A proposal to redenominate Polkadot’s DOT token that would increase its total supply by 100x has been rejected by the Web3 Foundation. According to the official blog post, a referendum was taken on Kusama about whether or not to redenominate DOTs on Polkadot in a 1:100 ratio. The outcome of this referendum was responsible for the assessment of the opinions of the community before the launch of Polkadot.
The official account tweeted:
"From here, we see only two options: do nothing and allow the current denomination to stand, or conduct a final, binding vote on Polkadot itself. As proponents of self-determination and on-chain governance, the latter is our favoured option."
Read more: https://t.co/ZtSoSaiT1h
What is Polkadot?
According to its website, Polkadot is a sharded protocol that allows blockchain systems to function together smoothly. It gives modern financial scalability by allowing a standard collection of validators to secure various blockchains. Polkadot gives transactional scalability by expanding transactions over various parallel blockchains.
What was the proposal?
The proposal was to modify the denomination of DOT in the Polkadot chain stipulation. The referendum would alter the number of Plancks that create a single DOT. Plancks are the smallest unit in Polkadot. The referendum recommended modifying a single DOT from one trillion Plancks per DOT to ten billion Plancks per DOT. In other words, a 100x decline that would be balanced by a 100x rise in the number of DOTs.
The official blog further stated that this has been the most voted-on (13%) referendum in the history of Kusama. This referendum caused active discussions on Polkassembly, Riot, Twitter, and elsewhere. Assessing the discussion and the voting exercise the web3 found that the Kusama community was divided and felt quite firmly about the referendum.
However, the denomination continues to be stable for now and the Foundation said that it will take a final vote on the Polkadot network itself after launch.
