Node Provider Inflation Spiral

[plsak]

I believe for this topic might be convenient checking also previous discussions:

Community Proposal: Assessing node inflation based on token price

According to Kyle’s predictions, if ICP prices fall below $3.5 USD, the incentives for node providers will likely cause ICPs to enter a death spiral. ICP prices are approaching this dangerous boundary due to the depletion of liquidity and loss of confidence in the crypto market. Therefore ICPL.app urgently calls the community’s attention to the reward parameters for node operators, the proposal’s demands include： The DFINITY Foundation should produce a report on node rewards as soon as possi…

Long Term R&D: Tokenomics (proposal)

Here is the text of this motion proposal, thus far: Tokenomics Project Proposal 1. Objective Evolve Tokenomics on the Internet Computer to best incentivize participation, both for those locking up their tokens to participate in voting activities, and those who will use tokens to purchase cycles and/or support various market activities. 2. Background On May 10, 2021, the Internet Computer was launched, along with a ledger and governance system (NNS), and ICP tokens were brought to life. Wit…

• Proposal: 35652 - ICP Dashboard
  
  

I have also a strong feeling that via a proposal the number of ICP that can be minted as Node Provider Rewards was limited (to prevent inflation spiral) but didn’t find it so far (I think @diegop was involved…?).

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Update: just found it

• Proposal: 64141 - ICP Dashboard
  
  
  • as current monthly total Node Provider Rewards are higher I guess something was changed in between as the proposal (monthly limitation to 100k ICP) passed

    • @Kyle_Langham

      Last month there was ~580k ICP in node provider rewards.

    • or it’s limitation per provider so we’re still safe