How are node "cash equivalent ICP rewards" determined?

According to Talk | Internet Computer: Tokenomics (Dominic Williams) - YouTube

And many other sources, node providers are paid a “cash equivalent reward” in ICP to compensate them for running the network.

As the price of ICP falls, node providers get paid more ICP to keep the value equivalent in fiat terms, and inversely so for price increases.

My question is: how is this price of ICP determined?

The wiki describes things well:

The rewards are specified in XDR, and are converted into ICP based on the average exchange rate over the last 30 days.

That 30-day average can be found on the IC dashboard home page.

How does the cycle minting canister know the conversion rate of XDR to ICP?

As far as I’m aware, it’s not an open sourced canister, so it could be someone just updating a config file for all I know.

How can we prove that this conversion rate is untamperable?

An ICP/XDR Conversion Rate proposal is voted on and executed every 10 minutes.

There are changes coming up in the way this works.


This seems a smart approach during beginning stage of the datacenters getting established, to avoid risks of token price and speculation affecting node providers, I really like this concept. But for how long the Dfinity foundation will be able to keep up the payouts in a way which will cover worldwide datacenter expansion? It is an extremely costly business, to try and incentivize ALL the node operators, like AWS/Netflix etc’ are paying all their bills. As it grows, the network will become too expensive for all current circulating supply of ICP, to maintain, even if the foundation has large reserves of both cash and ICP tokens, what is the current prognosis for sustaining the growing network financially if there will be not enough Cycles demand in the short term? (let’s say 1-2 years, more nodes up than demand to use canisters and pay for all that)

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