Tokenomics
Introduction to Tokenomics
The Impossible Cloud Network (ICN) is powered by its native utility token, ICNT, which serves as the fuel for the entire network. ICNT plays a central role in incentivising network participants, ensuring access to services, and maintaining decentralisation.
Key Roles of ICNT:
Accessing Network Services: Builders provide ICNT to access storage, compute, and other network resources.
Collateral Functionality: ICNT can be staked by hardware operators to join the Network as Hardware Nodes. ICNT holders will thus transfer the ICNT to a staking smart contract, and the ICNT will be locked there. If the Hardware Node misbehaves, the Hardware Collateral will be subject to slashing by the Network.
This diagram illustrates the flow of ICNT contributions within the ICN. Builders provide ICNT to the treasury, which acts as a central repository. Governance Decisions, represented as a control agent, allocate ICNT from the Treasury to the Reward Reserve or reinvest for the purpose of the further development of ICN based on protocol needs and governance actions. The Reward Reserve distributes ICNT as rewards to Hardware Providers and Hypernodes, ensuring network incentives remain robust
ICNT Supply
Circulating Supply
The circulating supply of ICNT represents the number of tokens that are actively available in the market, being used for network services, rewards, and trading. This number evolves over time as tokens are unlocked from unlock schedules and as new tokens are minted.
Unlock Schedules: A portion of ICNT tokens distributed to early investors, the team, and other stakeholders are subject to unlock schedules, meaning they are released gradually over a defined period. This prevents sudden market oversaturation, maintaining stability.
Token Minting: Additional tokens are minted in a controlled manner over the first 5 years to ensure the network has enough resources for growth and incentives.
For more details, visit the Circulating Supply page.
Total Supply
The total supply of ICNT is permanently fixed at 700 million tokens. All tokens were minted at genesis, and there is no inflation. Any change to this hard cap would require a formal governance proposal and community approval; none is currently planned.
For a more detailed breakdown of the total supply, visit the Total Supply.
Token Utility
ICNT is the backbone of the Impossible Cloud Network (ICN). It powers the network by enabling users to access services, rewarding contributors, and securing the network’s decentralised infrastructure. Below are the key utilities of ICNT:
Accessing Network Services
Builders need ICNT to access the storage and compute resources available on the network. By using ICNT, Builders can store, retrieve, and process data on the network. This creates demand for the token as more participants join and utilise the resources.
Fees for Services: Builders contribute ICNT to use network resources. These ICNT are collected in the Treasury. Transfers from the Treasury to the Reward Reserve are made based on governance decisions, ensuring flexibility and adherence to network needs.
For more detailed information on how ICNT is used to access network resources, visit the Builders section.
Incentives and Rewards
ICNT is used to incentivise network participants such as Hardware Providers (HPs), Builders, and Hypernodes. By rewarding these contributors, the network ensures its sustainability and decentralisation.
HP Rewards: HPs earn ICNT as rewards for providing storage and compute resources.
Hypernodes: Hypernodes are responsible for monitoring network performance, and the ICN Link holders that have delegated to the Hypernodes earn ICNT based on their service level monitoring duties.
For more information on rewards, visit the HP Rewards and HyperNodes sections.
Collateral for HPs
Hardware Providers are required to lock a portion of ICNT as collateral to participate in the network. This collateral ensures that HPs commit to providing the agreed-upon resources and meet their performance thresholds. If they fail to do so, their collateral may be slashed, enforcing reliability.
For further details on how collateral works, visit the Collateral section.
Token Minting
No additional ICNT will be minted. All network emissions derive from the fixed genesis supply and the Reward Reserve.
Burn Mechanisms
Currently, there are no burn mechanisms in place within the Impossible Cloud Network (ICN). However, as the network evolves, burn mechanisms may be introduced through governance decisions. These mechanisms would allow for the permanent removal of ICNT from circulation, potentially increasing the scarcity and value of the token.
For more details on how burn mechanisms could be introduced, visit the Burn Mechanisms section.
Initial Allocation
At the launch of the Impossible Cloud Network (ICN), the initial allocation of ICNT tokens was carefully structured to balance network growth, incentives, and ecosystem development. The total initial supply of 700 million ICNT tokens was distributed across several key groups to ensure the long-term sustainability and decentralisation of the network.
Breakdown of Initial Allocation
Investors: A portion of the initial supply was allocated to early investors who helped fund the network’s development.
Team: The founding team and other core contributors received a share of the tokens, but these are subject to vesting schedules to ensure long-term commitment.
Development Company: A specific allocation was reserved for ongoing network and software development to ensure that the network can continue to evolve.
Node Sale: A portion of the supply was reserved for ICN Link holders, enabling them to contribute resources to the network.
Reward Reserve: A significant amount of tokens were allocated to the Reward Reserve, which is used to incentivise Hardware Providers (HPs) for their contributions.
For more details on the specific token distribution, visit the Initial Allocation section.
Unlock Schedule
The unlock schedule ensures that tokens distributed during the initial allocation are not immediately available for use or trading. This gradual release of tokens helps maintain network stability by preventing sudden market fluctuations and ensuring that participants remain committed to the long-term success of the Impossible Cloud Network (ICN).
Unlock Periods
Team Tokens: Tokens allocated to the founding team are vested over a four-year period, with a 12-month cliff, meaning no tokens are unlocked for the first year.
Investor Tokens: Similarly, tokens allocated to investors are released over time, ensuring alignment with the long-term goals of the network.
Development and Partner Funds: Funds allocated for network development and partnerships are also subject to vesting schedules to prevent short-term liquidation and incentivise continuous ecosystem growth.
For more detailed information on how the vesting periods work, visit the Unlock Schedule section.
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