Internet Computer (ICP) Tokenomics
Internet Computer (ICP) Tokenomics & Price Analysis
Explore key tokenomics and price data for Internet Computer (ICP), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
Internet Computer (ICP) Information
The Internet Computer provides the first true “World Computer” that can run any Web 2.0 system or service, and web3 services, entirely on-the-blockchain, including demanding web3 social media, without any need for centralized traditional IT such as cloud computing services. On the Internet Computer, services like social networks can be completely controlled by community DAOs, because they run entirely from the blockchain, with the aim of making users owners and part of the team, and enabling decentralized fundraising and more sophisticated tokenization. The blockchain hosts advanced smart contracts with ground-breaking new features, which include securely serving interactive web experiences directly to end users, processing and storing data with efficiency comparable to traditional IT, and directly creating transactions on other blockchains, such as Bitcoin.
In-Depth Token Structure of Internet Computer (ICP)
Dive deeper into how ICP tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Issuance Mechanism
- Inflationary Model: ICP began with an initial supply (exact number not specified in the available data, but as of May 2024, the total supply is ~519 million ICP). The supply increases through two main inflationary reward mechanisms:
- Node Provider Rewards: ICP is minted monthly to compensate node providers, with the amount determined by the Network Nervous System (NNS) and based on the 30-day moving average price of ICP in Special Drawing Rights (XDR).
- Voting Rewards: ICP holders who stake tokens in the NNS to create "neurons" receive daily inflationary rewards (maturity) for participating in governance. The annual inflation rate for these rewards was ~6.91% as of May 2024, projected to decrease to 5% over eight years.
Allocation Mechanism
The initial allocation of ICP tokens was distributed as follows (all percentages are of the initial supply):
| Allocation Description | Recipient | Unlock Start Date | Unlock Mechanism | Amount | Vesting Periods |
|---|---|---|---|---|---|
| 18% allocation | Team Members | 2021-05-10 | 100% unlocked at TGE | 95,571,000 | 1 (instant) |
| 0.48% allocation | Initial Community & Developer | 2021-05-10 | 100% unlocked at TGE | 2,548,560 | 1 (instant) |
| 3.79% allocation | Strategic Partnerships | 2021-05-10 | 100% unlocked at TGE | 20,123,005 | 1 (instant) |
| 23.86% allocation | DFINITY Foundation | 2021-05-10 | 100% unlocked at TGE | 126,684,670 | 1 (instant) |
| 0.22% allocation | Node Operators | 2021-05-10 | 100% unlocked at TGE | 1,168,090 | 1 (instant) |
| 4.26% allocation | Internet Computer Association | 2021-05-10 | 100% unlocked at TGE | 22,618,470 | 1 (instant) |
| 2.4% allocation | Advisors & Other Third-Parties | 2021-05-10 | 100% unlocked at TGE | 12,742,800 | 1 (instant) |
| 9.5% allocation | Early Contributors | 2021-05-10 | 100% unlocked at TGE | 50,440,250 | 1 (instant) |
| 4.96% allocation | Pre-Sale | 2021-06-10 | 1 month cliff, 12 month vesting | 26,335,120 | 12 (monthly) |
| 24.72% allocation | Seed | 2021-06-10 | 1 month cliff, 48 month vesting | 131,250,840 | 48 (monthly) |
| 0.8% allocation | Community Airdrop | 2021-06-10 | 1 month cliff, 12 month vesting | 4,247,600 | 12 (monthly) |
| 7% allocation | Strategic Investors | 2021-06-10 | 1 month cliff, 36 month vesting | 37,166,500 | 36 (monthly) |
Usage and Incentive Mechanism
- Governance: ICP holders can stake tokens to create "neurons" in the NNS, which grants voting power and the ability to propose and vote on governance proposals. Voting rewards are distributed to incentivize participation.
- Node Provider Rewards: Node operators are compensated in ICP for running network infrastructure.
- Burning for Cycles: ICP can be burned to mint "cycles," which are used as gas for computation and storage in canister smart contracts.
- Medium of Exchange: ICP can be transferred between accounts and used in decentralized exchanges.
- Transaction Fees: A small portion of ICP is burned as a transaction fee for transfers.
Locking Mechanism
- Staking (Neuron Creation): ICP must be locked for a minimum of 6 months and a maximum of 8 years to participate in governance and earn rewards.
- Dissolve Delay: The lock duration (dissolve delay) can be increased at any time, up to 8 years. The longer the lock, the greater the voting power (with bonuses for longer durations and neuron age).
- Unlocking: To unlock, the neuron must be set to "dissolving," which starts a countdown equal to the remaining dissolve delay. Once the countdown reaches zero, the ICP can be disbursed.
Unlocking Time
- Vesting Schedules: For allocations with vesting, tokens unlock after a cliff period, then linearly over the vesting period (e.g., monthly over 12, 36, or 48 months).
- Staked ICP: Unlocking is determined by the dissolve delay set by the user (6 months to 8 years). The process is not instant; the countdown must complete before tokens are accessible.
Additional Notes
- Burn Mechanisms: ICP is burned when converted to cycles and as transaction fees.
- No Claims on Profits: ICP does not confer claims on capital, profits, or legal rights in the DFINITY Foundation or Internet Computer Association.
- Concentration: As of May 2024, the top 10 addresses hold ~14.39% of the total supply, with the largest holding ~5.2%.
This comprehensive overview covers the Internet Computer's token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms, with a detailed table for allocations and vesting.
Internet Computer (ICP) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of Internet Computer (ICP) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of ICP tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many ICP tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand ICP's tokenomics, explore ICP token's live price!
How to Buy ICP
Interested in adding Internet Computer (ICP) to your portfolio? MEXC supports various methods to buy ICP, including credit cards, bank transfers, and peer-to-peer trading. Whether you're a beginner or pro, MEXC makes crypto buying easy and secure.
Internet Computer (ICP) Price History
Analyzing the price history of ICP helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
ICP Price Prediction
Want to know where ICP might be heading? Our ICP price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
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Amount
1 ICP = 3.01 USD