Quai Network’s economy is built around two native tokens: QUAI and QI. These tokens primarily serve as gas tokens and mining incentives, with a built-in mechanism allowing conversion between them.
Gas Tokens
QUAI: Used for programmable Quai blockchains, enabling smart contracts.
QI: Serves UTXO-based chains, ideal for straightforward exchanges.
Block Rewards
Both tokens are distributed as block rewards during mining, with issuance rates tied to network usage.
QUAI: Issuance rate linked to bits of difficulty, increasing at a diminishing rate to create scarcity.
QI: Issuance rate tied to mining difficulty, making it a proxy for energy costs.
Conversion
Quai’s conversion mechanism allows holders to convert between QUAI and QI, enabling arbitrage opportunities and stabilizing their values. Tokens are locked for 12 hours and not spendable at conversion, but are in the users account and will become available at a certain block after the conversion takes place.
FAQ
FAQ
Question: Why does Qi not have a perfect dollar value?
Qi isn't just another stablecoin. There's no peg for $Qi. Its price is based on an equilibrium incentive, matching production costs to demand in real-time. It’s a living market tied to global energy prices. It's designed to be the lowest volatility unit relative to real-world goods. Think beyond USD. Think global. Think energy. Qi isn't tied to a perfect dollar value because it's designed for more. With built-in mechanisms to manage supply and demand, Qi remains stable in a volatile world. The volatility of energy is actually lower than existing world currencies. The intrinsic value of energy to both man and machine makes it an ideal foundation for a new currency to be built upon.
Question: Won't mining costs vary based on energy source and region?
$Qi, the energy-backed currency will naturally be produced by regions with the lowest energy costs. It's a global market, so expect production hubs in places like the US and regions with renewable energy sources.
Question: Is there a hardcap for the token supply?
Qi does not have a hard cap for the supply but Quai does. Quai total supply will be determined by the emissions rate, not a predetermined cap. To go more into detail on how this works, please view the following page.