On March 14, 2026, Polkadot executes its first halving.

Polkadot is undergoing the most significant economic restructuring in its history.

• A hard supply cap.

• Aggressive inflation cuts.

• A shift from inflationary to deflationary trajectory.

These changes fundamentally alter DOT’s economic profile and invite direct comparison to Bitcoin and Ethereum.

Here’s how the three networks stack up.

Bitcoin’s tokenomics are the simplest and most well known in crypto.

• Total supply: 21 million BTC. Hard cap. Never changes.

• Current circulating supply: approximately 19.8 million BTC (94.3% already mined).

• New issuance: through mining rewards, currently 3.125 BTC per block after the April 2024 halving.

• Inflation rate: approximately 0.85% annually and declining with each halving.

• Next halving: approximately 2028, reducing block rewards to 1.5625 BTC.

Bitcoin’s scarcity is its primary value narrative. The fixed supply creates predictable, decreasing issuance that approaches zero by approximately 2140. Every holder knows exactly how many Bitcoin will ever exist.

Ethereum’s economics changed dramatically after The Merge (September 2022) and EIP 1559.

• Total supply: no hard cap.

• Currently approximately 120 million ETH.

• New issuance: through staking rewards, approximately 0.5 to 1% annually depending on the amount staked.

• Burn mechanism: a portion of every transaction fee is permanently destroyed (burned), reducing supply.

• Net inflation/deflation: depends on network activity. During high activity periods, ETH can be net deflationary (more burned than issued). During low activity periods, it’s slightly inflationary.

Ethereum’s model is dynamic. Supply responds to network usage. High demand burns more ETH, rewarding holders. Low demand allows modest inflation to pay validators.

Polkadot’s tokenomics are being restructured through governance approved changes that represent the most dramatic economic shift of any major blockchain in 2025 to 2026.

1. Hard cap: 2.1 billion DOT. Approved via Referendum 1710 with 81% support. This permanently caps DOT’s total supply, ending the unlimited issuance concern that weighed on DOT’s economic narrative. Current circulating supply is approximately 1.5 billion DOT.

2. Inflation cuts: The first issuance cut takes effect March 14, 2026. Annual issuance drops from approximately 120 million DOT to approximately 57 million DOT, a 52.6% reduction in a single step.

3. Inflation trajectory: 7.5% in 2025. 3.1% in 2026. 1.6% by 2030. Under 1% by 2034.

The model follows a biannual halving schedule, similar in concept to Bitcoin’s four year halving cycle but more aggressive in its initial reduction.

Polkadot’s staking rate is currently much higher than Ethereum’s. More circulating supply is locked. As inflation drops, staking yields will compress. But lower issuance means less sell pressure. That could offset yield compression through price appreciation.

Right now, staking provides meaningful real yield for DOT holders. As inflation falls toward 2% and below, the game changes. Less about yield. More about value preservation. The same shift Bitcoin went through as its inflation rate declined.

Polkadot’s governance is getting stricter. OpenGov spending dropped from 4.3 million DOT in October to just 216,000 DOT in November 2025. The community is holding the treasury accountable. Unchecked spending is over.

This directly supports the new tokenomics. Less treasury spending means less DOT hitting the market. Combined with the issuance cuts, sell pressure drops from both sides. The network is maturing. Spending now matches the hard cap discipline.

Polkadot’s changes address the two primary criticisms of DOT’s economic model: unlimited supply and high inflation. Both now resolved through governance.

A hard cap. An aggressive deflation schedule. Funded development through treasury. The result is an economic model that borrows Bitcoin’s scarcity narrative, Ethereum’s ecosystem utility, and adds sovereign governance over resource allocation.

DOT has declined 97% from its all-time high as of early 2026. The tokenomics changes lay the groundwork for a potential re-evaluation. But fundamentals and prices operate on different timelines.

The data is now available for everyone to run the numbers.

Polkadot’s first era was about building the technology. The second is about building the economy. A hard cap, disciplined governance, and a clear deflation schedule signal a network that’s done experimenting with its monetary policy. The foundation is set. What gets built on it next defines everything.

The era of unlimited supply is over. What comes next is up to the builders.

