Still three proposals!
1. First: Hard Pressure
🔹 Total supply limit: 2.1 billion DOT
🔹 Inflation cycle: Reduce the remaining issuance by 13.14% every 2 years
🔹 First adjustment: March 14, 2026
🔹 Expected peak: Year 2160
This means that on March 14, 2026, we will directly reduce inflation by 53.6% (50% during the off-chain proposal):
- This directly reduces inflation to 3.111% (3.34% during the off-chain proposal)
- Staking yield drops to 5.6% (7% during the off-chain proposal)
Additionally, to maintain network expenses of $450 million, DOT needs to reach the market value of SUI in 2026 (i.e., DOT price reaching over $10), catch up with ADA in 2030, and SOL in 2038.
If annual expenses drop to $90 million: can last until 2031, catch up with LINK in 2037, and SOL in 2049.
Vote here: polkadot.subsquare.io/referenda/1710
2. The 2nd proposal: Growth Pressure
🔹 Total supply limit: 2.1 billion DOT
🔹 Inflation cycle: Stepwise reduction every two years, inflation -33%, staking rewards -50%
🔹 First adjustment: March 14, 2026
🔹 Excess DOT → Deposit into the incentive pool for parallel chain economic growth incentives
This proposal means that on March 14, 2026, DOT inflation will drop to 5.03%, and staking yield will be approximately 7.8%. However, if reduced by 50%, the actual staking yield will be 3.9%, with another 3.9% (approximately 34 million DOT, currently worth about $130 million) used for economic growth incentives!
Vote here: polkadot.subsquare.io/referenda/1711
3. The 3rd proposal: Soft Pressure
🔹 Total supply limit: 3.14 billion DOT
🔹 Inflation cycle: reduce the previous cycle's issuance amount by 13.14% each time.
🔹 First adjustment: March 14, 2026
🔹 Expected peak: Year 2160
This means that the inflation on March 14, 2026, will drop to 5.5%, and the staking yield will decrease to 10.6%
If current expenses of $450 million are to be maintained, then by 2028, DOT's market value needs to catch up with AVAX (i.e., DOT price reaching around $7 in 2028) → LINK in 2032 → ADA in 2040 → USDC in 2050
Maintain ideal expenses of $90 million: sustain current DOT market value until 2040 → AVAX in 2046 → LINK in 2052
Vote here: polkadot.subsquare.io/referenda/1709