New Top 10 Contender?

Let’s dive in and see what this asset is and whether it’s place within the top 10 by Market Cap is warranted.

This project was founded in October 2016 and raised 121,000,000 USD from contributors at the time. Two years after being founded, over 50,000 registered participants received the utility tokens in an airdrop.

The Alpha Mainnet launch took place In December 2020 and on May 10^th 2021, it was launched into the public domain.

What is the Internet Computer Protocol (ICP)?

Internet Computer Protocol claims to be the world’s first blockchain that runs at web speed with unlimited capacity that scales smart contract computation and data, runs them at web speed, processes and stores data efficiently, and provides powerful software frameworks to developers. They claim to be solving the ‘blockchain trilemma’ by producing a blockchain network that is decentralised, secure, and scalable. The launch into the public domain of its utility token (ICP) was, what Internet Computer state, ‘the final step toward decentralisation’. Recipients of this token can now begin participating in network governance.

ICP Token

According to their team, ICP tokens can be used to serve content on the Web; it can be used to build websites, enterprise systems, mass market internet services, pan-industry platforms, De-Fi, and much more using smart contracts.

The diagram below illustrates, how you use your ICP tokens depends upon your aim for acquiring them. For example:

• Say you are a developer or an entrepreneur, you are able to convert ICP tokens into cycles. Cycles can then be used to build and deploy applications in order to deliver products and services to the market. Kind of like Ethereum gas fees, but being used to provide compute power to deliver the final product.
• Should you just simply want to be a member of the community interested in participating in governance, having a say on the direction of the Internet Computer, you are able to stake your ICP tokens (called neurons) within the Network Nervous System (NNS)— so that you have the ability to submit and vote on proposals. The more value that is staked within the governance system, the greater the security of the network.

The Network Nervous System is the governance system of Internet Computer. Any token holder is able to submit a proposal to the NNS. This proposal, should it be accepted, will then be executed immediately, in real time.

The Airdrop

The airdrop release schedule does ease the threat of a sudden dump of tokens on the market by investors and "free token receivers".

All participants of the community airdrop will receive their ICP tokens on the 10^th of each month for a period of 12 months. Participants will have the ability to transfer these tokens to the wallets of their choosing or the NNS to participate in governance.

Seed donors will receive 100% of their ICP tokens at Genesis Unlock, but these will be staked inside 49 voting neurons within the NNS. Each neuron will unlock at different timescales, starting at 0 days and then 30, 60, 90 and so on.

Initial Token Distribution

Whilst Internet Computer state that they have become decentralised upon the launch of ‘Genesis’, the initial token distribution doesn’t really scream decentralisation or fair launch.

Although this project became a top 10 contender seemingly overnight, it has been in production for several years. The aim of what DFINITY want to achieve will take time and the adoption of users will ultimately decide its fate. In effort to decentralise the internet, the allocations having roughly ~70% shared between the team/foundation and seed donors is concerning and contradictory.