Polkadot has officially introduced a maximum supply cap of 2.1 billion DOT tokens, a major policy approved by its DAO. Until now, DOT had no fixed supply, with roughly 120 million tokens minted each year. Under the new framework, token issuance will decrease every two years, marking a transition from inflationary tokenomics to a disinflationary model. While this doesn’t make DOT deflationary, it significantly limits future supply growth compared to the old system.
Disinflationary means that the rate of new token issuance slows down over time, even though the total supply continues to grow. This creates relative scarcity by reducing selling pressure in the market, an approach reminiscent of Bitcoin’s fixed-supply design. Many traders see this as a bullish development, positioning DOT as a more attractive long-term asset for both retail and institutional investors.
From a technical perspective, DOT has shown early signs of recovery against Ethereum, including reclaiming its 200-day moving average for the first time in over 200 days. Historically, similar setups have triggered rallies of 150%–217%, with current targets around the $11 level, where major resistance sits. If DOT follows its previous patterns, the capped supply combined with favorable technical signals could support a rally of up to 165% from current levels. This marks a fundamental shift in Polkadot’s tokenomics, one that could reshape how the market values DOT going forward.
