door for further gains toward $4.80 and potentially $5.00, while failure to clear resistance may result in renewed downside pressure toward $4.24 or even the $4 mark. 

The Relative Strength Index currently sits in neutral territory around 55, and the MACD suggests short-term caution as it flirts with a bearish crossover.

Related: Gavin Wood’s Polkadot 2.0 Vision Is Ready but Will the Market Catch Up