How Polkadot token denomination is going to affect trading?

The denomination story began on July 13rd by publishing an on-chain referendum which was supposed to decide whether the community of DOT token holders wants to change the token supply in the network. Voting ran for 2 weeks and any token holder could participate (at that time, DOT tokens were only available to people who bought it during DOT’s ICO). The whole voting process was completely decentralized and Web3 Foundation or Parity technology (the company behind Polkadot’s development) didn’t take any part in this poll. The referendum was comprised of 4 options

• keep the DOT supply as it is — that would mean 10 000 000 DOT tokens being minted from the genesis block
• increase supply by 10x
• increase supply by 100x
• increase supply by 1000x

After the poll was conducted, the results were pretty clear in favor of option number 3. Also, it’s really encouraging for the Polkadot community that 1/3 of token holders participated in the poll (even considering the fact that Web3 and Parity didn’t take part in the poll while they are still holding big amount of tokens).

So, this actually means that the token supply will be increased to the 1bln and the price will be divided by one hundred. This change is scheduled to happen at block 1,248,328, which is supposed to be mined around 4:40 pm on Friday 21/8/2020. When this block is mined, each token holder should have 100x more tokens in his wallet with price per token being 100x lower — in the time of writing of this article, the price before denomination is approximately 300 USD, so after this even should be around 3 USD.

Balance Transfers

Before the denomination itself, there was one more important event happening in the Polkadot network and that was enabling of token transfers. It already happened 18/8/2020 at block 1,205,128 so from this moment transfers between wallets and most of the exchanges are enabled.

Denomination support on exchanges

Exchanges which are already offering New DOT

• tokens are already offered at price after denomination (around 3 USD at the moment)
• token transfers are not enabled yet (after the denomination event)
• so far only Binance and Kraken

Exchanges with Old Dot

• DOT is being traded with the old price at the moment (around 300 USD)
• the denomination will happen inside exchanges’ wallets
• token transfers are already enabled
• exchanges with significant DOT trading volume and which publicly stated that they will support denomination event — Okex, gate.io, MXC, Bilaxy, Huobi Global, Hotbit

Wallet support

Denomination support is granted in the official Polkadot JS Wallet (which also allows for token staking and on-chain governance). However, we weren’t able to find any official announcements regarding other wallets so we would recommend DOT holders to keep their DOTs inside the official wallet or on one of the exchanges listed above.

We are expecting more exchange listings to come in the near future and we believe that this fact would have a positive impact on DOT’s token price.

Stay tuned here as well as in our Facebook Group Polkadot unofficial!