Polkadot DAO approves 2.1B token cap on DOT provide in tokenomics shift

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 major pivot from the earlier tokenomics mannequin, below which new tokens have been indefinitely issued yearly. Below the previous inflationary mannequin, Polkadot minted about 120 million DOT tokens yearly, with no restrict on the token’s whole provide. 

The undertaking stated the availability may have swelled to greater than 3.4 billion tokens by 2040 below the previous mannequin. The brand new framework introduces a gradual issuance discount each two years. On the time of writing, Polkadot had a complete provide 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 undertaking 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 info, however didn’t obtain a response by publication.

Polkadot launches capital markets division 

The change comes as Polkadot strikes to develop its attain with institutional buyers. On Aug. 19, the undertaking launched the Polkadot Capital Group, a brand new division designed to attach Wall Avenue companies 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’s going to additionally showcase blockchain use circumstances like decentralized finance (DeFi), staking and real-world asset (RWA) tokenization.