Finances

Internet Computer and ICP: understanding the network and token

Internet Computer (ICP)

A technology can be interesting without its token rising in price. To understand Internet Computer, separate the infrastructure it proposes, the resources its applications consume and the ICP asset traded in a market.

This page’s former description of ICP as a “hidden gem” did not provide a sound basis for an investment recommendation. This version explains the concepts and the questions that remain.

The network and token serve different purposes

The ICP economic documentation describes token use for governance and conversion into computing resources. It also describes token issuance for rewards and token destruction through cycle conversion. Looking at one mechanism alone therefore does not explain the entire change in supply.

What cycles are

Network programs, called canisters, consume cycles for resources such as execution and storage. The cycle documentation explains that cycles come from converting ICP and use a value reference linked to Special Drawing Rights, a currency basket. Cycles and ICP’s market price are different measures.

When evaluating an application, ask who pays for those resources and what happens if they are not replenished. When evaluating a token purchase, the question is different: what price and liquidity risks would you take?

Governance participation is not a bank deposit

The Network Nervous System manages protocol decisions. Its documentation describes locking ICP into participation units called neurons to vote and receive rewards. Check locking and release conditions before participating; rewards paid in tokens do not ensure a gain in euros.

A framework for reading project announcements

  • Usage: identify the activity being measured, its period and methodology.
  • Cost: distinguish a developer’s resource cost from the token’s trading price.
  • Control: check who can change an application and its rules.
  • Access: understand custody, withdrawals and possible lockups.

The project’s documentation is a primary source about its design, but the project has a direct interest in its development. This is not an independent assessment of investment returns.

Do more applications guarantee a higher price?

That conclusion does not follow from one figure. Actual usage, token supply, demand and market conditions would all need examination. Even detailed analysis can be wrong. Avoid turning a technical announcement into a profit forecast.

Before following a promotional selection, read how to assess cryptocurrency rankings.

Sources checked on 22 September 2026. Educational information, not a purchase recommendation or personalised advice.

How this guide is produced

We publish with visible editorial standards, correct errors and show a review date only after a person has checked and materially updated the content.

About Andres Dias

Buscatea contributor. See our editorial policy for publication and correction controls.

Sources and references

  1. ICP economics —
  2. ICP cycles —
  3. ICP governance —

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