The DFINITY Foundation announced a significant change to the economic model of the Internet Computer (ICP) network.
According to the statement released by the foundation, while the revenue structure of node providers was restructured, a remarkable mechanism was also implemented in the ICP token supply dynamics.
In the old model, node providers only received a fixed reward for running nodes. The new model makes the revenue structure more performance and demand-driven. Accordingly, 80% of the revenue generated from “cloud engine” services will be distributed directly to the nodes providing computing power. The remaining 20% will be used to burn ICP tokens. This mechanism aims to reduce supply in parallel with network usage.
The foundation argued that this change signifies a shift in the Internet Computer ecosystem towards a growth model based on “real demand” and “real infrastructure.” Generating revenue directly from cloud services and allocating a large portion of it to node operators aims to make the network more sustainable and market-oriented.
Meanwhile, it has been reported that the Node Provider Association has begun preparations to market its cloud engine services to enterprises across Europe.
According to market data, the ICP token is trading at $2.27, up 6.49% in the last 24 hours. However, the asset has lost approximately 69% of its value year-to-date.
*This is not investment advice.
