The DFINITY Foundation, led by founder Dominic Williams, has launched an ambitious new economic framework called "Mission 70" for its Internet Computer (ICP) blockchain. Announced on January 14th, the initiative is detailed in a comprehensive token economy white paper and aims to drastically reshape ICP's monetary policy by reducing its annual inflation rate by 70% by the end of 2026.
The plan targets a reduction of ICP's current annual inflation from approximately 9.72% to under 3%. This aggressive deflationary strategy is one of the most significant among major smart-contract platforms. The announcement triggered an immediate market reaction, with the ICP price surging over 30% in a single day, although the token remains 99% below its all-time high.
Supply-Side Adjustments: A core component of Mission 70 involves substantial supply-side cuts. The proposal includes shortening neuron dissolve delays and significantly lowering node provider rewards. These combined changes are designed to achieve an absolute token supply reduction of approximately 44%, aiming to reduce structural sell pressure and align new token issuance with genuine network growth rather than indefinite subsidization.
Demand-Side Expansion: Recognizing that supply cuts alone are insufficient, DFINITY is simultaneously focusing on boosting demand. The plan projects roughly 26% growth in token demand, driven by expanded AI tooling and enterprise adoption. A key mechanism is the increased burning of ICP tokens to create "Cycles," the network's computational fuel. Mission 70 targets raising the network's cycle burn rate from about 0.05 XDR per second to 0.77 XDR per second, reflecting expected growth in real on-chain usage.
Furthermore, the framework introduces a direct revenue feedback loop, proposing that 20% of network revenues be routed toward ICP token burns. This creates a deflationary mechanism tied directly to network activity, a structure more common in traditional businesses than crypto protocols.
Infrastructure and Vision: The plan emphasizes supporting sustained, real-world demand, particularly through AI and enterprise workloads. Upgrades include SEV-optimized subnets for improved compute efficiency and "cloud engines" tailored for reliable, scalable applications. This aligns with ICP's broader vision of serving as a decentralized alternative to centralized cloud providers.
Analyst Perspective and Risks: Chinese analyst Jae commented that the price movement represents a re-pricing of Internet Computer's core value proposition, signaling a shift from a subsidized infrastructure to a self-sustaining value engine. However, Jae and the proposal itself highlight significant risks. The success of Mission 70 depends on two critical conditions: that reduced incentives do not drive node providers away, and that platforms like the Caffeine AI tool generate the expected scale of Cycles burning. Other challenges include the relatively small size of ICP's DeFi ecosystem, limited liquidity, and low user numbers, which could pressure ecosystem vitality if the deflation target is not met alongside growing demand.
