Internet Computer (ICP) has surged approximately 39% in the past week, outperforming major cryptocurrencies such as Bitcoin and Ethereum, after the DFINITY Foundation published a whitepaper proposing to cut the token's inflation rate by 70% through supply-side reforms and increased network demand.
What Happened: DFINITY Releases Inflation-Cutting Roadmap
The DFINITY team released the MISSION70 whitepaper on Jan. 13, outlining a dual strategy to reduce ICP token inflation from 9.72% to approximately 2.92% by the end of 2026.
Supply-side measures account for 44% of the planned reduction. These include lowering voting rewards, cutting node provider payouts, capping reward pools, and simplifying maturity modulation mechanisms.
"We estimate that the supply-side measures reduce ICP minting from 9.72% (January 2026) to 5.42% (January 2027), a 44% reduction," the whitepaper states.
The document argues that current node provider rewards exceed underlying infrastructure costs, creating room for cuts without compromising network security.
The remaining 26% depends on increased network activity.
DFINITY plans to drive demand through AI-powered on-chain applications and new cloud engine products, with computational fees burning more ICP and creating deflationary pressure.
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Why It Matters: On-Chain Data Shows Market Conviction
Data from Santiment confirms ICP led large-cap assets over the past week by market cap gains.
The token climbed nearly 26% in the past 24 hours alone, placing it atop the daily leaderboard among the top 100 cryptocurrencies.
On-chain metrics suggest holders are positioning for longer-term exposure.
Data shows ICP exchange balances declined by more than 58% over the past 24 hours, a pattern typically associated with reduced selling pressure.
Network usage has also accelerated. Chainspect recorded approximately 90 million transactions in one day, marking the Internet Computer's highest daily activity in over a month.
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