An exciting new investment opportunity is now available! With the click of a button, everyone who has staked ICP in neurons using the NNS dapp (decentralized application) can reap the fruits of community fund endeavors.
What is the NNS dapp?
All modifications to the configuration and behavior of the Internet Computer are controlled by a democratic, algorithmic governance system known as the Network Nervous System (NNS). You can think of the NNS as the brain of the Internet Computer. Using the NNS dapp, neurons can vote on network proposals in proportion to their ICP stakes. Thus, decisions emerge in a decentralized manner from the community's collective will. The weight of an individual neuron's vote can be further amplified by its age and by increasing its dissolve delay.
At the time of writing, over $10 billion in ICP has been staked in the NNS. By January 2022, it is possible that $1 billion in ICP could be available for the community fund.
How does the community fund work?
As Dominic Williams explains, the ICP in staked neurons can be made available to developers in the Internet Computer's burgeoning software ecosystem via decentralized auctions. By joining the community fund (an irreversible decision) and voting on related NNS proposals, a neuron contributes a portion of its staked ICP to help jumpstart DeFi, SocialFi, and GameFi ventures. In return, the neuron will share in the gains or losses of these ventures. Potentially, participating in the community fund could vastly increase ICP earnings.
Why should you join the community fund?
If you enjoy speculative investment and don't mind taking some risks in the pursuit of massive gains, then the community fund is for you. Suppose you want to participate directly in fueling the growth of the Internet Computer's already vast ecosystem into a global juggernaut of top-tier services. In that case, the community fund is also for you.
Do you only want to contribute some of your staked ICP? No worries! Each of your neurons gets a choice to join or not. You can commit as many (or as few) as you want.
What should you consider before joining the community fund?
If you are counting on constant returns or expecting a specific minimum passive income from your neurons, the community fund option may not be suitable. Moreover, it may take longer for investments in the community fund to pay off, so joining with neurons with shorter dissolve delays may not be best.
There is no shame in waiting for more details before deciding.
- Disclaimer: The views and opinions expressed on this website are solely those of the original author and other contributors. These views and opinions do not necessarily represent those of the Dfinity Community staff and/or any/all contributors to this site.
Comments are for members only. Join the conversation by subscribing 👇.