The article examines ICP’s tokenomics model, balancing inflation and governance to support ecosystem sustainability. It explains how ICP employs a 5% annual inflation rate to fund network operations, contrasting with Bitcoin's fixed supply. The piece details ICP's deflationary aspects through transaction fee burns and cycles conversion. Governance is facilitated via voting neurons in the Network Nervous System, ensuring decentralized control. The cycles system efficiently allocates resources and networks usage through a standardized cost model. Accessible to developers and stakeholders, the article presents a structured insight into ICP’s strategic token distribution and governance framework. Keywords: ICP, tokenomics, governance, inflation, cycles system, resource allocation.
12/6/2025, 11:25:57 AM