Explain the details of DFINITY token distribution and the calculation of future circulatio

DFINITY tokens are issued in the form of voting rewards and node mining rewards, and at the same time, they are deflated in the form of exchanges for cycles and transaction fees.

Since Internet computers went live on the "Genesis" mainnet, the governance system NNS has also been launched simultaneously, and the network has begun a process of gradual decentralized management. The community currently controls about 60% of voting rights.

　　ICP token holders lock their tokens in the Network Neural System (NNS) to create neurons. They can participate in network governance by using voting rights and vote on proposals to continuously upgrade Internet computers. The NNS system is a permissionless governance system that controls the Internet computer blockchain. So far, NNS has accepted 4970 proposals submitted by the community. Once the proposals are voted for adoption, the proposals will be automatically executed by NNS. In return, community participants in network governance receive "voting rewards."

　　As of June 8, 2021, participants who pledged ICP to participate in governance mining received an annualized reward of 28.9%.

Governance weight
　　The DFINITY Foundation and the Internet Computer Association ICA are the two main non-profit organizations of the network, and the total amount of voting rights they hold is limited to less than 50%. The total voting power between the two after the mainnet goes live is 40%.

　　With the issuance of more ICP tokens and the participation of token holders in network governance through pledges, the collective voting rights of the DFINITY Foundation and the Internet Computer Association ICA will continue to be greatly reduced. The network will gradually be governed by the community, and the community will be in the Internet computer network. Play a greater role in the governance of the country.

　　The voting power of a neuron is calculated according to three parts:

　　The number of pledged ICP tokens;

　　The lock delay time is up to 8 years;

　　The age of the neuron, the time since the neuron was created.

　　Anyone can independently verify the total number of votes at any time by checking the number of votes for the proposal on the NNS dapp.

Token distribution
　　After the mainnet was officially launched on May 10, ICP tokens began to circulate. Early contributors, seed rounds, more than 50,000 community airdrops, strategic partners, technical partners, etc. unlocked their liquid ICP tokens.

　　Note that when the seed round (24.7% in total) and the team and early contributors (9.5% in total) went live on the mainnet, all tokens were obtained in the form of governance neurons, but there was an unlocking cycle.

　　Over time, the liquidity of tokens will be affected in a number of different ways:

　　In the seed round, early contributors, pre-sale round, strategy round, airdrop, current and former employees, partners, developers, etc., ICP tokens will be unlocked on a monthly or quarterly basis, or by dissolving neurons. Ways to enter circulation, each part of the organization and token holders pledge ICP tokens into neurons and get voting rewards, or consume ICP to convert them into Cycles to pay for gas, or enter circulation.

　　There are two types of additional issuance of ICP tokens: (1) Neuron voting rewards, rewards, and ICP rewards are issued based on the percentage of total ICP supply. The current is 10%, and the additional issuance rate will be reduced to 5% within eight years. (2) Nodes Mining rewards are calculated based on the cycles consumed in the network to issue additional ICP to nodes. The additional issuance rate of factors will be the same as the consumption of ICP.

　　There are two ways of deflation of ICP tokens: (1) Burning ICP in exchange for cycles to provide computing power for applications (2) for DeFi and transaction deduction.

　　DFINITY Foundation allocates a small amount of tokens to development as financial support: (1) Continuously increase the size of the foundation's technical staff and operation team (2) Continue to invest in research and development (3) Developer ecological grant system plan.

　　Finally, does the DFINITY Foundation have sufficient funds to continue research and development, and can work with the community to make Internet computers more effective, faster, and easier for developers to use, and support and accelerate the establishment of the Internet computer ecosystem through the developer grant program.

　　Therefore, the DFINITY Foundation did not sell ICP tokens from this part after the mainnet went live. DFINITY will responsibly distribute tokens to ecological supporters in order to reinvest in Internet computers and communities.

　　Although the broader cryptocurrency market is swaying wildly between boom and bust cycles, we are still focused on quickly promoting Internet computer blockchain technology, accelerating the adoption of network node vendors, developing the developer ecosystem, and transitioning to the world Provide leadership when opening up the Internet. In this spirit, we are excited about the development results in the coming months. The increase in daily transaction volume and the increase in institutional demand have laid a solid foundation for faster developer adoption on the Internet computer blockchain.

　　Although the seed round has begun to unlock ICP tokens, it was their support that helped launch the Internet computer project. Many seed round participants used ETH to donate to DFINITY in February 2017, when the price of ETH was between $6-10.