ICP Token Pledges Aim to Drive Protocol Decentralization on Internet Computer

The Dfinity Foundation, Swiss non-profit behind the Internet Computer blockchain, has announced community members' commitment of over 6.5 million ICP tokens to transform protocols into decentralized autonomous organizations (DAOs) in 2023. The total value of committed tokens has surpassed $120 million, with community members utilizing the Service Nervous System (SNS) framework to decentralize top ecosystem protocols.

Will ICP's Token Commitment Drive Protocol Decentralization?

Dfinity Foundation, the Swiss charity behind the Internet Computer blockchain, has unveiled that community members have "pledged" over 6.5 million ICP tokens to help protocols evolve into decentralized autonomous organizations (DAOs) in 2023.

Valuable Tokens?

Following a 12% surge in ICP's token price on Tuesday, pushing it above $19, the total value of the committed tokens has surpassed $120 million, as reported by The Block Price Page.

Decentralization via Tokens?

In a statement, Dfinity Foundation asserted that community members dedicated "over 6.5 million ICP tokens ... via the transformative Service Nervous System (SNS) framework to accelerate the decentralization of the ecosystem's leading protocols." The organization elaborated, "ICP's unique SNS model empowers protocols to achieve full decentralization by morphing into DAOs."

Beneficiaries of Decentralization?

Initiating protocol decentralization transpires when community members contribute ICP tokens to prospective projects through "decentralization swaps," Dfinity Foundation explained. Among the dapps benefiting from the framework are the messaging service Open Chat and the video game Dragginz, both operating on the Internet Computer blockchain.

Internet Computer's Background

Dfinity Foundation's Internet Computer debuted in 2021 amidst much fanfare, attracting over $160 million in venture capital, making it one of the most eagerly awaited blockchain projects at the time.