Key takeaways
- Polkadot is a network that connects many specialised blockchains, known as parachains, which share security. DOT is the network's cryptocurrency.
- Gavin Wood, one of the founders of Ethereum, introduced the idea in 2016, and the network went live in 2020.
- In September 2025 DOT holders voted to cap the supply at 2.1 billion DOT, and issuance was cut by more than half in March 2026.
- DOT holders decide on changes to the network by voting, and the rules have changed a lot in a short time.
Contents
Polkadot is a network that connects many specialised blockchainsBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing., known as parachains, which share common security and can exchange data and assets. The network's cryptocurrency is called DOT: it is staked to secure the network, used to buy computing capacity on it and used to vote on changes.
The idea is that different chains can each specialise in their own field and still work together. This article explains who created Polkadot, how the network works, what has changed in recent years and what the risks are.
Who created Polkadot?
Polkadot is the brainchild of Gavin Wood, one of the founders of Ethereum. He introduced the idea in a WhitepaperWhitepaperA document in which the creators of a cryptocurrency or project describe how it works, what it is for and which rules apply to it. in 2016 and founded the project with Robert Habermeier and Peter Czaban. The company Parity Technologies built the software, and the Web3 Foundation, a non-profit, supports research and development.
Polkadot's first block was created on 26 May 2020, and DOT transfers were switched on in August that year. The first parachains went live in December 2021.
What is Polkadot used for?
- Dedicated chains. Projects that need their own chain can buy computing capacity on Polkadot and get the network's security without building it themselves. The gaming chain Mythos, for example, runs on Polkadot and supports games such as NFL Rivals. The company Mythical Games announced in 2023 that it would move the chain from Ethereum to Polkadot.
- Assets and stablecoins. Polkadot Hub holds DOT, stablecoinsStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. and other assets. Circle began issuing USDCUSDCA stablecoin issued by the US company Circle that tracks the US dollar, so one USDC should always be worth about one dollar. natively on Polkadot in September 2023.
- Smart contracts. Since early 2026, Ethereum-compatible smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met. can run on Polkadot Hub, using the same tools developers use on Ethereum.
- Links to other networks. A dedicated system chain, Bridge Hub, connects Polkadot to other networks, including Ethereum, through bridgesBridgeA service that moves crypto or tokens between two blockchain networks, usually by locking the asset on one network and issuing an equivalent on the other..
How does Polkadot work?
The relay chain and parachains
At the heart of Polkadot is the relay chain. It handles consensus and security for the whole network and passes messages between chains. Parachains are independent chains with their own rules and often their own tokens, but the relay chain's validatorsValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. check their blocks. That way, no chain has to build its own security from scratch.
Think of Polkadot as a shopping centre. Each shop decides what it sells, but security, electricity and parking are shared. The chains talk to each other using a common standard called XCM.
In late 2025, the network's balances, staking and governance moved from the relay chain to a dedicated system chain, Polkadot Hub. The relay chain now focuses on consensus, security and messaging between chains.
Consensus and staking
Polkadot uses a version of proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake. called nominated proof of stake. DOT holders, known as nominators, choose validators they trust and stake DOT behind them. In nomination pools, people can take part with small amounts, for example 1 DOT.
The StakingStakingLocking up crypto on a proof-of-stake network to help confirm transactions, in return for rewards paid in the same crypto. rules changed a lot in 2026. Under a change that DOT holders approved and that took effect in July 2026, nominators can no longer lose part of their stake through SlashingSlashingA penalty on proof-of-stake networks. A validator that breaks the rules loses part of its stake and is removed from the network.. At the same time, the wait to get DOT back after unstaking fell from 28 days to two days at most. Validators can still lose part of their own stake if they break the rules.
Polkadot 2.0 and agile coretime
Under the name Polkadot 2.0, three changes were made in 2024 and 2025:
- Async backing (May 2024) halved the time between blocks on parachains, from 12 seconds to 6.
- Agile coretime (September 2024) replaced auctions. Projects used to have to win an auction for a place on the network and lock up a lot of DOT for up to two years. Now they buy computing capacity, called coretime, with DOT as needed, either in larger amounts in advance or as they go.
- Elastic scaling (October 2025) lets a single chain use more than one core at a time when demand rises.
DOT supply and governance
Until 2026 there was no cap on the number of DOT, and in recent years 120 million new DOT were issued every year. In September 2025, DOT holders voted to set a maximum supplyMaximum supplyThe largest number of units of a cryptocurrency that can ever exist under its rules, such as 21 million for bitcoin. of 2.1 billion DOT. Issuance was cut by more than half on 14 March 2026 and is set to fall every two years after that. According to the Polkadot Wiki, the total supplyTotal supplyHow many units of a cryptocurrency already exist, whether in circulation or still locked, minus any that have been destroyed. is now about 1.6 billion DOT.
DOT holders decide on changes to the network through an on-chain governance system called OpenGov. They vote on upgrades, spending from the network's treasury and even monetary policy itself, as the DOT cap shows. DOT is therefore also a governance tokenGovernance tokenA token that gives voting rights over a DeFi service's rules and treasury. It is not a share and gives no ownership stake or right to dividends..
What are the risks?
- Complexity and competition. Polkadot is technically complex. Critics argue that the network has struggled more than some others to attract users and developers. Some projects have also left: Moonbeam, which was an Ethereum-compatible parachain, now runs on another network. Ethereum, layer 2 networksLayer 2A system built on top of a blockchain such as Ethereum or Bitcoin to make transactions faster and cheaper than on the base network itself. and Avalanche also offer custom chains.
- Rapid change. In a short time, the issuance schedule, the staking rules and the structure of the network have all changed. Change brings a risk of bugs, and today's rules can change in the next vote.
- Price swings. The price of DOT swings a lot, like that of other cryptocurrencies. See VolatilityVolatilityHow much and how quickly the price of an asset moves up and down..
DOT on Myntkaup
On Myntkaup you can buy, sell and hold DOT. You can also deposit and withdraw DOT on-chain, on the Polkadot network.
When DOT is sent, the recipient must also be using the Polkadot network. Crypto sent on the wrong networkBlockchain networkThe blockchain a cryptocurrency or token is recorded and sent on, such as the Bitcoin network or the Ethereum network. can be lost, as the article How to send crypto to another wallet explains. You can see the price of DOT on the DOT price page.
Frequently asked questions
What is Kusama?
Kusama is Polkadot's experimental network, with its own cryptocurrency, KSM. New features are often switched on there, in real conditions, before they reach Polkadot.
Is there a cap on the number of DOT?
Yes, since 2026. DOT holders approved a cap of 2.1 billion DOT, and the number of new DOT falls every two years until the cap is reached.
Closing thoughts
Polkadot is a network of many specialised chains that share security and talk to each other. DOT is used to secure the network through staking, to buy computing capacity and to vote, and since 2026 its supply has been capped.
The network has changed a lot in recent years, and the rules can keep changing through votes. The price of DOT swings a lot, so learn about the risks before you buy.
