ICX is ICONs native governance token. It can be used to stake, vote, as transaction fee payment as well as for computational services on the ICON Network.
ICX can also be bought and sold on cryptocurrency exchanges; however, before buying any ICX, you should make sure you’re aware of all the factors that could potentially affect its value. In this article I will point out all the factors why I think ICX is on the way to become a deflationary asset in the future and this fact alone will increase its value and demand significantly. Let’s take a dive into ICONs economic policies.
ICX Issuance System
As indicated in the ICON Incentive Scoring System IISS, the ICON Network incentivises two different contributors in the ICON ecosystem:
The Block Producers (P-Reps) and ICONists that stake and delegate their votes.
A Public Representative, contributes to the ICON Network through both block validation and participating in governance decisions. ICX holder lock up their funds and delegate their attributed votes (1 ICX = 1 vote) to a P-Rep team, which in their opinion provides the best infrastructure and skillset to keep the network secure and nurture the ecosystem.
Both receive rewards in form of I_Score, which is minted by the public treasury and can be claimed every 24 hours (or every 43,120 blocks) and exchanged for ICX (1 ICX = 1,000 I_Score).
The rewards for P-Reps depend on their i_rep value, their number of votes and their current ranking. I_rep is a governing variable that is used to calculate the monthly reward for the top 22 main P-Reps and 78 Sub P-Reps. It is defined as the value that a P-Rep calculates to be their monthly cost for operating as an active P-Rep team. Half of i_rep is used to reward P-Reps based on how many votes the P-Rep has received. The other half is issued to each P-Rep that is currently among the top 22. To avoid further confusio...