A New Era for Internet Computer: How ICP Will Benefit From Caffeine AllinCrypto November 10, 2025
Internet Computer (ICP) is entering a transformative chapter as DFINITY, led by founder Dominic Williams, revealed Internet Computer 2.0 and DFINITY 2.0 as part of the wider launch of Caffeine.
According to Williams, new initiatives for Internet Computer aim to evolve ICP into a fully AI-integrated decentralized cloud computing firm, capable of hosting self-writing apps that users create simply by interacting with Caffenie’s UI.
This new initiative aims to expand ICP’s blockchain utility but also strengthen ICP’s position as a an asset powering, now, one of the most advanced networks in Web3.
Make on-chain dApps with Caffeine
At the center of Dfinity’s new phase is Caffeine, an AI-powered creation platform built on Internet Computer. Caffeine allows anyone, without technical know-how, to build decentralized applications, websites, and even enterprise systems by describing their ideas in a text box.
Caffeine programs, tests, and deploys the decentralized application directly onto the Internet Computer network, making it fully on-chain. This breakthrough could enable everyday users to create decentralized applications of their own and deploy them on-chain for global users.
The breakthrough of the application can be seen in the ICP token, as its price recently surged 78% over the last 7 days.
Each dApp created and hosted through Caffeine consumes cycles, the Internet Computer’s resources, which are purchased using ICP tokens from the open market.
If millions of users come to Caffeine to utilize its dApp creation services, activity will drive ICP token demand, linking ecosystem growth directly to token scarcity.
ICP: Deflationary Tokenomics
Dfinity is also moving to implement deflationary mechanisms across the ICP network’s tokenomics. Williams outlined plans to reduce governance inflation, adjust node provider rewards, and introduce new revenue-sharing models in which 20% of all cycle conversions are permanently burned.
This ensures that as more computing power is used, ICP becomes increasingly scarce, creating a long-term deflationary cycle.
With AI at its core, Internet Computer 2.0 aims to become a mainstream decentralized cloud platform capable of rivaling Web2 infrastructures in performance, scalability, and cost-efficiency.
The network fully supports on-chain, tamperproof applications supported by a robust network. This is an advantage that becomes even more significant as AI-generated software becomes more prone to trust issues.
ICP’s new role as the fuel for computation, storage, and AI interactions ensures newfound demand can grow with increased network adoption. With Caffeine, ICP could become one of the most utility-rich yet deflationary tokens in crypto.
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