[Crypto projects](https://revain.org/projects/) › Polkadot

# Polkadot (DOT): how it works, supply and reviews

## In short

- **Type**: Sharded multi-chain network: a relay chain plus application-specific rollup chains (parachains)
- **Maximum supply**: Capped at 2.1 billion DOT; total supply is about 1.6 billion DOT
- **Risks and caveats**: DOT is inflationary until the 2.1 billion cap is approached; net inflation depends on burns and coretime sales.
- **Checked**: 31 October 2026

## Key facts

- **Ticker**: DOT
- **Official site**: [polkadot.com](https://polkadot.com/)

Key facts checked on 31 October 2026 against official sources.

## What is Polkadot

Polkadot is a multi-chain network in which a relay chain secures many connected rollup chains (formerly called parachains) and lets them exchange data. DOT is its native token, used for governance, staking and buying coretime.

## Network and consensus

| Parameter | Details |
|---|---|
| Type | Sharded multi-chain network: a relay chain plus application-specific rollup chains (parachains) |
| Consensus | Nominated proof of stake with BABE block production and GRANDPA finality |
| Block time | One relay-chain block every six seconds |
| Smart contracts | Yes; Polkadot Hub runs smart contracts with Ethereum-compatible tooling |
| Launched | Genesis block on 26 May 2020; proof of stake from 18 June 2020; transfers enabled 18 August 2020 |

## Supply and issuance

| Parameter | Details |
|---|---|
| Maximum supply | Capped at 2.1 billion DOT; total supply is about 1.6 billion DOT |
| Issuance | Since Referendum 1710 (January 2026), issuance steps down every two years, first on 14 March 2026 |
| Staking rewards | New DOT rewards validators and nominators and funds the Treasury |
| Redenomination | On 21 August 2020, 1 old DOT became 100 new DOT |

## What DOT is used for

- Voting in on-chain governance (OpenGov) on fees, inflation and upgrades
- Staking to secure the network and earn rewards
- Buying coretime to access secure computation for rollups

## Who develops and governs Polkadot

- **Governance**: Polkadot OpenGov: every protocol change needs a stake-weighted referendum
- **Decentralisation**: The Sudo super-user module was removed on 20 July 2020, handing governance to DOT holders
- **Foundation**: Web3 Foundation publishes the Polkadot Wiki and runs the security reporting process
- **Developer**: Parity Technologies maintains the Polkadot SDK and the developer docs

## History

| Date | Event |
|---|---|
| 26 May 2020 | Genesis block produced; the network starts as proof of authority under a single Sudo account. |
| 18 June 2020 | Polkadot switches to proof of stake. |
| 18 August 2020 | DOT transfers are enabled at block 1,205,128. |
| 21 August 2020 | DOT is redenominated: 1 old DOT = 100 new DOT. |
| 12 August 2023 | Coretime, proposed by Gavin Wood, is approved, later replacing parachain slot auctions. |
| January 2026 | Referendum 1710 introduces a capped, stepped issuance schedule towards the 2.1 billion DOT cap. |

## Security and audits

- Web3 Foundation runs a Polkadot bug bounty and asks researchers to report security issues privately.
- Validators are selected through nominated proof of stake, which spreads stake evenly across validators.

## Risks and caveats

- DOT is inflationary until the 2.1 billion cap is approached; net inflation depends on burns and coretime sales.
- Issuance rules can be changed by on-chain referendum, as happened in January 2026.
- The network started under a single super-user account before control passed to token holders in July 2020.

## Official links

- Website: [polkadot.com](https://polkadot.com/)
- Docs: [docs.polkadot.com](https://docs.polkadot.com/)
- Wiki: [wiki.polkadot.com](https://wiki.polkadot.com/)
- Source code: [github.com/paritytech/polkadot-sdk](https://github.com/paritytech/polkadot-sdk)
- Governance: [wiki.polkadot.com/learn/learn-polkadot-opengov](https://wiki.polkadot.com/learn/learn-polkadot-opengov/)

## Questions and answers

**What is Polkadot?**

Polkadot is a multi-chain network where a relay chain secures connected rollup chains and lets them interoperate. DOT is its native token.

**What is the maximum supply of DOT?**

DOT is capped at 2.1 billion; total supply is about 1.6 billion DOT. Issuance steps down every two years since Referendum 1710.

**How does Polkadot reach consensus?**

Nominated proof of stake, with BABE producing a block every six seconds and GRANDPA finalising them.

**When did Polkadot launch?**

The genesis block was produced on 26 May 2020; proof of stake started on 18 June 2020 and transfers on 18 August 2020.

**Why did DOT balances change in 2020?**

On 21 August 2020 DOT was redenominated: one old DOT became 100 new DOT.

## Sources

- [Polkadot Wiki — DOT Token](https://wiki.polkadot.com/learn/learn-dot/)
- [Polkadot Wiki — FAQ](https://wiki.polkadot.com/general/faq/)
- [Polkadot Wiki — Consensus](https://wiki.polkadot.com/learn/learn-consensus/)
- [Polkadot Wiki — Polkadot 1.0](https://wiki.polkadot.com/general/polkadot-v1/)
- [Polkadot Wiki — OpenGov](https://wiki.polkadot.com/learn/learn-polkadot-opengov/)
- [Polkadot Docs — home](https://docs.polkadot.com/)
- [Polkadot Docs — Smart contracts overview](https://docs.polkadot.com/smart-contracts/overview/)
- [Polkadot SDK README (GitHub)](https://raw.githubusercontent.com/paritytech/polkadot-sdk/master/README.md)
- [Web3 Foundation — Security report](https://web3.foundation/security-report/)

## More in this section

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Page updated: 2026-10-31

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Source: https://revain.org/projects/polkadot/