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 2 weeks 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.