The DFINITY Foundation has announced an ambitious plan, "Mission 70," aiming to reduce the inflation rate of its Internet Computer Protocol (ICP) tokens by 70% by the end of 2026. This strategic move, detailed in a new white paper by founder Dominic Williams, seeks to transition ICP from a subsidy-driven model to a self-sustaining economic engine. Following the announcement, ICP's price surged, with intraday gains exceeding 30%.
The plan involves a dual approach of reducing token supply and increasing demand. On the supply side, DFINITY intends to cut governance voting rewards and node provider incentives, aiming for a 44% reduction in token issuance. On the demand side, the foundation is betting on the AI sector, particularly through its "Caffeine AI" platform, which will consume ICP tokens as "Cycles" for computational activities, fostering a deflationary effect.
Despite the technological advancements and high development activity, DFINITY faces challenges, including past market manipulation allegations and a smaller DeFi ecosystem compared to competitors. The success of "Mission 70" hinges on maintaining node provider participation and achieving significant growth in AI-driven demand for ICP tokens.
DFINITY Unveils 'Mission 70' to Slash ICP Inflation by 70% by 2026
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