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Dfinity unveils its open algorithmic governance system with its launch likely to break into the top 5

Photo of: Janeth Diamond
by Janeth Diamond

DFINITY announced yesterday about the last leg in its roadmap with the release of its final milestone called Sodium before the network’s official launch later this year. The new release will represent a feature-complete version of the network. They have also officially announced and given details about its governance systems known as Network Nervous system or NNS. 

The new governance system NNS will use its proprietary token called ICP to promote and encourage operations on its much-touted ‘Internet Computer’. When it is launched, there will be  469,213,710 ICP tokens in existence. This number has been determined by the number of tokens that were issued previously through pre-sales and other rounds when distribution took place. 

NNS recently undertook a fundraising effort and offered ICP tokens at the rate of around $4.50. At the current moment, the future price of the asset is over $17. Considering this hypothetical value is true, it would endow the token with a huge market cap of around $8 billion during its launch time. If any of this becomes true, it might as well be straightforwardly placed in the top 5 in terms of market cap on CoinMarketCap.

But Williams does not seem to be enticed with this kind of hypothetical statistic and explains:

“…we are focused on the technology, making sure the Internet Computer functions successfully, and the immense positive impact and benefits it will bring the world, so pay little attention […] We think in the long term, whereas markets, especially crypto markets, are very volatile and short-term indicators.”

DFINITY was officially launched in 2018 and has raised more than $160 million in Venture Capital. It aims to establish fairgrounds for a new decentralized internet. In the month of June, it opened its doors to third-party developers. The newest addition called the Network Nervous System is an algorithmic governance system that onboards independent data centers to the network. 

The NNS will allow ICP holders to lock tokens within to create neurons. With this, the users can get voting rights on proposals that will have an impact on the network’s operation. The participants can also earn rewards in the form of extra ICP tokens. The ICP tokens can also be used to power decentralized applications similar to the lines of how Ethereum gas works. The tokens can be burned to generate new cycles which are also known as ‘the fuel’ to run software on the platform.

The cycles being of stable value will also function as a stablecoin for its utility in a DeFi application on the network. The data centers which would be running the special hardware note establishing its internet computer will also be able to earn ICP token rewards.

DFINITY chief scientist and founder Dominic Williams gave the below statement about the launch.

“It is the technical solution to the systemic problems big tech have created with their monopoly over the internet […] The NNS is the catalyst for the open internet we were promised in the 1990s, and it ensures the future of the internet remains open and free.”