Polkadot ($DOT ) came to announce the unanimous approval of Referendum 1710.
Thus, with this approval, the maximum supply of tokens has changed to 2.1 billion and there was a change from an inflationary model to a controlled scarcity model.
When it comes to a digital asset, the imposition of the concept of scarcity is fundamental to leveraging the perception of value.
Changes in the supply model
It was on September 14 of this year that 81% of the voters of the Polkadot DAO community decided to move forward with Referendum 1710.
In fact, Referendum 1710 established a maximum value of 2.1 billion DOT tokens.
This measure contrasts with the previous annual issuance of 120 million new tokens, which would result in approximately 3.4 billion tokens in circulation by 2040.
The rules now established foresee a stabilization of the number of tokens $DOT in circulation.
Thus, it prevents the uncontrolled increase of issued tokens, something that is fundamental for the future valuation of the project.
The model now established for a staggered growth will come into effect on March 14, 2026 (Pi Day).
From that date, there will be reductions in the amount of tokens to be issued in each two-year cycle.
The gradual reduction of tokens aims to lower the inflation rate, while not negating the necessary incentives for investors.
With this structure, Polkadot aims to enhance the perception of predictability and scarcity.
Reasons for the change and impact on governance
The proposal that comprises Referendum 1710, titled 'Wish For Change', responds to the desire to adapt Polkadot to stricter economic policies closer to Bitcoin.
The establishment of a maximum value and a schedule for the gradual issuance of DOT reinforces its long-term value.
Undoubtedly, this decision also demonstrates the evolution of the network's decentralized governance model.
The approval with over 80% of votes reveals a consensus among DOT participants and highlights the global goal of creating a sustainable ecosystem in the Web3 universe.
Market reaction and price analysis
Following the announcement of Ref. 1710, the value of DOT recorded a weekly appreciation that approached 10%, reaching values of $4.36.
However, in the 24 hours that followed, there was a correction of 5%, thus fixing approximate values of $4.20.
At this moment, the token is trading at $4.22.
The technical perspective of the token indicates that it is in the consolidation phase, with support levels of $4.24 and resistance at $4.58.
However, there may be fluctuations that allow the value to increase to $5, just as there may be a drop to around $4.
Long-term perspectives
With the shift to a deflationary token logic, selling pressure to receive staking rewards should be minimized.
Many crypto experts believe that we are facing a decisive moment, where the $DOT may begin to be used as a store of value and attract institutional investors.
Moreover, this new model could leverage the development of the Polkadot ecosystem, as there seems to be a direct relationship between controlled supply and the trust of developers and users.
Something that Polkadot has in its favor is the strong involvement of its community. At this moment, the project's community governance site shows a total of 30 active referendums.
As 26 are in decision phase, 3 are in preparation, and one is awaiting confirmation. These numbers demonstrate a true intention for progress and implementation of new functionalities.
It will be necessary to wait until March 2026 for the start of the model change. The real impact of such a change on the value of DOT and the market dynamics will be measured later.