Dfinity unveils 'open algorithmic governance system' as final milestone before launch
September 30, 2020, 12:48PM EDT
1 min read
Dfinity, the much-hyped and long-anticipated blockchain-based cloud computing project, today unveiled a token-based governance system that will be used to control its “internet computer.”
It’s the final milestone before the network's public launch, which will occur later this year, according to a press statement.
Dfinity, which launched in 2018 and has raised more than $160 million in venture capital, aims to establish the basis for a new decentralized internet. In June, the network opened its doors to third-party developers. The newest piece, which it calls the “Network Nervous System” (NNS) is an “algorithmic governance system that onboards independent data centers to the network.”
At the center of the new governance system will be a token, called ICP (formerly called DFN). According to the release, ICP token holders will be able to lock their tokens within the NNS to create “neurons” that allow them to vote on new proposals.
The ICP tokens can also be used to power decentralized applications, similar to the way Ethereum gas works. Specifically, the tokens can be burned to create new “cycles,” which the company calls “the fuel” to run software on Dfinity.
Since the cycles will have a stable value, they will also function as a stablecoin for use in decentralized finance (DeFi) applications on the network, according to the release.