DFINITY Updates Internet Computer Model With ICP Token Burn Mechanism

DFINITY Foundation’s revised model channels most cloud engine revenue to node providers while lowering ICP supply, with European promotion efforts underway by the Node Providers Association.

ICP

Summary

On February 21, DFINITY Foundation announced an economic model update for the Internet Computer. Under the new structure, 80% of cloud engine revenue will be allocated to node providers, and 20% will be used to burn ICP tokens, reducing token supply. The Node Providers Association is preparing to promote the service across Europe, aiming to increase enterprise adoption.

Terms & Concepts
  • Internet Computer: A blockchain-based computing platform by DFINITY designed for hosting scalable applications and smart contracts directly on the Internet.
  • Node Provider: An operator that supplies computing infrastructure for the Internet Computer network in exchange for rewards.
  • Token Burn: The process of permanently removing tokens from circulation, typically to reduce supply and potentially increase value.