- Polkadot has approved a hard supply cap of 2.1 billion DOT, signaling stronger fiscal discipline and long-term scarcity.
- Meanwhile, DOT trades near $4.37, testing resistance at $4.50 amid slowing derivatives activity and mixed technical signals.
Polkadot (DOT) is navigating a pivotal moment as its price approaches a key resistance level, while a major governance milestone reshapes the token’s long-term outlook.
DAO Sets Hard Cap on DOT Supply
On September 14, Polkadot’s decentralized autonomous organization (DAO) approved Referendum 1710 with overwhelming 81% support. The proposal introduces a hard cap of 2.1 billion DOT, ending years of uncapped annual issuance that inflated supply by about 10% each year.
🚨 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… pic.twitter.com/OJMtDumAZC
— Polkadot (@Polkadot) September 14, 2025
Under the new framework, token issuance will decrease every two years on March 14, steadily reducing the overall supply until it falls below 2 billion by 2040. While the decision is not legally binding, it signals strong community consensus for fiscal discipline and token scarcity.
Gavin Wood, who recently returned as CEO of Parity Technologies, framed the supply cap as part of Polkadot’s broader 2.0 upgrade. The update aims to cut developer costs and boost throughput with features like Agile Coretime and Elastic Scaling, enhancing the network’s scalability.
Polkadot Price Analysis
At the time of writing, DOT trades at $4.37, down 0.7% on the day but up 8% over the past week and 11% in the last 30 days. However, the token is still 92% below its all-time high from 2021.
DOT is testing resistance near $4.50, a level that has capped rallies several times recently. Technical indicators present a mixed picture:
- Relative Strength Index (RSI): At 61, leaning bullish but not overbought.
- Moving Averages: From short-term to long-term, they point to continued upward strength.
- MACD: Positive, hinting at underlying support.
- Commodity Channel Index (CCI): Suggests potential pullbacks.
If buyers break through resistance, the next upside targets sit at $4.80 and $5.00. On the downside, $4.00 remains the first support level, with stronger backing at $3.80.
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Market Activity Slows Down
Despite price gains, derivatives activity shows waning enthusiasm. Open interest fell 2.35% to $605 million, while derivatives volume dropped 43% to $446.5 million. Spot trading volume also declined by more than 50% in 24 hours, totaling $235.3 million.
This cooling in speculative trading indicates that while long-term fundamentals have improved with the supply cap, short-term volatility remains a risk.
Polkadot’s move to cap supply marks a new era for the project, transforming DOT into a more predictable and potentially scarcer asset. With the upcoming Polkadot 2.0 upgrade and clearer tokenomics, investors may find renewed confidence in the network’s future.
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