Economic Overhaul: Fairer Revenue Distribution
Recently, the DFINITY Foundation announced a major update to the Internet Computer (ICP) economic model. This new system changes the way nodes earn rewards, moving away from a fixed payment model to one where 80% of cloud engine revenue is directly allocated to nodes providing computational power.
This marks a shift toward aligning network contributors more closely with actual business earnings, encouraging more efficient and sustainable node participation.
Token Burning Enhances Value Capture
In addition to optimizing node incentives, the new model introduces a token burn mechanism. 20% of cloud engine revenue will be used to periodically burn ICP tokens, reducing total supply and increasing long-term holding value.
- 80% of revenue goes to nodes
- 20% used for ICP token burns
This approach aims to create stronger economic incentives for token holders through dynamic supply adjustments.
Accelerating Enterprise Market Expansion
According to the official announcement, multiple node provider associations have begun promoting Internet Computer-based cloud engine services in the European market. This move is intended to expand enterprise use cases and accelerate the commercial adoption of decentralized cloud computing.