Polkadot’s DOT Token Transfer Goes Live; Redenomination by 100x Supply Increase In 2 Days
Polkadot announced yesterday that its DOT tokens can now be transferred, after the blockchain hit block no. 1,205,128. This milestone places the Ethereum competitor at a better place, given it’s been a work in progress since 2016. Its Mainnet went live as recent as May 2020 with the latest achievement on DOT tokens transferability set to scale its value proposition even further.
The firm, however, noted that DOT token redenomination would occur in approximately three days, which translates to August 21 at 16:40 UTC. This process is particularly crucial in the rolling out of Polkadot’s complete version since it is the base of its ecosystem tokenomics. Notably, there have been some changes in the value represented by one DOT token hence the redenomination process.
Currently, the smallest DOT unit is ‘10**12’ Plancks, but this will be altered to ‘10**10’ Plancks once the blockchain hits block number 1,248,328. It is quite noteworthy that this development is a result of votes taken by the Polkadot community towards the end of July, where 86% voted to increase the DOT token supply by 100 times.
Following its Mainnet launch, DOT token is already gaining the attention of prominent crypto exchanges, including Kraken, which has gone the extra mile to announce trading and staking support for this digital asset. The exchange announced that it would reward as much as 12% per annum for staking DOT tokens with bi-weekly payments. Other significant players who have also expressed support for DOT tokens are Huobi, OKEx, and Binance.
With such dynamics already favoring DOT tokens, Polkadot was keen to issue a warning that some exchanges might try to express the wrong value of this digital asset between now and the actual redenomination time. The project cautioned that such events are probable given malicious actors might decide to commit fraud in this 2-day window given an upper hand with information,
“Do not be fooled by suspiciously low DOT prices. Though most exchanges will represent DOT accurately, there is a chance that some unscrupulous exchanges may choose to enact the redenomination before the date agreed by the Polkadot community, and thus report the apparent price at approximately 100 times lower than the actual market price.”