Will the reduction in DOT's total supply make you invest in it?

[Vincom]

The discussion around how a token's total supply impacts investor behavior and price appreciation has always been a key one in the crypto market. Many argue that BTC is highly priced because its supply is hard-capped at 21 million, while DOGE's price can't sustain a major rise due to its unlimited supply. This time, we're getting another real-world scenario to gain more perspective on this exact matter.

Polkadot is planning to cap its total supply at 2.1 billion DOT, perhaps a symbolic nod to BTC's 21 million limit. The likely goal of this move is to combat the continuous price depreciation of DOT after several unsuccessful efforts by the Web3 Foundation. However, even with this news, the DOT price is still suppressed below 5 USD instead of surging like OKB did back in mid-August following its decision to change its token supply.

This really reminds us that a token's price isn't solely determined by its total supply, but also, and crucially, by the actual demand from users and investors to own it. The demand for DOT simply isn't large enough right now to support a market price increase, so even if the total supply were cut by 50%, it doesn't mean the DOT price would immediately double.

I sincerely hope that in the coming time, Polkadot will roll out more impactful upgrades and develop its own unique narrative to sustainably support and drive the DOT price up, instead of staying near the bottom like it is now. After all, their parachain solution is genuinely useful given the growing need for interoperability between blockchains in the future.

I would like to know your opinion on this issue:

• Are you investing in DOT? Are you profitable or are you taking temporary losses?
• Do you think the DOT price will increase in the future due to the narrative of the reduction in total supply?
• What is your target for the DOT price this season in USD?

Polkadot DAO approves 2.1B token cap on DOT supply in tokenomics shift

[gluedog]

No, a cap alone wouldn't make me buy. It's unlikely that it moves price by itself.

A 2.1B cap mostly limits future issuance. Current supply is well below that, so near-term flows don't change unless they also cut inflation or lock more DOT.

[Dunamisx]

If there is any form of burning to a coin or token does not still guarantees for it performance, we have to make some more research about it to ensure that the information and certainty needed have been well fetched before deciding on investing into any, we need to see more beyond just the reduction in the total supply or coins in circulation, but when there are investors willing to buy and also pulling the necessary results for adequate performance, people by themselves will key into the project to buy more and hodl, hence we should not take the reduction in total supply as the only basis for our investment.

[asriloni]

• Are you investing in DOT? Are you profitable or are you taking temporary losses?
• Do you think the DOT price will increase in the future due to the narrative of the reduction in total supply?
• What is your target for the DOT price this season in USD?

1. I'm not. I don't like their outdated tech.
2. Yes i think so. Reduction supply should be the main narrative that may be driving DOT's price to increase. Other than that DOT staking reward will be also massively reduced, which prevent the inflation to happen faster. Less coin distributed to the market meet big demand = bullish!
3. Just like what i said in the my first answer. I have no target caused by i have no intention to hold it.

[JeromeTash]

Was of time. The hype behind DOT died a while back, and I don't think a token burn is going to change anything. I have seen tokens do those token burns in order to reduce on that circulating supply with hope that the price goes astronomical, but instead the price keeps going all the way down. Want to know why? Without demand, reducing supply alone does not help.

I think the great old days of polkadot are long gone just like the likes of chainlink and group.

[CryptoCrookz]

Was of time. The hype behind DOT died a while back, and I don't think a token burn is going to change anything. I have seen tokens do those token burns in order to reduce on that circulating supply with hope that the price goes astronomical, but instead the price keeps going all the way down. Want to know why? Without demand, reducing supply alone does not help.

I think the great old days of polkadot are long gone just like the likes of chainlink and group.

some pretty dead tokens came back to life in short bursts recently, but that was usually temporary...

[nelson4lov]

Wtf is reduction in supply?

This is a time when people actually want to see protocols get traction and get substantial and sustainable revenue that accrues value to token holders. Right now, no value accrues to DOT holders. The only thing DOT holders have received so far is dump after dump especially from the Polkadot foundation constantly selling and using their community as exit liquidity for years. I'm pretty sure this new initiative is just a scheme to trap new buyers as exit liquidity.

No, thank you.

[X-ray]

They should've focused on their ecosystem. Solana and Ethereum with uncapped total supply is still going strong despite the inflation. At this point the cap of total supply isn't the problem, they should be more concerned of attracting big decentralized apps integration to their blockchain.

Even if the total supply is half of what mentioned, if the blockchain is just a dead chain, the price won't move. Moroever, this supply reduction marketing stunt won't work if the blockchain just don't have any utility at all. At least that's my 2 cent. Study ethereum.