The Polkadot DAO, the community governing body of the Polkadot ecosystem, has approved a proposal to cap the DOT token supply at 2.1 billion. This move would mean lower token production and increased scarcity. Polkadot Caps DOT Supply at 2.1 Billion According to the DAO's announcement, referendum 1710 passed with 81% of the vote. The new model introduces a two-year token inflation schedule, abandoning the current unlimited supply model. The previous system produced approximately 120 million DOT annually and had no supply cap. According to Polkadot's post, supply will be around 1.91 billion DOT by 2040 under the new model. Had the old model continued, that figure was expected to reach 3.4 billion DOT. Thanks to the OpenGov system, which Polkadot DAO launched in 2023, token holders can directly submit suggestions, vote, or delegate their voting rights. Following the decision, the price of DOT fell 2.4% to $4.24 in the last 24 hours, but rose 9.8% in the last week. The token's total market capitalization stands at $6.6 billion. *This is not investment advice.