Polkadot

What is Polkadot (DOT)?

Polkadot is a proof-of-stake network designed to connect many blockchains. Its core, the relay chain, secures the network, while other chains run alongside it and share that security. DOT is the native token. The software, called the Polkadot SDK, is open source and developed by Parity Technologies and the wider community.

What DOT is used for

• Staking: holders lock DOT to help secure the network and earn rewards.
• Governance: DOT holders vote on protocol changes, including fees, inflation and code upgrades. The OpenGov system launched in 2023.
• Coretime: DOT is spent to buy access to secure computation on the network.
• Chain identifiers: DOT is used to reserve parachain identifiers.

DOT supply and token design

For years DOT had no hard cap. Under the earlier model, supply grew by 120 million DOT a year, with 85 percent going to stakers and 15 percent to the treasury. In September 2025, token holders approved Referendum 1710 with about 81 percent support. It sets a maximum of 2.1 billion DOT and was put into effect in January 2026.

Under the new schedule, issuance falls in steps every two years. At each step, inflation is reduced to a share of the gap between the current supply and the cap. The first step took place on 14 March 2026. Net supply changes also depend on treasury burns and Coretime sale burns. Polkadot projected that supply would reach about 1.91 billion by 2040 under this model, against 3.4 billion under the old one. Live circulating supply is shown in the market data on this page.

Polkadot's model changed in recent years. The network sells Coretime, a flexible way to buy access to secure computation, and DOT is the currency used for it. This is why the token's demand drivers include both staking and Coretime purchases. Governance is run on-chain through OpenGov, where any holder can vote or delegate their votes, and referendums can change the code or rules, as the supply cap vote shows.

Official information is on polkadot.com.

What to check before using DOT

• Staking lockups: staked DOT is bonded, and unbonding takes time, so it is not instantly liquid.
• Slashing and validator risk: poor validator performance can reduce rewards or cause penalties.
• Governance changes: the supply rules have already been changed by a vote, and they can be changed again.
• Ecosystem competition: Polkadot competes with many other multichain networks and smart contract platforms for developers and users.
• Bridged and wrapped versions: DOT on other networks may be a wrapped copy with its own risks.