Polkadot’s DOT token has experienced a nearly 5% decrease in value over the past 24 hours, despite the approval of a significant governance proposal that will reshape its tokenomics. The community recently passed the “Wish for Change” proposal, which establishes a hard cap of 2.1 billion DOT tokens. This decision marks the end of Polkadot’s open-ended issuance model, which previously led to the creation of approximately 120 million new tokens each year.
With around 1.6 billion tokens currently in circulation, more than three-quarters (76%) of the total supply has already been minted. The goal of implementing this new cap is to bring stability to Polkadot’s long-term economic design by introducing scarcity and reducing inflation as a funding mechanism. This change reflects a broader effort to move away from perpetual issuance and explore alternative revenue streams within the ecosystem.
As part of the new framework, a revised inflation schedule will be introduced starting on March 14, 2026. Token issuance will gradually decrease over a two-year adjustment period, leading to an estimated circulation of 1.91 billion DOT tokens by 2040, significantly lower than the projected 3.4 billion under the previous system. The final cap is expected to be reached around the year 2160.
To manage this transition, the proposal outlines three different schedules for reducing inflationary pressure. One schedule involves an immediate emission cut of more than half, followed by a gradual decline, while another schedule includes sharper early reductions and a gradual decrease over the next century.
Polkadot’s governance changes come at a time when the network is focused on strengthening its position in the market, particularly against competitors like Ethereum. Initiatives such as the Polkadot Capital Group, which aims to bridge traditional finance with blockchain technology, are part of this strategic push. Additionally, the recent appointment of co-founder Gavin Wood as CEO of Parity Technologies, the development arm of Polkadot, underscores the network’s commitment to growth and innovation.
Despite these positive developments, the value of the DOT token has continued to decline. At the time of writing, DOT is trading at around $4.20, representing a 5% decrease in the past 24 hours. This drop adds to a broader downturn for the asset, which has lost approximately 34% of its value since the beginning of the year.
Overall, Polkadot’s governance changes and ecosystem improvements signal a commitment to long-term sustainability and growth. As the network continues to evolve and adapt to market dynamics, investors and users alike will be closely watching to see how these changes impact the future trajectory of Polkadot and its native token, DOT.