Polkadot Cuts Annual Issuance 53.6% as DOT Rebounds to $1.27

Polkadot (DOT) rose 10.93% to $1.27 over 24 hours by 11 a.m. ET (15:00 UTC) on Oct. 10, extending a rebound from support near $1.02. The move followed Polkadot’s issuance reduction and approval of governance actions for dotUSD.

Polkadot reduced annual issuance from about 120 million DOT to roughly 56.88 million DOT on March 14, 2026, a 53.6% cut. Its supply policy also caps the maximum supply at 2.1 billion DOT and schedules additional issuance reductions every two years until the cap is reached.

The supply change gives DOT a lower annual issuance rate than under the previous model. A move from $1.27 to $1.75 would represent an increase of about 37.8%, although $1.75 is a technical level rather than a confirmed price forecast.

Polkadot OpenGov Referendum 1944 approved the creation and initial liquidity actions for dotUSD, a proposed over-collateralized stablecoin for the network. The approved plan included $2.5 million in Tether (USDT) for minting and $2.5 million in DOT for an initial liquidity pool on Asset Hub.

The governance action adds to earlier coverage of Polkadot’s dotUSD approval under OpenGov, but the current market move is centered on the issuance reduction and DOT trading data.

Derivatives readings showed elevated participation at separate times. One reading put open interest at $78 million, up 15%, with long accounts representing 73% of leveraged positions. A separate reading at 4:16 a.m. ET (08:16 UTC) showed $72.90 million in open interest and a 2.58 long-to-short ratio.

The differing figures represent distinct market readings rather than a single combined measure. A heavy concentration of long positions can magnify gains during advances and deepen declines when leveraged traders close positions.