The profit model or core value of the ICP project is that the number of cycles burned by DAPP exceeds the number of additional ICP issued to nodes and votes. If the current node is reasonably at full load, can deflation be achieved? It is obvious that if deflation cannot be achieved in this situation, reducing nodes and increasing DAPP cannot achieve deflation. To reduce nodes, the performance does not meet DAPP. If increasing DAPP consumes CYCLES, nodes must be increased proportionally, that is, the number of additional nodes must be increased. So deflation cannot be achieved. That is to say, deflation can never be achieved.
There is no detailed calculation of the data relationship above, but if this is the case, we must find a way to increase the consumption of ICP in order to realize the value of ICP (essentially, IC purchases node services and sells them in the form of computing power and storage, and the price difference is enough to become profit - achieved through deflation). Even if the above data relationship can achieve deflation, innovative means can still be used to further achieve deflation in ICP - deflation is the way of realizing profit value. Here are some suggestions:
- The increase in price can significantly reduce the increase in node issuance, so it is necessary to enhance the attractiveness of ICP. So the promotion of IC must be done.
- Establish an IC treasury, whose assets belong to all ICP holders.
- Independent functional modules derived from ICP holders (developers of the foundation) can be SNS-launched , with a reasonable proportion belonging to the treasury.
- When the ICP price is low, IC treasury’s income is used to purchase and destroy ICP through AI agents. Low prices can be defined, proposed for voting, or a combination of both.
The introduction of the above policies will greatly improve the impression of ICP on investors, enhance its attractiveness, push up ICP prices, and accelerate the pace of ICP deflation.