Internet Computer (ICP) Surges on Mission70 Initiative

The DFINITY Foundation released the MISSION70 whitepaper on Jan. 13, 2026, proposing to cut ICP token inflation by 70% by the end of 2026.

• Supply-side measures are expected to account for 44% of the reduction, including lower voting and node provider rewards and simplified maturity modulation mechanisms.

• Demand-side measures will depend on increased network activity, including AI-powered on-chain applications and cloud engine products, with computational fees burning more ICP to create deflationary pressure.

The MISSION70 whitepaper outlines a dual strategy to reduce ICP token inflation from 9.72% to approximately 2.92% by the end of 2026. This plan includes reducing voting rewards, node provider payouts, and capping reward pools to cut minting rates. These measures are projected to reduce inflation by 44% on the supply side, with the remaining 26% expected from increased demand-side activity.

The success of MISSION70 will depend on the implementation of structural reforms and the market's response to the changes in supply dynamics.

On-chain data shows market conviction, with ICP leading large-cap assets over the past week by market cap gains. The token climbed nearly 26% in the past 24 hours alone, placing it atop the daily leaderboard among the top 100 cryptocurrencies. On-chain metrics suggest holders are positioning for longer-term exposure. Data shows ICP exchange balances declined by more than 58% over the past 24 hours, a pattern typically associated with reduced selling pressure. Network usage has also accelerated, with Chainspect recording approximately 90 million transactions in one day, marking the Internet Computer's highest daily activity in over a month.

How Will Mission70 Affect ICP's Long-Term Value?

The MISSION70 plan aims to create a deflationary model by reducing token issuance and increasing token destruction through computational fees. This dual approach is expected to create a virtuous cycle: high-performance compute attracts dApps, which in turn burn ICP for cycles, leading to deflation and increased token value. Analysts have noted similarities with Bitcoin's halving and Ethereum's EIP-1559, suggesting the plan could significantly alter ICP’s investment thesis by restoring scarcity and enhancing long-term value.

The whitepaper also highlights the convergence of ICP with AI narratives through platforms like Caffeine AI and specialized AI cloud engines. This positions ICP as a full-stack on-chain cloud capable of running Large Language Models (LLMs). As more AI applications and enterprise-grade cloud engines are deployed on the Internet Computer, the number of ICP tokens burned through computational fees is expected to increase significantly.

What Are the Risks of Mission70 Implementation?

Despite the optimistic projections, the success of MISSION70 will depend on ecosystem adoption, TVL growth, and macroeconomic stability. The remaining 26% of the reduction is expected from increased network activity, which will require significant participation from developers and users. If the market does not respond positively to the changes in supply dynamics, the anticipated deflationary pressure may not materialize as expected.

Technical indicators suggest overbought conditions, raising questions about the sustainability of the rally above $4.00. Market response has been positive, with ICP surging 39% in the past week and on-chain data indicating growing long-term holding behavior and increased network usage. However, if the market experiences a correction, the impact on ICP's price could be significant.

On-chain data shows a significant 63% drop in ICP exchange balances over the past 24 hours, indicating reduced short-term selling pressure and increased self-custody and staking activity. The price is forming a multi-year bullish flag pattern on the weekly chart, suggesting a potential continuation of the upward trend if key resistance levels are broken. Traders are watching for a potential breakout above $7.5, with a possible target at $10 if bulls maintain dominance.

Weekly burn figures have reached the second-highest level since September 2024, according to @icterminal, adding further support for the token’s price movement. The whitepaper is expected to shift investor focus back to ICP’s tokenomics and long-term value proposition. As the broader crypto market pauses to digest recent gains, ICP is showing standout strength, with its price surging more than 25% in the last 24 hours, extending its advance for a second straight session.

Trading volume has exploded from roughly $70 million to about $700 million, pointing to a sharp surge in participation and a clear shift in short-term sentiment. This volume surge has been attributed to the release of the Mission 70 tokenomics whitepaper, which has generated significant media coverage and investor interest.

Internet Computer (ICP) has remained in a broader downtrend since 2024, and the intermittent bullish bursts along the way have largely failed to shift the higher-timeframe structure. Bulls recently stepped in at a critical support area just below $3, spurring a sharp rebound. ICP is now consolidating beneath a key supply zone between $4.8 and $5.9. A clean breakout above this band would be meaningful. With volume and volatility already elevated, a move through resistance could open the door for a continuation rally toward higher targets.

Momentum indicators are turning supportive, with the MACD having flipped bullish and the RSI rising in a steep, recovery-style curve, reflecting strengthening demand as the rally builds. ICP has bounced from multi-year lows near $2.9, but it hasn’t yet pushed decisively into the overhead resistance band. A breakout above $5.9 could signal a new phase of buying interest and renewed optimism among investors.

Overall, the MISSION70 whitepaper represents a significant strategic shift for the Internet Computer ecosystem. By addressing both supply-side and demand-side dynamics, the initiative aims to create a sustainable deflationary model that could enhance the long-term value of ICP. While the market has responded positively to the announcement, the success of the plan will ultimately depend on the execution of the proposed measures and the continued growth of network activity.