ICP Tokenomics evaluation by economists

Economics as well as technology is desperately needed.
It’s sad to ignore economic contradictions while emphasizing technology.
Liquidity escape, steady dumping
A currency that has lost trust is worthless, no matter how good the technology.
ICP should be evaluated fairly by economists to see if it is possible to create a sustainable ecosystem.
It’s devastating to just watch while the value drops by 99%.
Dfinity has failed in how to properly combine technology and economics.

I propose a tokenomics evaluation by economists who understands blockchain

What are the thoughts of others, including Dfinity?

I have a master’s degree in economics. But to be honest I think you’d want a PhD economist for an expert here.

I have a bachelors in Math but I am pretty sure that what is required here is closer to politics than economics.

We have a bad overhang of supply and a bunch of potential new investors which COULD create more than enough demand…but most investors dont try to pick a bottom…they let one form and then get in.

We need a proposal which ‘puts the bottom in’ so those who buy ICP dont have to do so based on faith in a down trend.

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Inflation is not a monster, it is a tool to control those who abuse a system.

Inflation does not appear out of nowhere but is introduced to control and reset balance.

While many feel that you should use inflation to increase profits the opposite is true that inflation is used to slow down overuse.

If like the current situation where Governments have increased interest rates then prices increase and affordability goes down.

The end result is that human beings do a lot of complaining that they are being hurt.

So when I see the complaints from neuron owners that inflation is causing a problem then I can see that INFLATION is working as intended.

You can raise the price of ICP to the moon but is it a true value?
This is a young project and needs time to create value to reflect the price and that can be done through hard work and commitment not manipulation.

Most points raised about how to use inflation to manipulate price are correct but in the long term wrong and not the intended reason for inflation.

New investors will not appear just because and while we have many mathematical geniuses, you can not control human nature to do what is mathematically right and yes this is more about politics than common sense.


If you have 100 guys staking coins and all of them are getting 400% APY, sure you print a lot of new tokens, but the value each has stays the same.
You have to cut these from your screenshot and only show tokens minted for node providers.

Here is a crazy idea, so dumb it may even be awesome :wink: If your sole purpose is deflation, then you don’t really need to develop anything.

You can slash all accounts every day for 2% and more if they aren’t staking. It will break all charts, CEX systems and make it impossible to short the coin with existing tools. Price charts will go up and be unstoppable.

Ofc that’s not the point. Adding value and making something useful is.

I actually think something like this is a good idea, at least for a temporary situation. That or delay all seed unlocks for the next few years.

I think CEXes won’t support that and will delist the token right away.
Imagine, today you have 20tokens and in few days they are 10 :slight_smile: Not to mention accountaints will be horrified. Finally you end with one token to rule them all.

Perhaps instead of giving ICP rewards for governance, NNS could reward another token with a different utility. This should make tokenomics less in favour of shorters

As far as we are playing dumb, here’s a even dumber idea. Increase the rewards at the highest tier (8 year) to 100%. As soon as we get everyone (or maybe 70%) to stake at 8 years, revert it back to 10%. :slight_smile:

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Do you have better suggestions, o master tokenomist? If you do, put it in a proposal and see where the idea takes it?

I actually like bending tokenomics even more to reward 4+ year stakers only.