Cryptocurrencies remained on edge on Monday, as all eyes remain on the Fed’s rate decision this Wednesday. As large-cap altcoins gain traction due to a potential altseason, the Polkadot community has supported a permanent cap on the digital asset’s supply. That comes after the DAO voted for Referendum 1710 with a massive 81% support, setting 2.1 billion as the maximum supply of DOT coins. Polkadot @Polkadot · Follow 🚨 DOT supply → capped at 2.1 Billion 🚨The Polkadot DAO has signaled support for a hard cap, by passing Referendum 1710 on the “Wish For Change” track, with 81% in favor.Today ⤵️→ 1.6 Billion DOT exist→ 120M DOT/year minted each year→ No supply capWhat Ref. 1710 8:26 pm · 14 Sept 2025 1.2K Reply Copy link Read 150 replies Analysts are contemplating the possible impact of this move, designed for scarcity, predictability, and long-term alignment. Polkadot’s historic shift The project braces for a crucial milestone in its monetary policy. Currently, Polkadot boasts around 1.6 billion tokens in circulation, with 120 million DOT coins mined every year to support network security and staking incentives. Notably, there’s no DOT supply limit under the prevailing model. Markets are shifting from this approach as more individuals favour digital assets with deflationary issuance or fixed schedules. However, that will change soon after the referendum 1710 approval, which introduces a supply cap and a steadily reducing issuance program. What to expect under the new model? Polkadot’s newly approved proposal will slow the DOT issuance pace from March next year. Rather than minting 120 million coins every year, the project will gradually reduce token issuance after two years until it hits the 2.1 billion limit. The aim is to ensure scarcity. DOT supply would be approximately 1.91 billion by 2040 using the new approach. That’s considerably lower than 3.4 billion if Polkadot retains the existing fiscal mechanism. The team said: By 2040, supply would be 1.19 billion under Ref 1710’s model vs 3.4 billion under the current 120M/year model. Meanwhile, the proposal secured overwhelming support, with 81% approval. Many believe this move is vital in strengthening DOT’s appeal as a legit investment vehicle. A capped supply would help reduce selling momentum from staking incentives. That would possibly improve market dynamics for Polkadot investors. DOT price outlook – potential impact Referendum 1710 will likely have a bullish long-term impact on the digital asset. Hard caps often attract participants who favour tokens with predictable scarcity models. Bitcoin and other limited cryptocurrencies have thrived under this mechanism. A crypto enthusiast and popular X user commented on Polkadot’s move, stating : Scarcity is not just important – it’s the foundation of long-term value. Every cycle proves it: assets with a clear cap stand stronger, attract conviction, and build unstoppable momentum. Polkadot embracing a hard cap = game-changer for trust + adoption. DOT trades at $4.36 after gaining nearly 10% the previous week. Though it has consolidated this month, broader market sentiments and ecosystem developments suggest an undervalued project. Polkadot’s native token is expected to deliver impressive performance in the coming years, driven by scarcity, predictability, and long-term alignment under the 1710 deflationary model. The post Polkadot (DOT) supply officially locked as community backs 2.1B hard cap appeared first on Invezz
