ICON just released yet another article that covers the economics of BTP!
Key takeaways:
"The end result of this process is discounted token purchases for ICX holders. For example, let’s say the Fee Aggregation contract holds 1 ETH from fees, and on the market it’s 900 ICX for 1 ETH. ICX holders can start placing bids for that 1 ETH, and maybe the winning bid will be 800 ICX for the 1 ETH. This creates value for ICX, as it will be a token used to purchase other tokens at a discount. And this will be for all assets connected to ICON through BTP.
The ICX proceeds earned from auctioning off fees will be sent to the CPS to be reinvested into the network. When the CPS hits its cap, additional contributions get burned. So BTP will either be adding resources to ICON growth initiatives or burning ICX. Sticking with the previous example, the 800 ICX winning bid for the 1 ETH would be sent to the CPS. If the CPS was already at its cap, then the 800 ICX would be burned. See below diagram for a better understanding of the architecture."
"ICX holders may pre-register a Relay with a minimum stake of 25,000 ICX. The 25,000 ICX will be staked + delegated to avoid opportunity cost. The 25,000 ICX must be held and staked by the Relay, it’s not a DPoS system like P-Reps. The reward for running a Relay will come from inflation and the amount will be decided in the IISS 3.1 economics vote. Relays will be penalized from their staked ICX if they are not live when called upon to relay a message, so those that pre-register should be aware of this risk and pay close attention to BTP announcements to avoid loss of ICX. More details about how to pre-register a Relay will be released closer to ICON 2.0 launch."
