ICON

What is ICON (ICX)?

ICX is the native token of the ICON network. ICON is a decentralized layer 1 network that acts as multi-chain bridgeconnecting Binance Smart Chain, Ethereum, Moonriver, Polkadot, as well as many other blockchains.

ICON is known for its unique Blockchain Transfer Protocol (BTP), which enables cross-chain operations such as token exchange and communications. Its compatibility aims to accelerate the mass adoption of cryptocurrencies and blockchain technology in general.

Who founded ICON?

One of the co-founders of ICON is Min Kim. He is a prominent figure in the East Asian blockchain space and previously served as Chief Strategy Officer at fintech giant DAYLI. Additionally, Kim is part of ICONLOOP, a Web3 blockchain development company.

Prior to the release of Mainnet ICON held initial coin offering (ICO) in September 2017. During this time, the price of ICX raised for tokens was US$43 million, which was about 50% of the token supply available at that time.

ICON’s main goal was to create a platform that will ensure compatibility between different blockchains. Decentralized blockchain-based networks usually cannot communicate directly with each other, and users have to overcome various obstacles to conduct cross-chain transactions.

ICON aims to be the solution to this problem. By enabling multi-chain communication, the platform hopes to improve the cryptocurrency adoption process and simplify the process of trading various assets without compromising the security and decentralization of each bridge network.

In January 2018, ICON was officially launched. At that time, ICX was valued at approximately $10. The first months on the market were very volatile, with the asset experiencing both sudden ups and downs. The first year on the market ended on a lower note, with ICON’s price falling to $0.20.

Over the course of about two years, from late 2018 to late 2020, the token stabilized while volatility remained low and the value remained below $1. However, 2021 saw even more activity in the token market. The price of ICX rose to almost $3 twice – in April and November.

What are the features of ICON?

ICON is an inflation asset. It does not have a set maximum supply limiting the number of ICON tokens in circulation. The price of ICX may be more difficult to predict than the price of a deflationary asset. However, according to the protocol, the inflation rate is set at 36 million new ICX issued annually. The inflation rate can be changed by management vote.

The main service provided by ICON is Blockchain Transfer Protocol (BTP). According to the platform, there is no limit to the number of connections that can be established using BTP. The technology does not depend on the blockchain. This means that it can be implemented on any network to connect two blockchains and ensure interoperability.

The protocol uses decentralized relays to ensure the transmission of multi-chain messages. All messages are checked within the chain. BTP not only enables regular cryptocurrency transactions and communication, but also transfers ownership of NFTs. It makes a complex process easier cross-chain verification of NFT ownership.

In addition, the ICON network can be used to support DeFi technology, in particular decentralized applications (dApps). The platform has its own decentralized exchange (DEX) that enables faster cross-chain transactions through gateways. The ICON crypto ecosystem is without KYCmaking it both decentralized and anonymous.

Developers are offered the opportunity to participate in Contribution Proposition System (CPS). This is an ICON grant program that provides financial support for development, marketing and building the blockchain community. All funds are decentralized. Due to the relatively volatile price of ICX, grants are paid using billion US dollars stablecoin at a predictable rate.

The ICON network is protected using Delegated Proof of Stake (DPoS) consensus mechanism. Two types of ICON coin holders are part of this process: stakeholders and validators. Stakeholders must delegate a share of their assets to selected validators.

Both delegators and validators can profit from their contributions and active participation. Stakeholders who delegate their assets can receive passive income adjusted according to the ICON price of their staked amount. Technical validators receive transaction fees as block rewards.

DPoS processes are closely related to network management. ICON operates as a decentralized autonomous organization (DAO). Validators are directly involved in governance processes. They perform responsibilities both inside and outside the network and are considered Public Representatives (P-Reps) ICON networks.

Validators wishing to become P-Reps must pay a registration fee. The ICON price for participation in the DAO is 2000 ICX. Network nodes may be penalized for failing to actively participate in network processes. Users who do not vote for network proposals receive Penalty for missing a vote for a network proposal, which influences their remuneration.

As part of their network responsibilities, P-Reps produce blocks, oversee ongoing server maintenance, vote on network proposals, and manage the contribution proposal system. Offline, users are encouraged to participate in social media discussions and act as community moderators. Their main task is to inform potential users about ICON.