In a significant move to stabilize its economy, DFINITY has unveiled the Mission 70 white paper, outlining a comprehensive strategy aimed at reducing ICP inflation by 70%. According to the results published in the material, this initiative combines innovative supply-side reforms with demand-side enhancements to create a balanced economic environment for the Internet Computer ecosystem.
Supply-Side Reforms for Inflation Reduction
The white paper details that approximately 44% of the targeted inflation reduction will stem from supply-side reforms. These reforms are designed to streamline operations and enhance the overall efficiency of the network, thereby reducing the inflationary pressures on ICP.
Demand-Side Strategies and ICP Burn
On the demand side, DFINITY anticipates that a 26% reduction in inflation will be achieved through increased ICP burn, which is expected to be driven by heightened network usage. This approach not only aims to curb inflation but also aligns it with the Internet Computer's growth and actual economic activity.
Establishing a Sustainable Economic Model
By implementing this dual strategy, DFINITY seeks to establish a sustainable economic model that supports the long-term viability of the Internet Computer, ensuring that inflation rates reflect the network's maturity and user engagement.
Recently, the DFINITY Foundation proposed changes to voting rewards and node payments as part of its Mission 70 initiative, aiming to enhance network sustainability. For more details, see read more.
