Polkadot Price To Surge? Key Vote Advances Ahead Of JAM Upgrade

The Polkadot price remains in a tight range on Sunday, Aug. 24, as a golden cross pattern formed, and the community voted on its supply and inflation reduction measures. 

Polkadot community vote continues

Polkadot (DOT) was trading at the psychological level of $4, up 35% from its lowest point this year. 

The DOT crypto price has remained in a tight range over the past few days as the community debates its tokenomics. Most of these investors have been frustrated with its weak performance as it hovers near its all-time low. 

The community is voting on three proposals: hard pressure, soft pressure, and growth pressure. The hard pressure proposal aims to implement a 2.1 billion DOT supply, accompanied by a significant inflation reduction of 53.6%, and a stepped supply schedule commencing in March next year. 

Its main implication is that it will reduce the current staking yield from 14% to a significantly lower number over time. One concern among its proponents is that stakers typically sell their rewards, creating pressure on the sale of DOT. 

The soft pressure proposal suggests a more gradual approach with a higher threshold of 3.14 billion DOT supply. It is seen as a less aggressive approach. 

The growth proposal suggests a 2.1 billion cap, with a 33% inflation reduction every two years and 50% staking APR cut in this period. Data shows that the hard cap proposal is winning, although this could change towards the end of the vote. 

The other major catalyst for the Polkadot price is the proposed Join-Accumulate Machine (JAM) upgrade. 

This upgrade, proposed by Polkadot creator Gavin Wood last year, will evolve from a parachain-focused blockchain into a decentralized supercomputer that supports applications in various industries, such as DeFi. 

Although the upgrade date has not been announced, it is likely to occur soon now that Wood has returned as CEO. 

Polkadot price technical analysis

The daily chart shows that the DOT price formed a double-bottom pattern at $3.256, its lowest levels in April and June this year. Its neckline is at $5.375. 

The Polkadot price is also about to form a golden cross pattern. As the spread between the 50-day and 200-day Weighted Moving Averages narrows, it signals one of the most popular bullish chart patterns. 

DOT crypto has also formed a symmetrical triangle whose two lines are about to converge. Therefore, the most likely scenario is where it stages a strong comeback, potentially to $5.374, its highest swing in May.