DFINITY Prepares for Launch of Performance-Based Rewards to Curb ICP Inflation

The DFINITY Foundation has announced a set of changes to the Internet Computer’s node onboarding system ahead of the introduction of performance-based rewards. The update is aimed at improving fairness in node rewards and addressing issues linked to excess ICP issuance from underperforming or inactive nodes.

According to the foundation, the existing ‘node_allowance’ fields in the NNS Registry will be retired and replaced by a new parameter called max_rewardable_nodes. This new field, structured as a JSON map, will specify the maximum number of nodes of each type for which a node operator can earn rewards. For example, a node operator’s record might include entries such as “{ ‘type1.1’: 10, ‘type3.1’: 24 }”, setting clearer limits on reward eligibility.

The switch from the old structure to the new one is scheduled to begin on 10 November 2025, with all conversions handled automatically by the system. Node operators will not need to take manual action during the transition. However, until the new performance-based reward model officially takes effect on 14 November, updates to node operator records will still need to include the older rewardable-nodes field alongside the new parameter.

The forthcoming performance-based rewards system marks a move toward a more transparent and merit-driven model of rewarding node providers. Previously, some operators were able to benefit from static allowances regardless of actual node performance or contribution. By tying rewards directly to performance metrics, DFINITY aims to encourage higher standards of reliability, uptime, and operational integrity across the network.

The change also comes at a time when inflationary pressure on ICP has been a topic of discussion among the community. Under the previous setup, some node providers were accused of taking advantage of reward mechanisms to sell or short ICP on centralised exchanges, leading to excess supply and price pressure. The new model is expected to reduce such distortions by tightening reward criteria and aligning them with measurable node output.

DFINITY has said that updates to the Node Provider documentation will be published soon to clarify the exact technical process and parameters involved in the rollout. The foundation has also indicated that the new system will improve accountability across the node ecosystem, ensuring rewards go to those contributing most effectively to the network’s stability and scalability.

Performance-based rewards form part of DFINITY’s broader strategy to make the Internet Computer self-sustaining and economically efficient. By rewarding quality rather than quantity, the model reinforces decentralisation without sacrificing performance. As the transition approaches, node operators and community members alike will be watching closely to see how the changes reshape the economics of participation on the ICP network.

The upcoming update represents another stage in DFINITY’s ongoing effort to refine how the Internet Computer manages resources, incentivises performance, and maintains a balanced token economy. While the implementation is expected to be smooth, its impact on long-term network health could be one of the most closely observed developments in the project’s evolution.


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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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