TLDR
- The Polkadot community has approved Referendum 1710 with 81 percent support.
- The vote introduces a permanent supply cap of 2.1 billion DOT tokens.
- Polkadot previously had no maximum supply and issued 120 million tokens annually.
- The new model will gradually reduce issuance starting from March next year.
- By 2040, total supply is expected to reach around 1.91 billion DOT tokens.
Polkadot will permanently cap its total supply at 2.1 billion DOT tokens following the approval of Referendum 1710. The community-backed decision received overwhelming support, with over 81% of votes favoring the proposal. This marks a pivotal shift in Polkadot’s tokenomics, targeting controlled issuance and long-term predictability.
Polkadot Sets Supply Cap at 2.1B
Polkadot previously had no maximum token supply, with 120 million DOT tokens issued annually. This inflationary model supported staking rewards and ensured network security over time. However, the new decision introduces a capped model to align with deflationary trends.
🚨 DOT supply → capped at 2.1 Billion 🚨
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 capWhat Ref. 1710… pic.twitter.com/OJMtDumAZC
— Polkadot (@Polkadot) September 14, 2025
The community’s vote on Referendum 1710 formalized the hard cap, replacing indefinite issuance with a gradual tapering mechanism. The current circulating supply of Polkadot stands near 1.6 billion tokens. Under the revised model, issuance will slow until the total supply reaches 2.1 billion.
The Polkadot team projects supply will reach approximately 1.91 billion by 2040 under the new framework. In contrast, the previous approach would have raised supply to 3.4 billion by that time. The change aims to reduce inflation and strengthen Polkadot’s investment profile.
Long-Term Model and Issuance Reduction
Polkadot will implement the supply reduction model beginning March next year. Instead of minting 120 million tokens annually, the project will gradually decrease issuance over time. This transition will continue until the hard cap is reached.
The mechanism is designed to reinforce scarcity while maintaining network stability. Polkadot will now shift toward a controlled issuance strategy, common in other top-tier digital assets. The move aligns DOT with the principles that support predictable growth and reduced sell pressure.
By limiting future supply, Polkadot anticipates less downward pressure from staking rewards. This development is expected to boost confidence in its economic model. A Polkadot representative emphasized the change will “strengthen value predictability and investor trust.”
DOT Price Outlook and Market Reaction
Polkadot traded at $4.36 following a 10% weekly gain ahead of the announcement. The altcoin showed signs of consolidation but remains supported by broader altseason sentiment. Analysts link the hard cap decision to long-term bullish trends.
Projects with fixed supply often benefit from increased investor confidence. Bitcoin, for instance, has long relied on its capped model for value retention. A crypto analyst stated, “Scarcity drives conviction Polkadot’s cap positions it for stronger adoption cycles.”
With inflation pressure easing, Polkadot may experience improved market dynamics in the next cycle. Its community-led governance model continues to shape future supply paths. Many now regard Polkadot’s capped model as a strategic milestone for long-term growth.
