A new proposal announced on May 25, 2026, seeks to overhaul Polkadot’s tokenomics, introducing a hard supply cap of 2.1 billion DOT and significantly cutting the token’s inflation rate. The move aims to create a more predictable and scarce economic model for the network's native asset.
The proposal, originating from the Polkadot community, outlines a fundamental reset of the network's monetary policy. The core of the plan is to establish a finite supply for the DOT token, similar to Bitcoin's model, and to reduce the annual rate of new token issuance by 54 percent.
If implemented, the changes would slash Polkadot's inflation from 7% to around 3%, according to details in the proposal. This follows a recent 5% price increase for DOT on May 24, which saw its price climb to $1.27 with a market capitalization of $2.15 billion, per CoinMarketCap data. The token is currently trading below its all-time high of $55.
The proposed tokenomics reset is the latest in a series of adjustments designed to bolster DOT's value proposition. By making the token scarcer over time, the community hopes to attract long-term investors. The proposal also includes updates to the staking mechanism, which will reduce the time required for users to unlock their staked tokens and improve the validator selection process. These enhancements are expected to improve network security while lessening the sell pressure from newly created tokens.
The network has major support levels between $1.20 and $1.25, with resistance seen at the $1.40 to $1.63 range. A sustained move above $1.50 could signal further upward momentum. The recent price action comes as other major cryptocurrencies, including Bitcoin and Ethereum, also experienced minor gains. Polkadot is also seeing growing adoption of real-world asset tokenization, with projects like Centrifuge joining its ecosystem.
This article is for informational purposes only and does not constitute investment advice.
