From 8d4d12cfa71be869c08eea7b81681bb0266af4aa Mon Sep 17 00:00:00 2001 From: Marco Walz Date: Fri, 24 Apr 2026 14:56:18 +0200 Subject: [PATCH] docs(cycles): move XDR peg subsection under ICP tokens section The XDR peg directly explains the conversion rate mentioned in the ICP tokens section, so it reads more naturally there than under "What are cycles?". --- docs/concepts/cycles.md | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/docs/concepts/cycles.md b/docs/concepts/cycles.md index 33a9e323..7bc8adba 100644 --- a/docs/concepts/cycles.md +++ b/docs/concepts/cycles.md @@ -18,16 +18,16 @@ Cycles are the unit of payment for resources on ICP. Every canister operation th Query calls are free: they run on a single node, do not go through consensus, and are not charged. -### Cycles are pegged to XDR - -Unlike ICP tokens, whose price fluctuates with markets, cycles are pegged to the [Special Drawing Right (XDR)](https://www.imf.org/external/np/fin/data/rms_sdrv.aspx): a basket of currencies maintained by the IMF. **1 trillion (T) cycles = 1 XDR** (approximately $1.30–$1.40 USD). This peg makes infrastructure costs predictable for developers regardless of ICP token price movements. - ## ICP tokens and cycles Cycles are obtained by converting ICP tokens. The conversion happens through the **Cycles Minting Canister (CMC)** (`rkp4c-7iaaa-aaaaa-aaaca-cai`), a system canister that accepts ICP and mints the equivalent value in cycles at the current XDR exchange rate. Once minted, cycles are held by principals via the **cycles ledger** (`um5iw-rqaaa-aaaaq-qaaba-cai`) and transferred to canisters to fund their operation. Cycles flow in one direction: they can only be burned (consumed by canisters), never converted back to ICP tokens. +### Cycles are pegged to XDR + +Unlike ICP tokens, whose price fluctuates with markets, cycles are pegged to the [Special Drawing Right (XDR)](https://www.imf.org/external/np/fin/data/rms_sdrv.aspx): a basket of currencies maintained by the IMF. **1 trillion (T) cycles = 1 XDR** (approximately $1.30–$1.40 USD). This peg makes infrastructure costs predictable for developers regardless of ICP token price movements. + ## What canisters pay for ### Compute