Dom’s recent statement on social media about the Internet Computer Protocol (ICP) has sparked conversations across the crypto community. With unlocks nearly complete and a sustainable financial approach, ICP stands in stark contrast to other blockchain projects grappling with future unlock pressures.
DFINITY, the team behind ICP, last fundraised off-market in 2018, ensuring that all contributors are vested. The 2017 ICO participants, who entered at three cents, have had a structured unlocking schedule spanning from May 2021 to 2025, with the vast majority already completed. This structured approach provides a sharp contrast to the practices seen elsewhere, where continuous fundraising and discounted raises create an uncertain market conditions.
Take Ava Labs as an example. Just six weeks ago, it raised $250 million at a substantial discount to market prices, adding yet another future unlock to its financial roadmap. On top of that, AVAX prices were propped up through strategic acquisitions of unlocking tranches, including a recent $60 million swap with Luna. These approaches, while effective in the short term, raise concerns about long-term sustainability.
Another instance is NEAR Protocol. In early 2022, NEAR raised $500 million at a discount of approximately 40% to its market price at the time, which was around $8.50. The sheer volume of capital yet to unlock creates a scenario where breaking through price ceilings becomes increasingly difficult. Large-scale unlocks across various chains continue to pose challenges, but the distribution of these problems is far from uniform.
ICP finds itself in a strong position, avoiding many of these pitfalls. A key factor in its stability is DFINITY’s cautious treasury management. Unlike projects that rely heavily on market mechanics to sustain their financial models, DFINITY prioritises technological advancements and grassroots adoption.
The focus on innovation has led to developments such as Service Workers Internet (SWI), which plays a crucial role in enhancing the efficiency and functionality of decentralised applications. Beyond technical progress, the ICP community has become a driving force, fostering organic growth that further strengthens the ecosystem.
ICP’s recent deflationary trends mark a significant moment. With tokenomics designed to balance supply and demand, the network has repeatedly entered deflationary phases, setting a course for long-term sustainability. This contrasts sharply with projects that continuously issue new tokens to stay afloat, inadvertently creating persistent sell pressure.
Through a combination of conservative financial strategies and technological leadership, ICP remains on firm ground, providing a viable blueprint for sustainable blockchain development. While many chains navigate the complexities of unlocks and price ceilings, ICP’s trajectory signals confidence in its ability to adapt to the shifting dynamics of decentralised networks.
