Polkadot (DOT)
A relay chain that rents out security to other chains and a token whose issuance rules were rewritten by vote, set out as facts from the Polkadot Wiki.
On this page
- DOT is used to vote in governance, to stake for network security and to buy coretime.[1]
- Polkadot selects validators by Nominated Proof-of-Stake; blocks come in slots of about 6 seconds.[3]
- Issuance was a fixed 120,000,000 DOT a year, 15% to the treasury and 85% to stakers.[1]
- Referendum 1710, implemented in January 2026, caps supply at 2.1 billion DOT with issuance stepping down every two years.[1]
- Agile Coretime replaced parachain slot auctions with a runtime upgrade on 19 September 2024.[2]
What is Polkadot and who governs it?
Polkadot is a blockchain network built around a relay chain that provides computing resources, called cores, to secure the blocks of other chains known as parachains.[2] DOT is its native token. The Polkadot Wiki, published by the Web3 Foundation, lists three uses for it: voting in governance, staking to secure the network, and buying coretime.[1]
Changes to the protocol are decided by DOT holders, who can vote and propose changes on-chain.[1] The token's own issuance rules were rewritten this way in 2026.[1] The wiki pages we checked do not give a launch date or a founding story, so this profile does not state them. For how chains connect to one another more generally, read cross-chain bridges explained.
How does the Polkadot network work?
Polkadot uses Nominated Proof-of-Stake (NPoS) to choose its validators. Nominators back validators with their own stake, and validators produce blocks, check parachain blocks and guarantee finality.[3]
| Part | What it does |
|---|---|
| NPoS | Selects the validator set, with nominators backing validators[3] |
| BABE | Decides who authors each block; slots last about 6 seconds[3] |
| GRANDPA | Finalises blocks once more than two-thirds of validators attest to them[3] |
| Cores and coretime | Relay-chain resources that secure parachain blocks, sold as time[2] |
Coretime replaced the older model. In Polkadot 1.0, a parachain had to win an auction to lease a slot, which guaranteed validation for up to two years.[2] Bulk coretime is now sold for periods of 28 days.[2] Compare staking designs in proof of work vs proof of stake.
How are new DOT created?
New DOT is minted to reward the validators and nominators who stake, and to fund the Polkadot Treasury.[1] The rules have changed:
| Model | Rule |
|---|---|
| Earlier fixed model | 120,000,000 DOT a year: 15% to the treasury, 85% to stakers[1] |
| Referendum 1710 (implemented January 2026) | Capped at 2.1 billion DOT; inflation steps down every two years, described as 13.14% of the remaining gap to the cap every two years; first step 14 March 2026[1] |
The wiki puts current total supply at roughly 1.6 billion DOT.[1] It also defines net inflation as gross issuance minus burned supply, where burns come from the treasury and coretime sales.[1]
What is DOT used for?
- Governance. DOT holders vote on network governance and can propose protocol changes.[1]
- Staking. Holders lock DOT to secure the network and earn staking rewards, either as validators or as nominators backing them.[1][3]
- Coretime. DOT buys coretime, which gives projects access to secure computation and interoperability.[1]
For the general mechanics, see what is staking.
What are the key dates in Polkadot's history?
The Polkadot Wiki pages we used date recent changes but not the network's launch, so this list starts with the auction era it describes.
| Date | Event |
|---|---|
| Until September 2024 | Parachains lease slots through auctions (Polkadot 1.0)[2] |
| 19 September 2024 | Agile Coretime launches by runtime upgrade; auctions end[2] |
| January 2026 | Referendum 1710 implemented: 2.1 billion DOT cap[1] |
| 14 March 2026 | First two-yearly issuance step-down[1] |
What are the specific risks of holding DOT?
- Dilution if unstaked. New DOT is minted for stakers and the treasury,[1] so a holder who does not stake owns a shrinking share while issuance continues.
- Rules set by vote. Referendum 1710 shows that DOT holders can change the issuance schedule itself.[1] Future votes could change it again.
- Validator honesty. Finality depends on more than two-thirds of validators attesting to the chain.[3]
- Custody. Lost or hacked self-custody wallets can mean permanent loss; custodians can be hacked or go bankrupt.[4]
What mistakes do beginners make with DOT?
- Quoting the old inflation rule. The fixed 120,000,000 DOT a year model was replaced by a capped, stepped schedule in January 2026.[1]
- Confusing the cap with current supply. The cap is 2.1 billion DOT; current supply is roughly 1.6 billion.[1]
- Misreading raw units. On-chain amounts may be shown in planck, and one DOT equals 10,000,000,000 (10^10) planck.[1]
- Assuming parachain auctions still run. They ended when Agile Coretime launched on 19 September 2024.[2] See also layer 1 vs layer 2.
Questions readers ask
Does DOT have a maximum supply?
Yes, since Referendum 1710: supply is capped at 2.1 billion DOT.[1]
What is a planck?
The smallest unit of DOT: one DOT equals 10,000,000,000 (10^10) planck.[1]
What is coretime?
The time allocated for using a core, the relay-chain resources that secure a parachain's blocks. Bulk coretime is sold for 28-day periods.[2]
Who decides changes to Polkadot?
DOT holders, who vote on governance and can propose changes to the protocol.[1]
DOT is a governance, staking and coretime token[1] for a network that sells relay-chain security to other chains.[2] Its issuance moved from a fixed yearly amount to a 2.1 billion DOT cap by referendum in 2026,[1] which is a reminder that on Polkadot the monetary rules themselves are open to a vote.
Sources
- Web3 Foundation (w3f/polkadot-wiki), DOT (Polkadot Wiki, learn-DOT source file) (2026)Primary source
- Web3 Foundation (w3f/polkadot-wiki), Agile Coretime (Polkadot Wiki source file) (2026)Primary source
- Web3 Foundation (w3f/polkadot-wiki), Polkadot Consensus (Polkadot Wiki source file) (2026)Primary source
- US Securities and Exchange Commission (Investor.gov), Crypto Asset Custody Basics for Retail Investors (2025)Primary source
Educational content only — not financial, investment, legal or tax advice. Crypto-assets are high-risk and you could lose all the money you put in. Rules differ by country; check with your national regulator. See our risk disclosure and editorial policy.
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