The Internet Computer - Overview of Token Economics

Dominic Williams (DFINITY) gives an overview of ICP, a governance token used in the management of the blockchain network created by the Internet Computer Protocol.
ICP is a governance token that allows users to participate in managing the Internet Computer network, and as such is a form of utility token.

[@roborat2000]

I just realized that Dominic Williams sounds just like Little Finger - Lord Baelish.

[@olamideolanrewaju4005]

And looks like him too.

[@warmanecasualpvp]

my first thought

[@mouadboughrous6155]

spot on!

[@ulhaqanwaar1]

@@olamideolanrewaju4005 I hope he doesn't think like him

[@DerperDaDerpa]

Hahaha funny

[@irszgatti]

I've been dissolving my own neurons for years.

[@KcDaugirdas]

Fancy graphics end and content begins at 1:13

[@finestonia]

Awesome project!

[@bzrthshm]

Revolutionary

[@KingOfShallots]

Very exiting !

[@srikark3532]

Super Revolutionary Idea!

[@justertuffy]

I'm new to crypto, just 2 months. What I can't understand is how anything can be truly decentralised when a person who hold more assets/coins/tokens has more power than someone who holds less. Its just another case of the more money you have the more power you have. When someone comes up with a system that restricts the amount of power/influence one holder has over another then we will see true DeFi. Or am I reading this completely wrong? Someone please help me understand.

[@invisiblian]

your way will not work. people with money will simply create a lot of wallets to vote you down. people with resources will always be the masters, people like you unfortunately will have to live with it. plain and simple.

[@markyzentana7540]

that's how the world works, but at least in crypto its decentralized anyone can participate and no one can just ban you. Unlike twitter or facebook(for example) they can ban you without any reasons bcoz they control the entire system.

[@ThePraaaaat]

The bit your missing is that everyone in defi earns at the same rate. In traditional finance the rich would gain more power and access with more wealth. It’s an “economy of scale” and This is what really widens the wealth gap

[@pipe7752]

@@ThePraaaaat good job

[@britishfan6138]

What will be the total token supply???

[@ciprianonu4711]

The best!

[@hocine_abbas]

Le meilleur projet jamais vu 💪🥰

[@ScoutToHunt]

so what's the incentive to convert ICP to cycles, if they are ultimately burned?

[@josephmorenoart]

It's an exchange for service users on the platform, kind of like paying for cloud use, except your using the open internet as a platform for whatever project you want to build! Revolutionary.

[@dragon9372]

Where can I pick some of this up

[@pavelprecechtel3590]

Year 2028 and Dfinity powered new internet. IT stack is now replaced by NNS and Internet Computer in a full manner. $ICP

[@rattle_]

How is the price pegged to 1CHF?

[@iamthelostsavant]

It isnt , they used CHF 'cause of the ICO mania in 2017 , and it was unjust to carry out an ICO in US , hence CHF ,i think

[@DziennaDawkaDyskomfortu]

👍👍👍

[@user-zv8lm8xo9u]

The 1TC is equivalent to 1XDR now, according to the official document (no longer 1 CHF). Does any body know when and why?

[@dapersan]

why Cycles are pegged to the CHF instead of any other asset/currency?

[@StefanBerreth70]

I‘m speculating that this is easier with the DFINITY foundation being legally registered in Switzerland

[@Jebcbeb]

It's not pegged to anything. They just claimed it was pegged to the value of ICP, therefore it was a "store of value". Even though it isn't pegged to ICP. Ask anybody in any wholesale market if this is true. They will tell you that it is not

[@chrispayseur6913]

It's actually pegged to the SDR which is a composite of the leading world currencies.

[@zxx5]

Icp, why wasn’t listed years back to the cmc, something is fishy.. seems like rich ppl were scooping ICP super cheap before public offer, then out of nowhere this pop up? So the poor ppl (us) pump for the rich or fortunate early buyer? Doesn’t sound fair to me...

[@MrWale323]

I know right it already has a 50b market cap

[@mjeco8905]

If you looked for it you would find it.

[@zxx5]

@@mjeco8905 where was first listed? only for the privileged ppl or for public.. seems like is open to all just now..

