🚨 The #Polkadot DAO has approved Referendum 1710 with 81% consensus, announcing changes to tokenomics. 📌 Changes include: - Setting a fixed hard cap at 2.1B DOT. - Emissions will gradually decrease, adjusting every 2 years on Pi Day (March 14). - If the old model is maintained, by 2040 the supply will reach ~3.4B DOT. With the new model, it will only be ~1.91B #DOT. 📍 However, the price outlook for $DOT is what really matters: 📌 Short term (<3 months) - The hard cap of 2.1B is positive news for tokenomics, but DOT dropped -6% right after the news due to concerns over reduced staking rewards -> validators/stakers will definitely sell tokens. - DOT is seen as a deadchain, narrative = 0. Therefore, reducing the hard cap without changing the operational direction to create a treasury or support the price -> the price won't pump. 📌 Medium & long term (6–24 months) - Emissions are no longer fixed at 120M/year but will gradually decrease (but will only decrease once every 2 years) ->...
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