Flywheel:
ICP value grows through a flywheel where real network usage burns supply, while long-term capital commitment reduces liquidity — each reinforcing the other.*
Explanation:
There are two primary mechanisms for increasing the value of ICP:
- Network Utilization (Demand-Side)
- ICP is converted into cycles and burned to run canisters and applications.
- More real usage ⇒ more ICP burned ⇒ reduced circulating supply.
- Capital Commitment (Supply-Side)
- Growth in investors, builders, and users who hold, stake, or lock ICP (e.g., via neurons).
- More ICP locked ⇒ reduced liquid supply and stronger long-term alignment.
How they catalyze each other
- Usage drives conviction
Real applications burning cycles demonstrate utility, which attracts investors and long-term holders. - Locked capital enables builders
A strong, committed holder base stabilizes the token, funds development, and gives builders confidence to deploy serious applications. - Positive feedback loop
More apps → more cycle burn → stronger token economics → more holders → more funding and attention → more apps.
In these situations… you always have to leave something on the table
This is not just about: Dfinity - Developers - Bag Holders -
Its an orchestra of everyone coming together(a large click), and deciding to put their differences aside, give some / take some, working together to achieve the greater good which will benefit everyone.
Update
Ultra Tip Bot was a meme app/game on ICP where users send micro-transactions to each other.
Limited tests at 0.001% capacity ran successfully over a few hours—the app performed well, and ICP transaction metrics spiked by 300% during the test. The demo was then stopped for evaluation.
The game had potential to create world record amounts of transactional activity, millions of transactions with trillions in volumes - weekly.
Mechanics of the game may negatively affect user experience on the IC ledger and for this reason the idea will not be continued.
RIP