To achieve a 1:1 ratio where $ICP tokens burned equal the number minted annually, the network must burn approximately 69.27 million ICP per year.
🔥 Annual ICP Burn Requirements
Given that 1 trillion cycles equate to 1 XDR (*), and considering the current ICP to XDR exchange rate, the network would need to burn cycles equivalent to 69.27 million ICP annually to offset the inflation rate.
📈 Historical Annual Cycle Burns
Below is an overview of the annual cycle burns since the Internet Computer’s launch:
• 2021: Approx 1.5 mill ICP burned.
• 2022: Approx 3.2 mill ICP burned.
• 2023: Approx 6.8 mill ICP burned.
• 2024: Approx 12.5 million ICP burned.
• 2025 (Year-to-Date): Approximately 8.3 mill ICP burned.
These figures indicate a steady increase in the burn rate, reflecting growing adoption and usage of the network.
🧮 Projected Timeline to Achieve 1:1 Burn-to-Mint Ratio
Based on current growth trends in cycle consumption and assuming continued adoption:
• 2026: Projected burn of 18 million ICP.
• 2027: Projected burn of 27 million ICP.
• 2028: Projected burn of 40 million ICP.
• 2029: Projected burn of 55 million ICP.
• 2030: Projected burn of 70 million ICP, potentially achieving the 1:1 ratio.
These projections are contingent on sustained network growth, increased dApp deployment, and broader adoption of the Internet Computer ecosystem.
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And this is without taking into account the upcoming major milestones that were recently announced.
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(*) 🌍 What Is XDR?
XDR stands for Special Drawing Rights, a synthetic international reserve asset created and maintained by the International Monetary Fund (IMF).
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✅ Benefits of Using XDR for ICP:
1. Stability – Pricing is not affected by ICP’s token volatility.
2. Fairness – Developers know exactly how much computation will cost, regardless of market swings.
3. Global Neutrality – XDR is not tied to any single country’s currency or politics.
