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docs(cycles): move XDR peg subsection under ICP tokens section #142

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marc0olo merged 1 commit into from
Apr 24, 2026
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docs(cycles): move XDR peg subsection under ICP tokens section #142

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8 changes: 4 additions & 4 deletions docs/concepts/cycles.md
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Expand Up @@ -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
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