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Official Dfinity token allocation details and future circulation estimates

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Dfinity tokens are additionally issued in the form of voting rewards and node mining rewards, while deflation is carried out in the form of exchange cycles and transaction fees.

Title of the original article: "Official Token Allocation Details and Future Circulation Estimation of Dfinity"

Original article by Blockpunk, ICP League

Since the Internet computer went through the "Genesis" when the main net was launched, the governance system NNS was also launched simultaneously, and the network began the process of decentralized management gradually. At present, the community controls about 60% of the voting rights.

ICP token holders lock their tokens into creating neurons within the Network Nerves System (NNS), and they can participate in network governance by using their voting rights to vote on proposals to constantly upgrade Internet computers. So far, NNS, the permission-free governance system that controls the Internet's computer blockchain, has accepted 4,970 proposals submitted by the community, which will be automatically implemented once the proposal is voted on. In return, community participants in network governance receive "voting rewards."

As of June 8, 2021, mortgage ICP participants who participate in clean-up mining have received awards up to 28.9% annualized.

详解 DFINITY 代币分配细节与未来流通量测算

Control the weight

The Dfinity Foundation and the Internet Computer Association ICA, two of the network's main non-profit organizations, have been limited to voting rights of less than 50 percent. The voting power between the two will total 40% after the mainnet goes online.

As more ICP tokens are issued and token holders participate in network governance through pledges, the collective voting rights of the Dfinity Foundation and the Internet Computer Association ICA will continue to be significantly reduced and the network will gradually be governed by the community, which will play a greater role in the governance of the Internet computer network.

详解 DFINITY 代币分配细节与未来流通量测算

A neuron's voting power is calculated based on three components:

The number of ICP tokens pledged;

The maximum time of locking delay is 8 years;

The age at which the neuron exists, the time since the neuron was created.

Anyone can independently verify the total number of votes at any time by looking at the number of votes cast for a proposal on the NNS DApp.

Distribution of tokens

Early contributors, seed rounds, more than 50,000 community airdrops, strategic partners, technical partners, and others unlocked their liquid ICP tokens after the mainnet's official launch on May 10.

Note that the seed round (24.7% total) and the team and early contributors (9.5% total) received all tokens in the form of governance neurons when the main net went live, but there was an unlocking cycle.

详解 DFINITY 代币分配细节与未来流通量测算

Over time, token liquidity can be affected in a number of different ways:

In the seed round, early contributors, pre-sales, strategic, drop, current and former employees, partners, developers, and other sections, ICP tokens will be monthly or quarterly unlock, or by way of dissolving neurons into the circulation, each part of the organization and ChiBiRen ICP tokens, pledge into neurons and vote for rewards, Or it can consume ICP and convert it into Cycles to pay for gas, or it can go into circulation.

There are two types of secondary issuance of ICP tokens: (1) Neuron voting reward, reward, and ICP reward are increased issuance according to the percentage of total ICP supply, which is currently 10%, and the increase rate will be reduced to 5% in eight years. (2) Node mining reward, which is priced according to the Cycles consumed in the network to increase issuance of ICP to nodes. Factor growth rate will be equal to ICP consumption.

There are two ways to deflate ICP tokens :(1) burn the ICP in exchange for Cycles, which provides computing power for the application, and (2) use it for Defi and transaction deductions.

The Dfinity Foundation allocates a small number of tokens to the development as financial support :(1) continuously increase the size of the Foundation's technical staff and operations team; (2) continue to invest in research and development; and (3) the Developer Ecological Grant System program.

Finally, does the Dfinity Foundation have sufficient funding to continue research and development and work with the community to make Internet computers more efficient, faster, and more accessible to developers, and to support and accelerate the creation of an Internet computing ecosystem through the Developer Grant program.

Therefore, the Dfinity Foundation did not sell ICP tokens from this segment after the mainnet went live. Dfinity will responsibly allocate tokens to ecological supporters to reinvest in Internet computers and communities.

While the broader cryptocurrency market has swung wildly between boom and bust cycles, we remain focused on rapidly advancing Internet computer blockchain technology, accelerating the adoption of network node providers, growing the developer ecosystem, and providing leadership as the world transitions to an open Internet. In this spirit, we are excited about the results of developments in the coming months. The increase in daily transactions and institutional demand has laid a solid foundation for faster developer adoption on the Internet computer blockchain.

Although the seed round had already begun to unlock ICP tokens, it was their support that helped kick-start the Internet Computer project. Many Seed Round participants used ETH to donate to Dfinity in February 2017, when ETH was between $6 and $10.