Polkadot

DOT

DOT powers the Polkadot network, enabling governance, staking, and cross-chain interoperability among its ecosystem of connected parachains.

Risk Rating
Best
What is Polkadot?
What we like
DOT, the native token of the Polkadot blockchain, powers a highly scalable, multi-chain ecosystem designed for interoperability between different blockchains. Its robust governance model allows token holders to participate actively in decision-making, giving the community control over network upgrades and developments.
What we like less
Polkadot’s complexity and steep learning curve for developers may hinder broader adoption compared to simpler blockchain platforms. Additionally, competition from other interoperability-focused projects, such as Cosmos, could challenge its growth.
What it means for you
As a DOT holder, you gain access to an interoperable blockchain ecosystem with strong potential for scalability and cross-chain compatibility.

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Information
Blockchain
  • Polkadot
Info
  • Asset Type: dot
Key Metrics
Risk Assessment
Best
Asset Strength

DOT is a large-cap asset that represents the blockchain's native currency or monetary fee used to execute transactions on the network.

Dependencies

Polkadot has no dependencies.

Asset Tokenomics

DOT has an uncapped supply but has inflation control or burn mechanisms in place. DOT is the native token of Polkadot, enabling staking, governance, and cross-chain operations.

Things to know about DOT

What is DOT?

DOT is the native cryptocurrency of Polkadot, a blockchain platform designed to enable interoperability and scalability between different blockchains. Created by Ethereum co-founder Dr. Gavin Wood, Polkadot aims to create a decentralized web where data and value can flow seamlessly across multiple blockchains. DOT plays a crucial role in the ecosystem, serving as a governance token, a staking asset for securing the network, and a utility token for bonding new parachains.

How does DOT work?

DOT powers the Polkadot network, which uses a unique architecture of relay chains and parachains. The relay chain is the core of Polkadot, responsible for maintaining consensus and security, while parachains are individual blockchains that run in parallel, enabling scalability and customization. DOT is used for staking to secure the relay chain, governance to vote on protocol upgrades, and bonding to connect new parachains to the network. This innovative design allows Polkadot to process multiple transactions simultaneously while maintaining high security and decentralization.

How many DOT tokens are in circulation?

As of now, there are approximately 1.3 billion DOT tokens in circulation, with no maximum supply due to its inflationary model. New DOT tokens are minted to reward validators for securing the network, with an annual inflation rate of around 10%. While this model supports network growth and incentives, it also requires consistent demand for DOT to maintain its value.

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