The ongoing discussion around UTOPIA raises an important economic question: how well does this model align with the core tokenomics of the Internet Computer, and what impact might it have on neuron-holding investors?
First, it is important to note that the economic architecture established by the DFINITY Foundation is based on the cycles mechanism — the more the network is used, the more ICP is converted into cycles and burned. This mechanism creates deflationary pressure, which is critical for the long-term value of the token and for the interests of neuron holders.
UTOPIA partially changes this logic. The project is oriented toward enterprise infrastructure and uses a hybrid model, where a significant portion of the system operates in an isolated environment. In such cases, resource consumption does not require the use of public cycles, and therefore ICP is not burned at the same level as in traditional dApps.
At the same time, certain trends are emerging that appear concerning for investors. Over approximately the past two months, daily cycles burn has averaged around $5,000, indicating that increased network usage is not translating proportionally into token burn. In parallel, there is consistent sell pressure in the market — nearly 1 million ICP tokens are being put up for sale on exchanges almost every day, increasing downward pressure on price.
This combination creates the core issue. On one side:
Weak or stagnant burn
Limited deflationary effect
On the other side:
Continuous sell pressure in the market
As a result, the balance that ICP’s economic model relies on is disrupted — demand growth is not keeping up with supply.
Under these conditions, neuron holders who expect ecosystem expansion to automatically translate into increased token value find themselves in a less favorable position. Their returns and positioning depend not only on network usage, but on whether that usage is actually driven through cycles, and whether market supply and demand remain balanced.
Particularly critical is the so-called “decoupling” effect — where platform usage grows, but the token economy does not follow at the same pace. Models like UTOPIA reinforce this risk, as infrastructure revenues can increase without a corresponding rise in ICP token demand.
In conclusion, while UTOPIA does not directly violate the rules of the Internet Computer, under current conditions it amplifies a structural imbalance: weak burn combined with strong sell pressure. This dynamic negatively affects neuron-holding investors and increases the risk that the token’s economic model will fail to fully capture the growth of the ecosystem in its value.
Unfortunatly i remembered my password to this forum.
You are totally right, as much i love ICP tech, token will never grow, as its not meant to do it. Cloud engines will burn Dominic ICP stack, it wont be bought from market. If we calculate on how many engines will be launched, burn will remain low. Focus of it will be personal gain.
Caffeine, as we know added 3 apps limit to basic users, now they removed top up option for them too. It looks like M70 passed, no need to show burn what caffeine made, back to 4k-5k usd burn a day.
If all those systems would have built to serve ICP token (kept as non profit), we would be 50 bil usd mcap.
For me personally, best option is to unstake what i have. Returns from it is so small, few trades can cover whatever it makes. I dont expect ICP to go over 15 usd at bull market.
Thats funny. You actually think ICP will go to 15 dollars during a bull run? loooool. last historic bull run that had Bitcoin reach 130.000 dollars had ICP fall down to 3 dollars. I doubt ICP will ever reach 5 dollars again…