Polkadot Implements Deflationary Model and Expands DOT Payments to 20M Merchants in Southeast Asia
Polkadot has completed its Westend Asset Hub migration and approved RFC #0146 to burn 80% of transaction fees on the Relay and System chains, applying deflationary pressure to DOT. A new AEON integration enables DOT payments with over 20 million merchants across Southeast Asia. Key ecosystem updates include Acurast’s battery monitoring feature, Astar dApp Staking applications, Integritee’s ChatGPT-powered messenger, and Umanitek’s Guardian AI for child protection. Peaq launched a Yapper leaderboard with 0.55% of its genesis supply as rewards. Mythical Games partnered with OneFootball for FIFA Rivals, and several new governance proposals and funding votes are underway.
Bullish
Burning 80% of transaction fees reduces DOT’s circulating supply, creating sustained deflationary pressure and potentially supporting price appreciation. Meanwhile, enabling DOT payments at over 20 million Southeast Asian merchants significantly boosts on-chain utility and adoption. Historical precedents like Ethereum’s fee burn (EIP-1559) have driven positive market sentiment. In the short term, traders may react bullishly to deflation mechanics and merchant integration news, while long-term network growth and utility adoption underpin a positive outlook.