DFINITY Foundation

Synapse.vote (original)

ICDevs.org

CryptoIsGood

Anvil

ICPL.app

ysyms

The Accumulators’ Neuron

RawTech Venture

Paul Young

ICPMANUAL

8yeargangDAO

Isaac Valadez

Krzysztof Żelazko

Nicolas.ic

Smaug’s Neuron for Retail Investors

ICLight.io

Synapse.vote (NEW)

Taggr Network

CodeGov

Sonic AMM

Rakeoff.io

OpenChat

ELNA AI

GEEKFACTORY

ICP Hub México

ICP Hub Poland

Jerry Banfield

WaterNeuron

ICP Hub Bulgaria

Gold DAO

NeuronPool

LORIMER

B3Pay

ZenithCode

Aviate Labs

Internet Computer Association

Arthur’s Neuron (used to be cycle_dao)

Inactive (Request Removal) - The Fools' Court

$STACK

Always Rejects

John Wiegley

Increase cycle costs to offset network overutilization

# Solving ICP's latency problem with a much needed cost increase

This proposal is simple. If you support raising costs to decrease network congestion, vote yes. If you want to keep subsidized ICP compute costs in place and wait another 2-6 weeks for applications to maybe be reliable to use again, vote no.

## The Current Situation

All of ICP has been overloaded for over two weeks, with latencies making applications unreliable. The European subnet that many, including myself have assets on has been essentially unusable for 6 weeks.

People are excited about increased cycle burn, but developers are paying a bigger price as requests to their applications are unusable and frequently time out, forcing some to migrate everything or start over from scratch.

* [A promising on-chain AI app cannot run](https://forum.dfinity.org/t/subnets-with-heavy-compute-load-what-can-you-do-now-next-steps/35762/31)
* A DAO has been forced to completely rebuild from the ground up - x.com/beadle1989/status/1843524802566312040)
* [People's funds are getting stuck & transactions are failing on the top DEX on ICP](https://forum.dfinity.org/t/icp-swap-very-poor-user-experience-me-only/35985/5)
* [People are trying to demo their ICP apps and ICP is not available](https://forum.dfinity.org/t/stability-issue/35748)


Developers were promised $5 a year for a simple application to be reliable. Users were promised web speed on-chain applications. Now DFINITY is recommending that developers pay [$35 a month](https://forum.dfinity.org/t/subnets-with-heavy-compute-load-what-can-you-do-now-next-steps/35762), or $420 a year just for a 1% chance that our canister will execute in a single round, meaning that a user could be waiting up to 40 seconds for a canister paying for that 1% compute to execute on a busy subnet.

From $5 to $420 is a 8300% cost increase for semi-reliable on chain compute. This is unacceptable.

## A Solution - Bump up compute

Since genesis, compute costs have been heavily subsidized to promote developer growth. [The $5/GB/yr estimates were based on optimistic future estimates of hardware costs & protocol capabilities](https://forum.dfinity.org/t/question-regarding-re-exc-1168-add-non-subsidised-storage-cost-on-20-node-subnets-behind-the-flag/15420/15), but the reality of the situation is that ICP is currently at full utilization and we are not deflationary. **If the network is at capacity, ICP should burn close to as much as it mints**.

Building on ICP is cheap. When faced with the alternative of paying an 83X cost increase for compute allocation, most developers would gladly pay 2-3x more as long as they get reliable compute in return. This can be rolled back in the future as the protocol improves its scalability and hardware and protocol costs come down.

Applications on ICP subnets have been unusable for 2-6 weeks. It's too cheap for people to clog up the network. Please raise the prices.


\- With love, a concerned ICPunk.

--- 
> ### Disclaimer
> This proposal was submitted using the NNS Proposal Submission Dapp. Anyone can use this Dapp to submit a proposal by filling out the form and paying a fee, so the source of this proposal cannot be verified. Please keep this in mind and vote responsibly.
> - Website: [nnsproposal.icp.xyz](https://nnsproposal.icp.xyz/) or [uf2fn-liaaa-aaaal-abeba-cai.ic0.app](https://uf2fn-liaaa-aaaal-abeba-cai.ic0.app/)
> - GitHub: [github.com/InternetComputerOG/NNS-Proposal-Submission-Dapp](https://github.com/InternetComputerOG/NNS-Proposal-Submission-Dapp)
> - Created by [Isaac](https://isaac.icp.page/).
--- 



Motion | Increase cycle costs to offset network overutilization (nnsproposal.icp.xyz)