Qubic (QUBIC) Tokenomics

The Qubic Network (QUBIC) tokenomics are designed around a deflationary model that combines continuous emissions with aggressive burning mechanisms, aiming for long-term scarcity and sustainability. The system is governed by network participants, known as Computors, who have a role in adjusting key economic parameters.

Issuance Mechanism and Supply Cap

Qubic's token issuance mechanism is based on continuous weekly emissions, which are balanced by a strategic burning mechanism.

• Emission Rate: Qubic currently emits 1 trillion QUBIC per week.
• Supply Cap Reduction: The Qubic team implemented a significant reduction in the maximum supply, cutting it by 80% from the initial hard cap of 1,000 trillion QUBIC to 200 trillion QUBIC. This strategic move is intended to align the token supply with long-term goals of scarcity and value preservation.
• Circulating Supply: As of a recent update, the circulating supply is approximately 120 trillion QUBIC, meaning more than half of the new total supply is already in circulation.
• Emission Control: The new emission model includes a 15% reduction in emissions alongside the introduction of yearly halvings, customized specifically for Qubic. A "Supply Watcher" feature allows the emission smart contract to account for burns in real-time to maintain network stability and supply balance.

Allocation Mechanism

While a detailed, percentage-based breakdown of the initial token allocation (e.g., for team, investors, or foundation) was not available, the tokenomics structure includes a specific allocation mechanism for ecosystem development and rewards:

• Computor Controlled Fund (CCF): A proposal was made to allocate 8% of weekly QUBIC emissions to the CCF. This fund acts as a community-driven treasury to support the growth and development of the Qubic ecosystem.
  • Governance: Funding requests from the CCF are managed through a smart contract, where Computors (nodes/miners) vote on the allocation of funds.
  • Flexibility: Computors have the ability to adjust the 8% weekly emission allocation at any time to ensure sustainable funding without overwhelming the supply.
  • Usage Examples: Funds from the CCF can be used for various purposes, including airdrops, core development team salaries, token listings, and marketing activities.

Usage and Incentive Mechanism

The QUBIC token functions primarily as a utility coin within the ecosystem, driving network activity and incentivizing participation through a combination of rewards and deflationary burns.

Core Utility and Burning Mechanisms

The core economic model relies on burning tokens to create deflationary pressure:

1. Smart Contract Execution: While QUBIC transfers are feeless, the execution of smart contracts burns QUBIC. Developers can also design their contracts to incorporate additional token burn mechanisms.
2. Smart Contract IPOs: Every smart contract launched on Qubic is done via an Initial Public Offering (IPO) model, where the share costs are burned, reducing the circulating supply.
3. Oracles and AI: The use of Qubic’s Oracles to connect real-world data to smart contracts, and the future use of the network's AI (Aigarth), will also consume and burn QUBIC.
4. QEarn Penalties: A portion of unearned rewards from early withdrawals in the QEarn staking program is burned, further reducing the overall supply.

Incentives for Network Participants

• Computor Rewards: Computors (validators) execute tasks, run smart contracts, and participate in quorum-based decision-making. They receive a portion of the newly minted QUBIC each epoch for their overall network participation. A new Computor Reward System is planned to increase incentives for running Qubic on the best hardware.
• Passive Income for Shareholders: Smart contracts launched via the IPO model, such as the RANDOM contract, allow shareholders to earn passive QUBIC income. A portion of the QUBIC burned with each use of the smart contract is distributed as passive income to its shareholders.
• External Mining Incentives: Qubic has demonstrated an aggressive incentive strategy by offering higher rewards in QUBIC tokens to miners on other Proof-of-Work networks (e.g., Monero), effectively attracting external hashrate to its ecosystem.

Locking Mechanism and Unlocking Time

Qubic utilizes a staking mechanism called QEarn to encourage long-term holding and reduce the circulating supply.

• Mechanism: QEarn allows users to lock QUBIC coins for a chosen duration to earn attractive yields. The longer the lock commitment, the higher the potential Annual Percentage Yield (APY), with maximum rewards reserved for the full 52-week period.
• Reward Source: Each week, a percentage of the weekly emissions (e.g., 10% or 100 billion QUBIC) is allocated to a staking rewards pool, which is then distributed among participants upon unlocking.
• Early Withdrawal: Users can unlock their coins at any time. However, withdrawing before the end of the staking commitment incurs withdrawal penalties. These penalties are redistributed among the remaining staked coin holders, providing an additional incentive for long-term commitment.
• Deflationary Effect: When an early unlock occurs, the unearned rewards are split: a portion is returned to the unlocking user, a portion is burned (reducing supply), and the remainder is redistributed to other participants.
• Locking Details: Users can lock amounts ranging from 10 million QUBIC to 1 trillion QUBIC via the Qubic web wallet.

Information regarding a detailed, scheduled token unlock timeline for specific allocations (such as team, investors, or foundation) was not available. The primary locking mechanism detailed is the community-driven QEarn staking program, which uses a 52-week commitment period.