When the ICP is converted to cycles, will it be destroyed or will it be cast at the current exchange rate based on the cycles consumed by the world computer. The ICP is used to reward ICP voting rewards and node operators, and the real destruction can only be destroyed when the ICP is transferred.
ICP is burnt by converting it into cycles.
Cycles are then consumed by canisters (aka smart contracts hosted on IC). When canisters execute code in response to user requests cycles are burnt.
At present, the number of ICs burned is very low, but the benefits of casting are very high…If the IC pledge income is limited to the inflation rate of return, how does the current 28% come from? Is the current pledge amount less than 35.7%? It seems that the total amount of pledge of the foundation has exceeded this number!
I assume by “casting” you mean “staking”. Yes, the burn rate cannot and thus does not rigidly track the mint rate. Burn rate is highly variable and nothing can be assumed of it. It works both ways i.e. when the IC usage is high more ICP will be burnt than is minted (and vice-versa - the case you are referring to).
Mint-rate and burn rate need not be equilibrium. It’s important to note that ICP has 2 use-cases.
- Governance by locking up ICP in neurons (Lock ICP)
- Gas for canisters. (Burn ICP)
As it stands a large percentage of ICP is locked in neurons. Please have a look at this article
Are the rewards we currently receive will be distributed as soon as the minting is completed on the same day, or will the minting completed within a certain period of time be distributed on a daily basis?
I converted my ICP into cycles instead of creating a neuron. Is there a way I can convert it back to ICP?
If I remember correctly, when the ICP is converted into a cycle, it is irreversible, and the cycle cannot be converted into ICP… because the cycle rate for conversion is different when the price of ICP is different, and it is the developer who keeps it. The cost used is stable, and will not affect the periodic use cost with the fluctuation of the ICP price.
OK Thanks. Is there a way I can send the cycles to a developer?