[@jonofsasek2820]

free market bro

[@josephmorenoart]

Stop complaining and get rich!

[@MeheandusRevolution]

information about cycles at 8:33

[@footyball66]

smash a like.

[@Omaribisa]

the canister is supposed to replace the blockchain? There is no mention of blockchain

[@chrispayseur6913]

Canister is similar conceptually to a smart contract on Ethereum

[@Omaribisa]

@@chrispayseur6913 Thank you

[@chrispayseur6913]

... and each subnet on Internet Computer is it's own blockchain. For a message to get accepted between two "actors" it has to pass consensus between the nodes on that subnet. That includes state-altering messages originating from end users and canister-to-canister. Also happens on messages where the data an end user receives has to be certified as accurate, like for financial apps.

[@FreeLoader626]

Guys check out The Web3 Project. It's soon to have a DAO with 400,000% APY with 3 second compounded interest, dual-rebasing, a play-to-earn ecosytem, NFTs, soon to be gaming studio, an improved free launchpad like PinkSale, nodes, mining, a stablecoin and wrapped web3 staking. Truely one of a kind project. 🔥🔥🔥

[@user-ik8vy1rg8f]

"The longer the dissolve delay you set, the greater your neurons voting power and the greater the voting rewards you will receive. Because this encourages you to vote with a longer term view on driving the success of the network."

[@kryptoflow1421]

I need ICP Token immediately ! When and where can I buy it ?

[@parvezahmedjalil7310]

Coinbase, Binance etc - All the big exchanges will list on launch (not launched yet.. But will happen soon!) Make sure you have a lot of money ready as circulating supply will be small and lot of hype from the market too..

[@Suvasley]

Have you bought any?

[@Suvasley]

@@kryptoflow1421 did you pay >$300?

[@Suvasley]

@@kryptoflow1421 considering how many coins have not been released, when they are released do you think the price could significantly go down?

[@invisiblian]

@@Suvasley absolutely, their problem is that they are too ambitious. to see any fruition of the project, you probably will have to wait years. that is not to see the price of the token wouldn't go up. just look at doge coin. so why cannot it pull a doge.

[@cryptochrome_original]

So to buy cycles I need to convert ICP tokens. Those ICP tokens get burned in the process. What happens when all ICP tokens have been used up and got burned? This would be the end of the Internet Computer, no? What am I missing?

[@GorillaZillas]

This is something I noticed, I was hoping to then find out how new ICP would be issued to prevent this eventuality, Unless the ICP burned goes into the accounts of the Cylinder owners and Stakers? That would be my guess, correct me If I'm wrong?

[@cryptochrome_original]

@@GorillaZillas I asked around on the Telegram group and apparently, there is an inflationary aspect: When staking ICP tokens, new tokens are minted for the rewards. This is how new supply is generated.

[@maverickarefin]

@@cryptochrome_original yeah much more like farming/staking rewards which is replacing the traditional mining

[@ahsanabbasi3453]

@@cryptochrome_original Seem like they want to balance the ICP token so not everybody runs to Cycles and not everybody go for staking, and with long term staking more new tokens minted and used for cycles but the same time Neurons current world Banks have plenty of ICP supply, i like that approach.

[@thesecondislander]

@@GorillaZillas Dominic mentions in another video that nodes receive ICP rewards, which they will presumably sell to fund themselves. They do not receive the Cycles burned by the calls to cylinders AFAIK. This is in addition to the ICP minted as rewards to stakers (Neurons) who vote.

[@candacemarquette]

ICP should be called Internet Computer of The People! Dom. You are a male version of Harriet Tubman. No wait, like Moses in the Bible. Let my people go! We want out of this monopolistic system. May God the Most High continue to protect you, your team and give you more vision and brilliance.

[@hantusmostert]

wow

[@Simon-xi8tb]

can cycles be converted to ICP ?

[@chrispayseur6913]

My understanding is that it's one way and that the conversion burns ICP, However cycle tokens inadvertently act as a stable coin pegged to a composite of currencies (SDR) that you can trade back into fiat or eventually into other currencies / tokens on the network if you wish.

