Polkadot (DOT) Set to Undergo Redenomination, Here’s All You Must Know
Decentralized web network Polkadot (DOT) will undergo a “redenomination” of its tokens on August 21, which will see token holders receive more tokens but the total value unchanged.
As per a blog, token transferability was enabled on August 18, exactly at block number 1,205,128. This occured at approximately 16:40 UTC. This will not change the denomination of DOT (old) which still represents 10**12 Planck, the blog noted.
The redenomination will occur in approximately two days, at around 16:40 UTC on August 21 at block number 1,248,328 where each New DOT will represent 10**10 planck, 100 times less of an amount.
However, low DOT prices might fool investors and they must be wary of “suspiciously” low ones. Though most exchanges will represent DOT accurately, said Polkadot, there is a chance that some unscrupulous exchanges may choose to enact the redenomination prior to the date agreed by the Polkadot community, and thus report the apparent price at approximately 100 times lower than the actual market price.
The firm said it believes such action is irresponsible, possibly constituting fraud through deceptive advertising and certainly puts Polkadot stakeholders at risk.
“As a responsible member of the Polkadot ecosystem, Web3 Foundation will make such a proposition as unattractive as possible.”
Polkadot added it is now decentralized and permissionless, and they can do “little” against a determined third party. As always, “we urge the Polkadot community to be careful, vigilant, and communicative,” it said.
Polkadot is built to connect private and consortium chains, public and permissionless networks, oracles, and future technologies that are yet to be created. Polkadot facilitates an internet where independent blockchains can exchange information and transactions in a trustless way via the Polkadot relay chain.
As BTCManager reported earlier, Polkadot makes it easier than ever to create and connect decentralized applications, services, and institutions. By empowering innovators to build better solutions, we seek to free society from its reliance on a broken web where its large institutions can’t violate our trust.
The Web3 Foundation is partnering with best-in-class entities to build Polkadot and foster the development of the services and applications that will run on it.
Researchers from Inria Paris and ETH Zurich, developers from Parity Technologies, and capital partners from crypto-funds such as Polychain Capital are all working together to develop a superlative realization of Web3, with Polkadot at its core.