İcp neuron stake

something caught my attention, where does it come from so much icp that is constantly staked, to whom does it come from, does dfinity produce icp all the time, what will be the end of it?

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This will never end as the ICP token is inherently inflationary.
The approach where you have many replicas of the same data processed all the time cannot win against AWS profitability. To encourage developers to move to IC, I expect further inflation. In this ecosystem, only projects that will be profitable to maintain due to the real security required, which is ensured by dispersion, will survive in the long term.
I just wonder who will be the first (and if) to say: “Now we’re minting rewards to nodes, but not bigger than what ICP was burned in the last month” - it sounds logical, but with the current profitability quite funny :joy:

Is the nns app down at moment

That is small change compared to this one :wink:

Just look at that voting power and daily rewards numbers.


what is the reason for it

No idea, probably to enforce the 20 year old roadmap.

The means of this neuron were transferred to it, but NOT minted directly. It seems to me that a transaction mixer may have been used here, or it was simply a purchase by whale :whale:

If you want to learn about the tokenomics of the Internet Computer, I suggest starting with this page.

In short, there are inflationary and deflationary mechanisms at play.
Overall, the Internet Computer has been inflationary since genesis but the deflationary pressure grows as usage of the Internet Computer increases. Here is a nice article with some projections about the future based on current growth rates.

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The problem is that currently the burning ICP tokens does not increase significantly, which cannot be said about the minting ICP as rewards for nodes.
The price of electricity (taking into account the energy consumption from the ICP Dashboard at the level of 300 kW) is about 10% of the remuneration. I’m curious how much (apart from servicing and taxes) validators earn per year (ROI), and how it is with the remuneration for ‘Awaiting Subnet’ nodes. Is it different from nodes actively running on subnets? Is it possible to make the minting of tokens dependent on burnt ICPs in any way?

Well thank you so very much.

Let me rephrase that so it doesn’t come out as a personal attack. 7,6 million USD worth of ICP just staked with no dissolve delay for 8 years with a monster of a voting power … how is that a " mechanism at play ", sorry, excuse me and thank you for the reply.

what does that have to do with the current post ?

The original poster asked whether DFINITY produces ICP (the answer is “no”), which led me to believe that providing a few links to tokenomics material may help.

I’m not entirely sure what your question is. There are quite a few people who lock their ICP in 8-year neurons just to maximize their gains. If you’re wondering about the amounts, yes, there are apparently some people who are investing substantial amounts - which is great because it makes the NNS more secure.

It’s maybe not clear to everybody but having more ICP locked in the NNS does not increase inflation. The total amount being paid out is a function of the total supply (and time since genesis). Each neuron that actively votes simply gets a share of this amount, which depends (linearly) on its voting power.


Do the same as with vote bounties that the amount of ICP burned is linearly minted for node operators. Then their quantity would be consistent with the current demand indicated by the total burned ICP. Why have developers covered only 1.7% of the used computing power so far, and the rest 98.3% has been covered by inflation that depletes all of us ICP wallets?

There are ideas in this direction but, obviously, it is not so simple. If there is a fixed amount that is split among the node providers, they may not be able to cover their expenses if the number of node providers is too large. In other words, it would have a negative impact on scalability.

It is certainly worthwhile to think of ways to improve tokenomics—and people are thinking about it at DFINITY and in the community—but there are many factors to consider. Regarding the rewards paid to node providers, note that voting rewards have had a significantly bigger impact on inflation than node provider rewards at a ratio of more than 10:1 (as you can see on the dashboard).

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