Polkadot Burns DOT for JAMKB, Price Rises to 0.9037

Polkadot will burn all DOT paid for JAMKB, the limited storage space on the new JAM network. Referendum 1926 has approved this proposal, causing the DOT price to rise to 0.9037, over 19% higher than last week. The proposal ensures that all DOT from the sale, lease, or rental of JAMKB permanently disappears from circulation, without the money ending up in the network's treasury. JAMKB offers storage space to projects at market price, contributing to the reduction of DOT supply. Currently, 1.7 billion DOT are circulating with a total value of 1.54 billion dollars. Every DOT burned through JAMKB permanently exits circulation, giving remaining holders a larger share in the network. The impact of this burning depends on the demand for JAM resources. A rise to 100 times the current value would mean a market value of 154 billion dollars, which seems unrealistic for a project currently valued in the billions. DOT reached a low of 0.7270 this month and has recovered by nearly 25%. The daily volume of 122 million dollars remains small, meaning a large order could significantly affect the price.

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