Internet Computer (ICP) טוקנומיקה

The Internet Computer (ICP) utilizes a sophisticated tokenomic model designed to facilitate decentralized governance, provide a medium of exchange, and power the network's computational resources. The system is governed by the Network Nervous System (NNS), an algorithmic DAO that manages everything from protocol upgrades to the economic parameters of the ICP token.

Issuance Mechanism

The issuance of ICP is primarily driven by inflationary rewards distributed to key network participants. As of May 2024, the total supply has grown to approximately 518.98 million ICP through two main inflationary channels:

• Voting Rewards: Tokenholders who stake their ICP in "neurons" and participate in governance receive rewards. The estimated annual inflation rate for these rewards was approximately 6.91% in May 2024. This rate is designed to follow a quadratic formula, eventually decreasing to 5.00% eight years after the network's Genesis.
• Node Provider Rewards: Node providers receive ICP as remuneration for operating the hardware that runs the protocol. These rewards are calculated based on the node's geographic location and hardware specifications. To account for real-world operating costs, the total inflation for node rewards is adjusted based on a 30-day moving average price of ICP in Special Drawing Rights (XDR).

Allocation Mechanism

The initial allocation of ICP tokens was distributed across several groups to ensure a diverse ecosystem. Notable allocations included:

• Seed Round (Feb 2017): Raised $3.9 million from 370 participants at a price of approximately $0.03 per token. These participants received their tokens at Genesis but were required to have them staked in 49 different neurons with varying dissolve delays.
• Airdrop Participants: Approximately 3.76 million ICP (0.80% of the initial supply) were allocated to early community members. These tokens were distributed on a monthly schedule over one year starting from the mainnet launch on May 10, 2021.
• Ecosystem Grants: The DFINITY Foundation has distributed over $6.25 million in grants to 239 projects globally to foster development on the platform.

Usage and Incentive Mechanism

ICP serves four primary functions within the ecosystem:

1. Governance: Tokenholders stake ICP to create neurons, allowing them to vote on proposals and earn rewards.
2. Gas (Cycles): ICP can be burned to create "cycles." The network uses a Reverse Gas Model, where developers—not users—pay for computation and storage. One XDR worth of ICP always burns to create exactly one trillion cycles, ensuring stable pricing for developers regardless of ICP's market volatility.
3. Node Remuneration: ICP is used to pay the independent node providers who maintain the network's physical infrastructure.
4. Medium of Exchange: ICP is used for transactions, such as participating in decentralization swaps for new DAOs (SNS) or paying for goods and services like NFTs.

Locking Mechanism

To participate in governance, tokens must be locked in a neuron. The locking mechanism is defined by several key parameters:

• Minimum Stake: A minimum of 1.00 ICP is required to create a neuron.
• Dissolve Delay: This is the "notice period" required before tokens can be withdrawn. To be eligible for voting rewards, a neuron must have a dissolve delay of at least six months. The maximum delay is eight years.
• Voting Power: A neuron's influence is calculated using the formula:
  • Voting Power = (ICP staked + maturity staked) x Dissolve Delay Bonus x Age Bonus
• Bonuses: A six-month lock provides a 1.06x bonus, while an eight-year lock provides a 2x bonus. Additionally, an "Age Bonus" of up to 1.25x is earned by neurons that remain locked without dissolving for four years.

Unlocking Time and Schedule

The unlocking of ICP tokens follows a structured schedule, particularly for early participants and airdrop recipients. The "dissolving" process is the primary way tokens are unlocked from governance.

Historical and Future Unlock Schedule

The following table outlines the monthly unlock events and the percentage of the total unlock process completed:

The unlocking of neurons has been the largest contributor to the circulating supply since the network's inception. As shown in the data, the final tranches of the initial allocations are scheduled to be fully unlocked by May 2025.