Polkadot DAO is a decentralized governance system where key decisions are made through the OpenGov mechanism. This format was introduced in 2023 and allows DOT holders to submit proposals, vote directly, or delegate their voting power.
On September 14, the organization confirmed the adoption of Referendum No. 1710. A total of 81% of participants supported the proposal. The referendum ended the existing unlimited issuance model, under which about 120 million DOT were minted each year. Under the old system, the total supply could have exceeded 3.4 billion tokens by 2040. The new mechanism introduces a two-year token inflation cycle.
According to the project, the total number of DOT currently stands at about 1.5 billion. Token issuance will now decrease every two years on March 14, celebrated as Pi Day. To illustrate the shift, the team presented a chart showing the difference between the old model and the new capped system of 2.1 billion.
