According to a new report from CoinDesk, cryptocurrency prices have been falling for the past few months, with BTC hovering at $21,000. Today we will talk about, how many Polkadot tokens are there and whether Polkadot has max supply or not. Let’s find out about those by reading this article.
Does Polkaot have max supply?
Polkadot has no upper limit on the number of coins that can be circulated. As a proof-of-stake (PoS) cryptocurrency, DOT is inflationary, which means its currency in circulation will continue to grow.
This inflation level is set at 10%, which will increase the number of DOTs by 10% per year. Of course, this inflation cap and supply cap may change through governance. For example, in July 2020, the first Polkadot vote was held, with 86% of voters holding 2.47 million DOT votes, increasing the total DOT supply by a factor of 100. This "heavy denomination vote" increases the supply of DOTs from 10 by 100,000 to 1 billion next month.
How many Polkadot tokens are there?
As we already mentioned, Polkadot raised $145 million in sales through a token sale in October 2017. Two different sales took place at the time: a private sale and a public sale. The private sale raised about $80 million, while the public sale ended up with $65 million.
To verify the identity of the sales participants, a KYC system called PICOPS is used. However, Chinese and U.S. citizens were excluded from the token sale due to regulatory concerns. All earnings are collected in ETH.
Although the initial supply was only 10 million DOTs, the community was called to vote to change the denomination. It increases all account balances by a factor of 100 and reduces the price proportionally, allowing more DOTs to be traded. The distribution of the initial DOT coins is as follows:
50% to token sale investors
5% to 2019 private equity investors
3.4% to 2020 Token Sale Investors
11.6% reserved for future fundraising purposes
30% to the Web3 Foundation for developing the Polkadot network
The total supply is currently capped at 1 billion, but this cap is not fixed. DOT is an inflationary token because it must continually provide rewards to maintain its proof-of-stake framework.
I hope this article will help you to understand whether Polkadot has max supply and how many polkadot are there. Polkadot provides various utilities for different entities and individuals. It enables another decentralized payment method outside of the intervention of intermediaries, giving you greater control over your funds.
