QUAI NETWORK TOKENOMICS
When determining whether a cryptocurrency project has future growth potential, tokenomics are a crucial aspect to take into account. All investors in digital assets should become familiar with this word now more than ever as the number of coins and tokens on the market keeps expanding.
A key component of the cryptocurrency ecosystem is tokenomics, which enables projects to thwart bad actors, foster trust, and establish a robust, long-term environment. Strong tokenomics encourage early adopters and promote a token’s value over the long term, while also limiting inflation and fostering sustainable growth.
Quai Network has good tokenomics properties. The Quai tokenomics are under ongoing development. The information released by the team is not final, and is subject to change before Quai Network’s Mainnet launch.
TOKENOMICS
Quai Network greatly boosts transaction throughput by fusing many blockchains. The network’s base token is $QUAI. Prime, Region, and Zone are the three different types of chains that make up the modular blockchain network known as Quai.
The Quai token serves as the foundation of the Quai Network, ensuring network security, spam resistance, and straightforward value exchange in a decentralized environment.
In order to reduce short-term inflation and long-term deflation, Quai Network has a hard-capped token supply.
- Adoption Incentives:- A quarter of the tokens are set aside for adoption bonuses that aim to secure crucial integrations for the Quai Network. Partnerships with Fortune 500 businesses, governments, and underserved societies might be one way to achieve this.
- Mining:- Block rewards for miners will be set aside as 20% of the entire supply of Quai Network. Similar to other Proof-of-Work algorithms, Quai Network rewards miners who confirm a valid block that is disseminated to the whole network, encouraging charitable hashpower allocation.
The payouts for mining blocks in the Prime, Region, and Zone chains of the Quai Network vary according to the hierarchy level the miner has successfully mined the block in because these chains have varying degrees of difficulty.
- Foundation:- The Foundation receives 15% of the tokens. These tokens will be used to fund the protocol as well as other ecosystem-building initiatives like increased marketing and business growth. The vesting term for these tokens is 10 years, and they will burn if they are not used.
- Strategic Partners:- Strategic partners who support Quai Network’s objectives and ideals receive 15% of the tokens.
- Infrastructure Partners:- Infrastructure partners who are committed to assisting Quai Network become the most widely used blockchain platform to date will receive 5.5% of the tokens. These services range from node hosting to mining pool management to RPC accessibility, among others. We intend to make use of these partners to advance ongoing decentralization initiatives in the long run.
- Founders:- For their ongoing work in creating the Quai Network protocol and ecology, the founding members of Dominant Strategies have received a 5% portion of the supply.
- Bounties:- Individuals who produce contributions in the form of written code, content, media, and other related kinds of ecosystem promotion will receive 5% of the token supply.
- Testnet Incentives:- Individuals that contributed their time and hashpower to Quai Network’s testnets will receive 0.5% of the total token supply as compensation. The dispersed community of devoted Testnet users has been and remains a crucial component of Quai’s development process. Individuals that participate in Quai’s Mainnet Rewards program, giveaways, and other events leading up to the launch of the Mainnet will get tokens in accordance with the reward structure that is laid out before each Testnet.
- Contributors:- The Quai Network ecosystem’s core contributors will receive 4% of the token supply. These tokens are distributed to people and organizations working on the basic infrastructure and tooling for the Quai Network.
- Community:- A communal allocation has been set aside for 3% of the supply. The specifics of this allotment have yet to be revealed
- Exchange Liquidity:- To help exchanges get started, Quai Network will give them 2% of the total token supply as early liquidity. Before there is enough user-provided liquidity, this liquidity will be utilized to handle the initial flood of adopters following Mannet launch.
Following the launch of the Mainnet, the Quai Foundation will make use of the tokens allotted to it to create alliances that encourage users and developers to conduct transactions and innovate on the Quai Network.
The Quai Foundation intends to collaborate with nation-states, established businesses, startups, local authorities, and more to develop special opportunities for both new and current users to engage in a global economy. The Quai Foundation will foster the development of the strongest and most decentralized financial ecosystem to date through grants and partnerships.
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