The Polkadot community has approved a major change to its tokenomics, with a sharp reduction in inflation and the introduction of a hard supply cap.
Previously, DOT had a fixed annual inflation of 120M tokens with no maximum supply. Now, the new model caps the total supply at 2.1B $DOT (current supply â 1.6B).
This change ensures long-term sustainability of the network â projected until the year 2160.
From here on, Polkadotâs funding will rely on revenue generation rather than endless DOT issuance (a true reinvention đ).
On top of that, new burn mechanisms will be in place: đ„ A portion of transaction fees đ„ Treasury balance đ„ Revenues from Coretime leasing âŠand more.
Overall, a highly positive update for the @Polkadot Network ecosystem. #Polkadot