$ICP #ICP生态

Today, let's talk about the second question of ICP:

Has the death spiral been resolved?

No.

1. [Node merchants]

1. Many people may not know that ICP has a unique "innovation", node merchants. ICP has high requirements for node performance, and node merchants need to purchase expensive equipment by themselves, pass KYC, and then apply for membership after the foundation's approval. Individuals are not eligible to become nodes of the IC chain, how "decentralized".

2. So how do these node merchants make a profit? What does the U-based node merchant salary mean? The foundation promises to pay node merchants in US dollars (U), but the foundation is reluctant to spend its own money. What should we do? Issue additional ICP! According to the existing information, it is preliminarily estimated that the monthly salary to be paid to node merchants is 2.4 million US dollars. For example, if the price of ICP is 10u, then 240,000 ICP will be issued to them every month. If the price of ICP is 1U, then 2.4 million ICP will be issued to them every month. In order to maintain equipment and personnel costs, node vendors must sell ICP.

3. The true meaning of the death spiral is: the more the price of the currency falls, the more additional issuance, and the more additional issuance, the lower the price of the currency.

2. [ICP pledge]

1. Some people say that the pledge rate of ICP is close to 50%, and the death spiral has been lifted. This is a complete lie, because the interest generated by the pledge is the accelerating factor of the death spiral. You can guess how much the pledge interest "to be sold" is now? More than 80 million ICPs, more than 30 million ICPs have been sold, and these more than 80 million ICPs may be thrown into the market at any time.

2. The average interest generated each month is as high as more than 1 million ICPs.

3. You only need to figure out one question, why would someone pledge ICP for 8 years. Because they want high interest, so what do they do with high interest? What else can you do if you don't sell it? Give your money to the foundation with interest?

3. [Destruction]

1. There is only one condition to break the death spiral: Destruction >> New.

2. So ICP adds millions of ICPs on average every month, how many did it destroy? More than 2,000. You read that right, the foundation adds millions of ICPs every month, but only destroys thousands, a thousand times difference.

Attached is a picture, please appreciate it yourself.

Next time, let's talk about point 3: Is the previous plunge in ICP really due to short selling by others as the foundation claims?

no.