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. DOT is the network's cryptocurrency: it is staked to secure the network, used to buy computing capacity on it and used to vote on changes. Gavin Wood, one of the founders of Ethereum, introduced the idea in 2016, and Polkadot's first block was created on 26 May 2020.
How does Polkadot work?
The relay chain handles consensus and security and passes messages between chains. Parachains have their own rules, 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. The network 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. in which DOT holders choose validators and stake DOT behind them.
Under the name Polkadot 2.0, agile coretime replaced auctions in September 2024. Projects now buy computing capacity on the network with DOT as needed.
DOT supply
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 of new DOT was cut by more than half on 14 March 2026 and is set to keep falling every two years.
What to keep in mind
DOT holders decide on changes to the network by voting, so DOT is 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.. The rules have changed a lot in a short time. Since July 2026, nominators, who stake DOT behind validators, can get it back within two days at most instead of 28 days. The price of DOT swings a lot.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.