Polkadot’s DOT Could See a 2.1B Supply Cap and Phased Issuance Cuts Under Referendum 1710

• 2.1B DOT hard supply cap replaces unlimited issuance.

• Issuance halves biennially from 2025, falling below 10M/year by 2033.

• DAO vote passed with 81% support; ties to JAM upgrade and parachain changes reshape tokenomics.

Polkadot Referendum 1710 sets a 2.1B DOT cap and steeply cuts issuance starting 2025, reducing inflation and stabilizing supply—read how this affects stakers and network upgrades.

What is Polkadot Referendum 1710 and why does it matter?

Polkadot Referendum 1710 is a DAO-approved reform that fixes DOT’s maximum supply at 2.1 billion and implements a stepped issuance reduction beginning in 2025. The change aims to reduce annual inflation, improve predictability for stakers and markets, and align tokenomics with upcoming protocol upgrades.

How does the new issuance schedule work?

Under the approved plan, annual issuance starts at the current level in 2025 but then halves every two years. The DAO projects issuance near 60 million by 2027, roughly 30 million by 2030, below 10 million by 2033, and approaching near zero after 2040. This schedule shifts long-term supply growth from steep expansion to gradual stabilization.

How will the supply curve change under Referendum 1710?

Today the circulating supply is about 1.6 billion DOT with an unrestricted issuance of 120 million DOT per year. With Referendum 1710, supply growth slows: the DAO estimates roughly 1.9 billion DOT by 2040 under the new schedule, versus nearly 3.4 billion under the old policy.

The step-down model creates predictability: reductions are scheduled every March 14 (Pi Day), making emission changes transparent and time-bound for validators and market participants.

How does this affect stakers and token distribution?

Previously, most annual issuance flowed to stakers and validators, fueling yields near 13% and adding sale pressure as rewards exited staking. By cutting emissions, rewards and new token flows will decline, potentially easing sell-side pressure and altering staking economics over the next decade.

What network upgrades relate to this tokenomics shift?

Referendum 1710 coincides with structural protocol changes. Polkadot 2.0 removed parachain auctions in 2023, lowering upfront costs for developers. The JAM (Join-Accumulate Machine) upgrade, planned for 2026, will standardize runtime cores and change workload handling—both technical shifts that the DAO says complement the supply reforms.

Frequently Asked Questions

How much did the DAO vote in favor of Referendum 1710?

The Polkadot DAO approved Referendum 1710 with 81% support, signaling clear governance backing for a 2.1 billion DOT cap and the new emission schedule.

Will Referendum 1710 change inflation immediately?

No. The change initiates in 2025 and then reduces issuance on a two-year cadence, so inflation declines gradually rather than instantly, offering predictability for markets and validators.

Key Takeaways

• Hard cap introduced: DOT supply is capped at 2.1 billion, ending unlimited minting.
• Stepped issuance cuts: Emissions halve every two years starting 2025, approaching near zero by the 2040s.
• Technical and economic alignment: Supply reforms coincide with upgrades like JAM and past parachain changes to reshape tokenomics.

Conclusion

Polkadot Referendum 1710 represents a material tokenomics pivot: a 2.1B DOT cap plus a biennial halving schedule aims to tame inflation and improve predictability for stakers and developers. Watch implementation dates and protocol upgrades such as JAM for full effects; market participants should reassess staking and allocation strategies accordingly.

Published by COINOTAG • Updated: 2025-03-15