Difference between revisions of "Total supply, circulating supply, and staked ICP"
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* Burning of transaction fees | * Burning of transaction fees | ||
* Burning of the 1 ICP deposit for failed proposals; note that this only happens at disbursement or merging of neurons, so accumulated fees can persist for a while before finally contributing to deflation. | * Burning of the 1 ICP deposit for failed proposals; note that this only happens at disbursement or merging of neurons, so accumulated fees can persist for a while before finally contributing to deflation. | ||
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| + | The amount of ICP burged since Genesis is listed in the [https://dashboard.internetcomputer.org/circulation "Total ICP Burned" chart] in the IC circulation dashboard. | ||
===Paying for compute and storage=== | ===Paying for compute and storage=== | ||
Revision as of 22:51, 22 February 2022
The total supply of ICP is variable with both burning (deflationary) and minting (inflationary) mechanisms. The circulating supply of ICP is also affected by the unlocking of neurons from early contributors (seed round contributors are on multi-year vesting for example).
Total supply and circulating supply
The circulating supply is a changing number so its most recent number can seen in the IC dashboard.
At network Genesis
As of May 10, 2021:
- Total supply: 429 Million
- Circulating supply: 123 million
Current Status
As of February 23, 2022:
- Total supply: 477 Million
- Circulating supply: 207 million
Inflationary mechanisms
The NNS mints ICP tokens for two reasons:
- NNS can mint ICP to pay for NNS rewards (e.g. Staking). As of February 2022, this is the 95-99% of current minting.
- NNS can mint ICP to pay for node providers
Paying staking rewards
Voting rewards are paid by minting ICP, although this minting only happens at the moment rewards are spawned, maturity is merged, or the neuron is disbursed.
In the first year, the NNS allocates 10% of the total supply to generate voting rewards. Note the term "allocates" rather than "mints", because rewards are not minted until they are spawn, merged or the neuron is disbursed, so total supply is not automatically increased by rewards alone. This allocation rate drops quadratically until it reaches 5% by year 8. Like all parameters in the NNS, the minting rate can be changed via NNS proposals, but this is the current rate schedule.
The amount of ICP minted for NNS rewards can be seen in the "Total Rewards" chart.
See more in Staking,_voting_and_rewards.
Paying node providers
Node providers are paid for their nodes.
The amount of ICP minted for compute can be seen in the "Total Rewards" chart.
Deflationary mechanisms
There are three main cases for burning ICP:
- Minting cycles to pay for compute and storage burns ICP to create cycles
- Burning of transaction fees
- Burning of the 1 ICP deposit for failed proposals; note that this only happens at disbursement or merging of neurons, so accumulated fees can persist for a while before finally contributing to deflation.
The amount of ICP burged since Genesis is listed in the "Total ICP Burned" chart in the IC circulation dashboard.
Paying for compute and storage
Transaction fees
Failed NNS proposals
It costs 1 ICP to submit a proposal. If the proposal is rejected, the 1 ICP is burned.
Unlocking & vesting of neurons
Because the IC took years of R&D (at Genesis, the DFINITY foundation was over 200 full time members), there have been three main rounds and one airdrop event.
For a breakdown of the different rounds and vesting schedules, see Messsari's report "Introduction to ICP".
The unlocking of neurons has been the largest contributing factor to circulating supply since Genesis.