On March 14, 2026, Polkadot executes its first halving.

Polkadot is undergoing the most significant economic restructuring in its history.

• A hard supply cap.

• Aggressive inflation cuts.

• A shift from inflationary to deflationary trajectory.

These changes fundamentally alter DOT’s economic profile and invite direct comparison to Bitcoin and Ethereum.

Here’s how the three networks stack up.

Bitcoin’s tokenomics are the simplest and most well known in crypto.

• Total supply: 21 million BTC. Hard cap. Never changes.

• Current circulating supply: approximately 19.8 million BTC (94.3% already mined).

• New issuance: through mining rewards, currently 3.125 BTC per block after the April 2024 halving.

• Inflation rate: approximately 0.85% annually and declining with each halving.

• Next halving: approximately 2028, reducing block rewards to 1.5625 BTC.

Bitcoin’s scarcity is its primary value narrative. The fixed supply creates predictable, decreasing issuance that approaches zero by approximately 2140. Every holder knows exactly how many Bitcoin will ever exist.

Ethereum’s economics changed dramatically after The Merge (September 2022) and EIP 1559.

• Total supply: no hard cap.

• Currently approximately 120 million ETH.

• New issuance: through staking rewards, approximately 0.5 to 1% annually depending on the amount staked.

• Burn mechanism: a portion of every transaction fee is permanently destroyed (burned), reducing supply.

• Net inflation/deflation: depends on network activity. During high activity periods, ETH can be net deflationary (more burned than issued). During low activity periods, it’s slightly inflationary.

Ethereum’s model is dynamic. Supply responds to network usage. High demand burns more ETH, rewarding holders. Low demand allows modest inflation to pay validators.

Polkadot’s tokenomics are being restructured through governance approved changes that represent the most dramatic economic shift of any major blockchain in 2025 to 2026.

1. Hard cap: 2.1 billion DOT. Approved via Referendum 1710 with 81% support. This permanently caps DOT’s total supply, ending the unlimited issuance concern that weighed on DOT’s economic narrative. Current circulating supply is approximately 1.5 billion DOT.

2. Inflation cuts: The first issuance cut takes effect March 14, 2026. Annual issuance drops from approximately 120 million DOT to approximately 57 million DOT, a 52.6% reduction in a single step.

3. Inflation trajectory: 7.5% in 2025. 3.1% in 2026. 1.6% by 2030. Under 1% by 2034.

The model follows a biannual halving schedule, similar in concept to Bitcoin’s four year halving cycle but more aggressive in its initial reduction.

Polkadot’s staking rate is currently much higher than Ethereum’s. More circulating supply is locked. As inflation drops, staking yields will compress. But lower issuance means less sell pressure. That could offset yield compression through price appreciation.

Right now, staking provides meaningful real yield for DOT holders. As inflation falls toward 2% and below, the game changes. Less about yield. More about value preservation. The same shift Bitcoin went through as its inflation rate declined.

Polkadot’s governance is getting stricter. OpenGov spending dropped from 4.3 million DOT in October to just 216,000 DOT in November 2025. The community is holding the treasury accountable. Unchecked spending is over.

This directly supports the new tokenomics. Less treasury spending means less DOT hitting the market. Combined with the issuance cuts, sell pressure drops from both sides. The network is maturing. Spending now matches the hard cap discipline.

Polkadot’s changes address the two primary criticisms of DOT’s economic model: unlimited supply and high inflation. Both now resolved through governance.

A hard cap. An aggressive deflation schedule. Funded development through treasury. The result is an economic model that borrows Bitcoin’s scarcity narrative, Ethereum’s ecosystem utility, and adds sovereign governance over resource allocation.

DOT has declined 97% from its all-time high as of early 2026. The tokenomics changes lay the groundwork for a potential re-evaluation. But fundamentals and prices operate on different timelines.

The data is now available for everyone to run the numbers.

Polkadot’s first era was about building the technology. The second is about building the economy. A hard cap, disciplined governance, and a clear deflation schedule signal a network that’s done experimenting with its monetary policy. The foundation is set. What gets built on it next defines everything.

The era of unlimited supply is over. What comes next is up to the builders.