Finishing: Blockpunk

Community: Nutshell Universe (ID: DfinityFun)

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Economic System Overview"Cycles"Internet computer, which is a super blockchain computer composed of independent data center networks running advanced decentralized protocols around the world. It not only reshapes the possibility of blockchain, but also reconstructs the nature of software and IT technology.

As a development environment, the Internet computer is unique in that the Network Nervous System (NNS) on top of the protocol is an open algorithmic governance system that governs the network and the token economy, enabling the construction of DeFi and dapps, open Internet services, and enterprise systems capable of operating securely at hyperscale are possible.

On the Sodium testnet, DFINITY announced NNS, and introduced how NNS manages the economic system of the network, and how ICP tokens (formerly known as DFN) will be used for governance, computing consumption

• ICP tokens are primarily governance tokens that can be used to manage the blockchain network created by the Internet Computer Protocol. When the network launches, 469,213,710 ICP tokens will be created."Neurons"ICP tokens have the following two capabilities:

• Neurons

, vote on proposals and get voting rewards.

Turn them into Cycles that drive the computation of software containers on computers on the Internet.

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Governance Token ICP and Neuron

When you create a neuron, its voting power initially is proportional to the amount of ICP tokens locked inside. The rewards your neurons get from NNS when voting on proposals are also related to this ratio.

For example, with the control variable, a neuron locked to 200 ICPs will have twice the voting power and receive twice the voting reward than a neuron locked to 100 ICPs.

There is a maximum voting reward every month based on the configuration of your neurons. NNS keeps track of neurons' participation in voting and rewards the highest reward share proportionally. You can also configure your neurons to vote automatically most of the time by following other neurons you trust.

Essentially, to extract the ICP tokens locked in a neuron, it is necessary to "dissolve" the neuron. "Dissolving" takes time, but you can start and stop the process of "dissolving" neurons at any time."Delayed dissolution"。"Delayed dissolution"Delayed dissolution"Delayed dissolution"It can be configured through the Neuron online governance interface. you set

"Delayed dissolution"The longer it is, the stronger the voting ability of your neurons, and the more voting rewards you get, because this encourages you to vote with a longer-term perspective, bind interests, and promote the success of the network."Delayed dissolution"Delayed dissolution

Time can be increased, but not decreased. This is similar to a kitchen timer, where turning the dial clockwise increases the length of the countdown, but the countdown can only be decreased by the passage of time. In order for your neurons to be meaningfully governed, the current

Delayed dissolution"Minimum six months, maximum eight years."NNS pays neuron holders voting rewards, which is the inflation of the ICP. Convert ICP tokens to Cycles (that is, gas tokens) and be run by software running on Internet computers

burn

, which is the deflation of the ICP.

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GAS token: Cycles

Software containers running on Internet computers must be "charged" with Cycles, which are used to power computation and memory management, and destroyed in the process. The ratio of ICP tokens converted to Cycles is variable and is continuously configured by NNS according to the external market.

Over time, more and more Cycles will be destroyed. Since Cycles can only be generated by ICP tokens, in fact, as time goes by, more and more ICP will be consumed by calculations. This guarantees that as long as computing continues to run on computers on the Internet, someone must buy ICP somewhere to produce Cycles.

This is in stark contrast to other projects where such tokens are either collateralized by assets held in trust with a custodian acting as issuer and redeemer, or using an elaborate scheme To stabilize its value, these schemes rely on assumptions about the volatility of the cryptoassets used as collateral, but in either case this makes them difficult to trust.

open internet service

The characteristics of Cycles make it easy for Internet computers to facilitate DeFi, and only a credible and stable gas model can help developers create future ultra-large-scale Internet services.

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open internet service

ICP is the native governance token of the Internet Computer, but each open Internet service can create its own governance token if desired.

In addition, the Internet computer at the bottom allows companies or developers to connect independent governance components to any container and program it so that the software container holds any type of token and uses the token as part of the function call. Sent to other software containers.