Internet Computer (ICP) Tokenomics
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.
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.
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
- Initial Supply: The initial total token supply of ICP was 469 million.
- Inflationary Rewards: The total supply has increased to approximately 519 million (as of May 28, 2024) through two main inflationary reward mechanisms:
- Node Provider Rewards: Inflationary ICP rewards are used to compensate node providers, determined by the Network Nervous System (NNS).
- Governance Rewards: ICP holders who stake tokens in neurons and participate in governance receive rewards, which are also inflationary.
Allocation Mechanism
| Allocation Recipient | % Allocation | Unlocking Mechanism | Unlock Start Date | Unlock Granularity | Amount per Period | Unique Unlock Periods |
|---|---|---|---|---|---|---|
| DFINITY Foundation | 23.86% | 100% unlocked at TGE | 2021-05-10 | instant | 126,684,670 | 1 |
| Team Members | 18% | 100% unlocked at TGE | 2021-05-10 | instant | 95,571,000 | 1 |
| Early Contributors | 9.5% | 100% unlocked at TGE | 2021-05-10 | instant | 50,440,250 | 1 |
| Internet Computer Association | 4.26% | 100% unlocked at TGE | 2021-05-10 | instant | 22,618,470 | 1 |
| Strategic Partnerships | 3.79% | 100% unlocked at TGE | 2021-05-10 | instant | 20,123,005 | 1 |
| Advisors and Other Third-Parties | 2.4% | 100% unlocked at TGE | 2021-05-10 | instant | 12,742,800 | 1 |
| Node Operators | 0.22% | 100% unlocked at TGE | 2021-05-10 | instant | 1,168,090 | 1 |
| Initial Community and Developer | 0.48% | 100% unlocked at TGE | 2021-05-10 | instant | 2,548,560 | 1 |
| Community Airdrop | 0.8% | 1 month cliff, then 12-month vesting | 2021-06-10 | monthly | 4,247,600 | 12 |
| Pre-Sale | 4.96% | 1 month cliff, then 12-month vesting | 2021-06-10 | monthly | 26,335,120 | 12 |
- TGE: Token Generation Event
Usage and Incentive Mechanism
- Governance: ICP is staked in "neurons" via the NNS application. Staked ICP must be locked for a minimum of 6 months and a maximum of 8 years to receive voting power and propose governance changes.
- Voting power is determined by the amount of ICP staked, the length of the dissolve delay (lock period), and the age of the neuron (how long it has been staked).
- Rewards are distributed to neuron holders for participating in governance.
- Network Operations: ICP can be converted into "cycles," which are used to pay for computation and storage on the network (fueling canisters, the Internet Computer's smart contracts).
- Ecosystem Utility: ICP is used in dapps, for NFT purchases, tipping, and other ecosystem activities.
Locking Mechanism
- Staking in Neurons: ICP holders can lock tokens in neurons for governance participation.
- Minimum Lock: 6 months (grants a 1.06x dissolve delay bonus)
- Maximum Lock: 8 years (grants a 2x dissolve delay bonus)
- Age Bonus: Up to 1.25x for neurons locked for 4 years or more
- Neuron Commands: Users can start or stop dissolving (unlocking) at any time, increase the dissolve delay, or disburse ICP once the lock period ends.
Unlocking Time
- Immediate Unlocks: Most allocations (DFINITY Foundation, Team, Early Contributors, etc.) were unlocked 100% at TGE (May 10, 2021).
- Vested Allocations: Community Airdrop and Pre-Sale had a 1-month cliff followed by 12 months of monthly vesting, starting June 10, 2021.
- Staked ICP: Unlocking is determined by the dissolve delay set by the user (6 months to 8 years). Once the dissolve delay reaches zero, the neuron can be disbursed and ICP withdrawn.
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | Initial supply + inflationary rewards (node provider & governance rewards) |
| Allocation | See detailed table above |
| Usage | Governance (staking, voting), network operations (cycles), ecosystem utility |
| Incentives | Governance rewards, node provider rewards |
| Locking | Neurons: 6 months to 8 years, with dissolve delay and age bonuses |
| Unlocking | TGE for most, 1-month cliff + 12-month vesting for some, user-defined for staked ICP |
Key Takeaways:
- ICP's economics are designed to incentivize long-term participation in governance and network operation.
- The locking and unlocking mechanisms are flexible, allowing users to choose their commitment period and corresponding rewards.
- Most tokens were unlocked at launch, with a minority subject to vesting schedules.
- Ongoing inflation supports network security and governance participation.
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.
Why Should You Choose MEXC?
MEXC is one of the world's top crypto exchanges, trusted by millions of users globally. Whether you're a beginner or a pro, MEXC is your easiest way to crypto.
Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
Buy Internet Computer (ICP)
Amount
1 ICP = 5.062 USD