[@Simon-xi8tb]

@@chrispayseur6913 this makes sense. Thanks

[@HermanWillems]

@@chrispayseur6913 thats funny why the swiss franc :D wtf... who not some technology like DAI

[@nathanroypeterson211]

@@chrispayseur6913 Any ideas on how the ICP tokens are then created again? If they are bought for cycles and then burned, wouldnt the number of tokens decrease until theoretically it goes to 0? How does the number remain stable? Are they paid to the node operators?

[@chrispayseur6913]

@@nathanroypeterson211 through inflation that is distributed as voter rewards (~10% yearly at the moment)and cash-equivalent ICP payments to node operators.

[@Mr.Nafri_]

How much Computer processing power is 1 trillion cycle?

[@thesecondislander]

I am also wondering this. I'd love to see some more in-depth technical videos that explain the nitty gritty.

[@dhelsel89]

So would the open source version of youtube have to burn cycle for every cat video my grandma watches on it?

[@salparadise5930]

Where can I buy the token ? More importantly how does one learn to speak the queens English with such elegance ?

[@cashdinero0]

In May on an exchange wait for an announcement

[@KcDaugirdas]

There's a canister for that

[@asx88]

Pump ICP brothersss, ALL IN !!!!!

[@TM-fr7gh]

Sounds like a mix of Terra, Theta, and Ethereum's EIP

[@allyourcode]

skip past information-free intro: 1:00

[@socialengineer1441]

Seems like delaying is just giving you power to regulate.

[@reylove33]

Yep

[@AJ-gt7uy]

Why is not one questioning the circulation on launch? The seeds paid $4.50 and the IOU price is over $300? LMFAO

[@mrigank8822]

This is a rug

[@chrispayseur6913]

Might want to look at what Ethereum was going for back when the seeds paid $4.50...

[@ckaleeb2942]

@@chrispayseur6913 source?

[@CWL12]

@@chrispayseur6913 what was it going for? cant find it

[@josephmorenoart]

People doubting this project in august 2021, lets see where we are at in year or two ;)

[@CarlosRamirez-yk6wv]

Huge huge

[@dondon98]

Instead of a Dark Net its a releasing a "Light NET"

[@iamawaken]

This is so way over my head. What is a real world example of how this works or would/could work? What is it's purpose? What is it going to facilitate? What current problem is this going to solve? I will attempt to learn more.

[@grandmasterbitcoin5555]

It’s a decentralized layer of the internet that people are encouraged to build on, in order to escape monopolistic qualities of the current internet we’re all using. The current internet and it’s most powerful companies often bully smaller companies in order to retain their dominance, particularly when smaller companies have clever ideas. In a decentralized internet, there is no powerful company, rather there are countless voters (holders of the token), and a democratic outcome. The real world problem Dfinity boasts is how some start ups become businesses by building on top of Facebook or LinkedIn as an add-on that provides a shortcut or data for customers, but Facebook and LinkedIn will often change their code just to remove that add-on, which ends up bankrupting the start up and screwing the customers of said start up since the add-on they purchased suddenly no longer works. Kind of like how Amazon will ban certain products from their marketplace, only to make the products themselves and sell them... basically stealing the idea and profits. It’s a little over my head too, but that’s my attempt.

[@reylove33]

@@grandmasterbitcoin5555 no. You were great with your explanation. Thanks 🙏

[@chrisrosch4731]

@@grandmasterbitcoin5555 any other use cases you can think of? just add ons for current bigger platforms? or can its own facebook be built on this? also, would you recommend buying at current prices of around $450? why, why not?

[@joaodecarvalho7012]

What about the name? I have a suggestion. You come up with an even more boring name, like _The Decentralized Autonomous Internet Computer_ , and that forces people to develop a better name, spontaneously and organically. As long as it is not DAIC or something.

[@cassfrano6481]

god damn swiss , first holed cheese now this!!!!

[@georgesjournal6694]

Big Money Hustlas

[@travismonk2804]

so i have to pay to run computations now?

