How to Convert ICP to Cycles

To convert ICP tokens to cycles on the Internet Computer Protocol (ICP) network, you use the Network Nervous System (NNS), specifically through the NNS frontend dApp or compatible wallets that support cycle creation. Here’s how it works:

1. NNS Frontend dApp:
   • Access the NNS dApp via a supported wallet like the Internet Identity or compatible wallets (e.g., Plug, Stoic, or Bitfinity Wallet).
   • Navigate to the Cycles Minting Canister section in the NNS interface.
   • Select the option to convert ICP to cycles. You specify the amount of ICP to burn, and the system converts it to cycles based on the current rate (1 XDR ≈ 1 trillion cycles, where XDR is the IMF’s Special Drawing Rights unit).
   • The converted cycles are deposited into a cycles wallet or directly into a target canister.
2. Supported Wallets:
   • Wallets like Bitfinity, Plug, or Stoic integrate with the NNS and allow you to convert ICP to cycles. You typically find an option like “Top Up Canister” or “Convert to Cycles” in the wallet’s interface.
   • For example, in Bitfinity Wallet, you can select a canister, choose to top it up, and the wallet handles the conversion of ICP to cycles.
3. Direct Canister Top-Up:
   • If you’re a developer or canister owner, you can use the DFX command-line tool or SDK to convert ICP to cycles programmatically. The command dfx canister –network ic topup <CANISTER_ID> <AMOUNT> allows you to burn ICP and add cycles to a specific canister.
   • Alternatively, you can call the Cycles Minting Canister (CMC) directly using canister APIs if you’re building a custom solution.
4. Third-Party Platforms:
   • Some platforms, like CycleWorks or other cycle faucets, allow users to purchase or obtain cycles by converting ICP. These platforms interact with the NNS’s Cycles Minting Canister on your behalf.

Key Notes:

• The conversion rate is tied to XDR, so 1 ICP’s value in cycles fluctuates based on ICP’s market price. As of early 2025, 1 XDR (≈1.3 USD) yields 1 trillion cycles.
• You need an Internet Identity or compatible wallet to interact with the NNS.
• Ensure the target canister’s ID is correct when topping up, as cycles are non-transferable between canisters once allocated.

For step-by-step guidance, check the DFINITY documentation (https://internetcomputer.org/docs/current/developer-docs/gas-costs/cycles) or use the NNS dApp at https://nns.ic0.app/.

On the Internet Computer Protocol (ICP), cycles are a computational resource used to power and operate canisters, which are the smart contracts or computational units on the ICP network. Here’s a concise summary of what cycles are used for:

1. Computation: Cycles pay for the execution of code in canisters, covering CPU usage for processing transactions, running applications, or executing smart contract logic.
2. Storage: Cycles fund the storage of data in canisters, including persistent memory for applications, user data, or files hosted on the ICP network.
3. Network Communication: Cycles cover the cost of inter-canister calls and data transfers between canisters or with external users, ensuring seamless communication across the network.
4. Canister Maintenance: Cycles are used to keep canisters active. Each canister requires a minimum cycle balance to avoid being deleted, ensuring continuous operation.
5. Resource Allocation: Developers use cycles to allocate resources for deploying and scaling decentralized applications (dApps), websites, or services hosted on ICP.

Key Points:

Cycles are non-transferable between canisters and are consumed based on usage (e.g., computation, storage, or bandwidth).

Cycles are obtained by burning ICP tokens via the Network Nervous System (NNS) or compatible wallets, with a conversion rate pegged to 1 XDR ≈ 1 trillion cycles (~1.3 USD as of early 2025).

They are not a currency but a stable-cost resource, insulating developers from ICP’s price volatility.