Internet Computer Community Pledges $80M in Tokens for Decentralization, Prices Surge Amid AI Advancements
Summary:
DFINITY Foundation's 2023 report revealed that almost $80 million worth of Internet Computer (ICP) tokens were pledged last year to foster decentralization. Dapps and initiatives benefiting included platforms like OpenChat, Dragginz, and Kinic. DFINITY Foundation also reported a 121% year-on-year increase in overall network usage, highlighting constant growth in its ecosystem. ICP prices have seen significant rise due to recent advancements in artificial intelligence. Despite a recent surge, the ICP price is still 97% lower than its May 2021 high of $700.
Last year, members of the Internet Computer network committed approximately $80 million in Internet Computer (ICP) tokens towards decentralization projects. This was revealed in the DFINITY Foundation's 2023 protocol ecosystem report, published on March 27th, which announced that over 6.5 million ICP tokens were pledged to support decentralization. The commitment was facilitated via Internet Computer's Service Nervous System (SNS), a framework that allows protocols to evolve into decentralized autonomous organizations (DAOs).
Various ICP initiatives and dapps that received assistance through SNS decentralization include the decentralized messenger OpenChat, metaverse platform Dragginz, blockchain search engine Kinic, "Web3 TikTok" Hot or Not, the initial ICP memecoin called Ghost, decentralized verification-as-a-service platform Modclub, on-chain gaming platform BOOM DAO, and the social dapp Catalyze.
Lomesh Dutta, Vice President of Growth at DFINITY, praised the success of the SNS framework as a significant achievement in the international decentralized governance field due to its novel technology stack and multiple network connections.
Furthermore, the DFINITY Foundation disclosed a significant rise in blockchain gaming activity on Internet Computer, attributing it to low transfer charges and high scaling potential. Additionally, in 2023, DFINITY awarded $6.25 million via ecosystem grants to support the development of 239 projects in 41 countries. The report also noted a 121% year-on-year increase in ICP's overall network usage, hinting at consistent growth throughout the ecosystem.
According to DefiLlama, January 1st marked the start of a steady increase in decentralized finance (DeFi) on ICP, with the total value locked (TVL) rising 24% to $27 million. There has also been a significant demand for ICP following its recent advancements in artificial intelligence. On March 22nd, via a post, DFINITY CEO Dominic Williams showcased what he alleged was an unprecedented step: a complex AI operating as a blockchain-based smart contract on the Internet Computer, which sparked a 50% surge in ICP prices that peaked at just under $20 on March 26th. Nonetheless, the ICP price remains 97% lower than its May 2021 peak of $700.
Published At
3/27/2024 4:00:00 PM
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