2026-01-20 05:21:57

The ICP network is about to undergo significant adjustments to its economic parameters. According to the latest mathematical model, the inflation rate is expected to drop sharply from 9.72% in January 2026 to 5.42% in January 2027, with the total issuance decreasing by approximately 44%, primarily due to multiple supply-side structural reforms.

There have been notable changes in the incentive mechanisms at the governance level. The new "concave" reward curve replaces the original linear structure, making it more friendly to users actively participating in governance. Correspondingly, the governance issuance has been significantly reduced—from 5.88% to 3.45%, a decrease of 41%.

Staking rewards have been redesigned. A 2-cycle lock-up offers an annualized yield of 2.3%, a 1-year term provides 3.5%, and the newly added 2-year maximum term reaches 7.0%. In particular, long-term holders of 8 years will receive a "Loyalty Bonus" of 7.7%, creating a substantial incentive for committed participants.

Adjustments on the infrastructure side are also substantial. Node rewards have been sharply reduced by 49%, from 3.84% down to 1.97%. This change is achieved by cutting the rewards for first-generation nodes and simultaneously optimizing support for newer and more economical hardware configurations, overall improving network operation efficiency.

ICP-6,88%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
7
Repost
Share

Comment

0/400

StakeHouseDirector

· 15h ago

Haha, inflation has been cut from 9.72% to 5.42%, this move is still quite aggressive. --- 8 years locked at 7.7%? Brothers need to consider whether it's worth it. --- Node rewards are directly cut by 49%, hardware developers must be crying. --- Is a convex curve more friendly than a linear one? Anyway, I can't quite understand it. Can someone explain? --- Staking yields are pretty good, 2 years at 7% seems worth considering. --- Supply reduced by 44%, does this indirectly mean the token will become scarce? --- Reducing governance issuance by 41%... Is this a good thing or a bad thing? I'm a bit unsure.

View OriginalReply0

unrekt.eth

· 15h ago

Hmm... Inflation dropped from 9.72 to 5.42? That's quite a significant decrease; a 44% reduction in issuance is pretty intense. Lock-up for 8 years only yields 7.7%, feels less lucrative than the previous options wave. Node rewards have been cut by more than half; friends running nodes will probably need to recalculate their earnings. The convex curve on the governance side sounds good, but the actual results will depend on the data. The biggest winners of this reform should be the long-term stakers, right?

View OriginalReply0

CryptoMotivator

· 15h ago

Whoa, inflation has been cut from 9.72% to 5.42%? Is this for real? ICP is finally getting serious. The 8-year loyalty reward of 7.7% sounds pretty good, but I wonder if it can last until then, haha. Node rewards cut by 49%, first-generation miners are going to cry. Is this a cleanup? Replacing the linear curve with a convex curve? Sounds professional, but basically it's just readjusting how the cake is divided. Adjusting staking APY like this, is it to really encourage people to lock in? That's interesting. Issuance reduced by 44%... Do you have to be so aggressive, everyone? Governance rewards cut from 5.88% to 3.45%, so fewer people will participate in governance in the future. This reform is really about reducing quantity and improving quality, no fluff. But in the long run, this logic is correct. Short-term holders might get cut in this wave.

View OriginalReply0

WagmiOrRekt

· 15h ago

Wait, a 49% cut in node rewards? That's outrageous, buddy. Early miners are about to get cut again.

View OriginalReply0

potentially_notable

· 15h ago

Wow, 8 years locked for 7.7%? How dedicated must the followers be to wait... --- Inflation is cut by more than half directly, this time they really want to cool down. --- Node rewards are cut by 49% directly, miners probably need to recalculate their accounts. --- The convex curve sounds pretty intimidating, but the governance issuance is also shrinking. Is it true? --- Long-term holders are getting gains, but what about short-term ones? Still need to wait. --- The supply-side reform concept... feels like ICP will stir up some trouble in the next couple of months. --- Redesign of staking rewards, I just want to know if the original people lost or gained.

View OriginalReply0

SchrodingerWallet

· 15h ago

Inflation has dropped from 9.72% to 5.42%. Now it's time to do some proper calculations. It feels a bit painful that the governance rewards were cut by 41%.

View OriginalReply0

SelfMadeRuggee

· 15h ago

Manipulation: Node rewards cut by 49%—who can handle this?

View OriginalReply0