Internet Computer ICP cuts inflation with 80/20 Cloud Engine model

Cloud engine revenue split change

Internet Computer, a blockchain network for running software on-chain, will change how its cloud service pays participants. The new Cloud Engine model allocates 80% of revenue to node providers and 20% to burning the ICP token. Node providers operate the hardware that runs the network, so their income will now depend on actual cloud usage instead of fixed rewards. The 20% share will remove ICP from circulation through token burns when customers pay for compute resources.

"Under the old model, node providers were compensated solely for operating nodes; in the new model, 80% of Cloud Engine revenue will be allocated to the nodes providing the power, and 20% will be used to burn ICP.", 21 February 2026. — DFINITY Foundation, protocol development organization, Internet Computer

Mission 70 targets lower inflation

The DFINITY Foundation has introduced a plan called Mission 70 for Internet Computer economics. The goal is to cut ICP token inflation by about 70% by the end of 2026 compared with early 2026 levels. The plan combines lower token minting on the supply side with higher token burns driven by cloud usage on the demand side. This roadmap sets a clear numerical target but does not guarantee the final outcome.

Supply side cuts to token minting

Mission 70 includes specific projections for new ICP issuance, also called minting or inflation. DFINITY estimates that supply-side measures reduce minting from 9.72% in January 2026 to 5.42% in January 2027, a 44% reduction. These measures mainly adjust rewards for governance voting and for node providers, so fewer new tokens enter circulation each year. The plan does not include market price targets and focuses only on token supply mechanics.

"We estimate that the supply-side measures reduce ICP minting from 9.72% (January 2026) to 5.42% (January 2027), a 44% reduction.", 14 January 2026. — DFINITY Foundation, protocol development organization, Internet Computer

Deflationary goal depends on usage

DFINITY states a long-term ambition to push ICP into a strongly deflationary state using the new model. A deflationary token economy means total supply can decrease over time if burns are larger than new issuance. This outcome depends on how much developers and companies actually use Cloud Engine and other Internet Computer services. If usage grows strongly, cloud payments and related burns increase and deflation becomes more likely under the Mission 70 design.