[@jackkim357]

thats how it is currently, you pay amazon or Microsoft to host your app for you, then pay google or facebook to get web traffic, then pay stripe or PayPal to process any sales you get, then pay taxes to the government on any profits you earn. Web 3.0 is going to remove the need for many of these "taxers", make web transactions much more lean and efficient, and reduce overhead expenses in the form of big tech employees.

[@josephmorenoart]

You've been paying. Just in many different hidden ways. This will eliminate a lot of the BS.

[@dondon98]

ALTER-Net or "Alternate Net"

[@papahuge]

Why would anyone on earth want to buy 'exclusive hardware' to run your dream project?

[@btb1482]

have no clue what the bloke is talking bout or what world his from but ima put my money on him

[@nossy232323]

Big brother, complete control over the next internet!

[@chrispayseur6913]

It's a inherently secure, distributed, censorship-resistant layer on top of the internet... not a replacement.

[@chrispayseur6913]

... and you're speaking on big brother's platform right now.

[@nossy232323]

@@chrispayseur6913 That's not true. It is a layer where TIC has complete centralized control over. Even more control that the current big brother systems that are now in place.

[@chrispayseur6913]

@@nossy232323 The NNS allows everyone to vote according to how much governance tokens they have staked into neurons, if you're not staking for at least 6 months into the future you have no say in the decision making process. What's different here is it incentivizes a long term vision that is equally beneficial to all token-holders. Traditional start-ups and platform providers don't seem nearly as equitable or bound to make decisions in everyone's favor to me.

[@nossy232323]

@@chrispayseur6913 Only whales will have real power.

[@rayrios1127]

Sounds like he is creating Rehoboam.

[@josheli3749]

I see pee! Lol he said it 🤣

[@dondon98]

Jon McAfee died just before we could get this started into Mainstream

[@ovidiumarin2341]

man, do something about ICP ... goes to 0$ :))

[@CrossNEyed]

Insane Clown Posse - Am I the only one?

[@denpono9763]

The entire project's aims will completely fail if the vast majority of tokens held by big companies creating whales around the holders

[@DerperDaDerpa]

I wantiwantiwant

[@joyboy-zx]

If u think this looks decentralized I've got bad news

[@Killer007Elite]

Yeah

[@chrispayseur6913]

Seems more decentralized than BSC, but less than Ethereum. I think it has a better chance of scaling without major bumps in the road than Ethereum, but I like all 3.

[@josephmorenoart]

Still, a large step away from the internet we are currently using.

[@bbs32]

well... it's so complicated...

[@thekaydenkikishow2364]

Are we expected to believe all these Phds actually want to decentralize the internet?

[@irszgatti]

No

[@mattdecker8724]

Are we expected to believe non educated people are capable of decentralizing the internet?

[@thekaydenkikishow2364]

@@mattdecker8724 Ever heard of Vitalik Buterin?

[@markyzentana7540]

well better than getting ban in twitter or facebook(centralized power) without doing anything wrong also search what is internet, a little gift to you my friend (see below) Is the Internet truly decentralized? No one actor can own it, control it, or switch it off for everyone. The Internet and the World Wide Web remain the biggest decentralized communication system humanity has ever seen. ... The Internet remains decentralized, but the things we do on it every day are controlled by just a handful of global technology giants.

[@mattdecker8724]

@@thekaydenkikishow2364 Vitalik might not be a PhD but he certainly was very well educated.

[@pedrogorilla483]

Canisters, neurons, cycles… too complicated, this model will never get broad adoption, you need to take a course to understand how to use your money in this network.

[@HermanWillems]

wow just wow, this is the best tokonomics i have ever seen. With build in stable coins. wtf. :) amazing.

[@user-DongJ]

What about privacy or anonymity? Also how fast & cheap is the transaction? How does ICP secure the network? PoW, PoS or something else?

[@Marqui17]

@@user-DongJ PoS...

[@steves1120]

@@user-DongJ Let's get past the anonymity because the world governments will NEVER allow it to fully happen especially in order to integrate something like with what we already have.

[@user-DongJ]

@@steves1120 Fortunately/Unfortunately, the future is Not up to a few individuals to decide the privacy, security & anonymity of all others.

[@uncledaddy8675]

​@@steves1120 Don't be demoralized. Invest in both sides brother.