Qredo Token Economics Update
This bit comes from the official Qredo
We are always listening to feedback and concerns from all parties.
Our tokenomics model is complex—perhaps not surprisingly—with some important features overlooked. This includes new hosted mining and utility mining rewards for future releases.
However, we've also made some important changes to address FUD:
We are flattening the token release curve - nearly doubling the existing vesting period for all team and investor vesting.
We have introduced two new deflationary features into our tokenomics model: the ability to pay fees in QRDO (much of which will be burned), and a new insurance fund that will initially Cancel the circulation of 100 million QRDO in the currency pool.
Token Burn: We will burn 40m QRDO immediately and then another 100m during 2022. This will significantly reduce the total existing QRDO supply by 140 million by 2022 (14% of the initial total supply).
New validator plan: validators will be required to hold validator NFT, and the validator pledge amount will be sent to the burn contract.
It has been six months since QRDO was first listed on the exchange. We've been on a roll ever since!
QRDO has traded over $5 billion in volume and is listed on more than 25 exchanges. Qredo Network is also thriving, acquiring over $7 billion in assets andTop-tier partnerships with companies like Metamask Institutional。
As you know, Qredo is a fully decentralized project whose ultimate goal is to be managed and operated by a DAO. All QRDO holders will have a say in the direction and path of Qredo.
Before we get there, we feel it is our duty to listen carefully to the feedback and opinions we receive from token holders and community members that we value very much.
secondary title
The Value of Qredo’s Token Economics (Maybe You’re Not Paying Attention!)
Clearly, we could have done a better job conveying the benefits of Qredo's user-centric tokenomics model and distribution of reward tokens over the next 50 years.
Here are three important aspects that I would like to highlight:
Qredo's token economics model incentivizes all participants on the network - not just validators, as most other blockchains do. By rewarding usage in this way, we can grow faster and create a growing demand for QRDO that far exceeds inflation. Through this, we believe that the Qredo network can become one of the fastest growing blockchains in the market.
How will this work in practice? Qredo already offers staking rewards, but in the future, there will be some really cool hosting and utility mining rewards as well. These reward tokens (the upcoming 2 billion QRDO tokens) will be used to reward those who hold assets in Qredo wallets ("custodial mining") or build assets on the Qredo network ("utility mining") all users. Those who drive usage of the Qredo network will also be rewarded more (which incurs transaction fees, further driving QRDO demand).
Our token economics model also aims to incentivize large TradFi banks and asset managers to build on Qredo, making it their default crypto infrastructure. Exchanges will also be rewarded for integrating our Connected Wallet, allowing their users to trade directly on centralized exchanges - but with full self-custodial control over their assets. This future growth will skyrocket the fees incurred by our TVL and Qredo network.
Are you starting to see the value in the Qredo tokenomics? We have built a model that will drive future long-term network growth - for the benefit of all QRDO holders. The best is yet to come!
Solve FUD
We know our community has always had questions about token economics. I'm happy to announce three new initiatives to address this problem in a meaningful way:
1. Flatten the curve
To reflect our long-term vision, we are "flattening the curve" by nearly doubling the existing vesting period for all team and investor vesting. This is endorsed by the largest token holders, all of whom have been involved for a long time.
The distribution curve is now very flat, with a significantly smaller attribution event in July 2022. Our goal is to remove all unnecessary FUD and build confidence in our ability to build a healthy and sustainable circular supply model.
2. Let's deflate
We introduce two new deflationary features into our tokenomics model:
By introducing the ability to pay for fees using QRDO, we are significantly increasing the utility of the Qredo token. The motivation for paying with QRDO is that it will unlock the lowest possible fees. We estimate this will significantly boost QRDO demand. Also, most of the QRDO used to pay fees will be burned (we will share more details in the future).
We've also built an innovative captive insurance model! Think of it as Qredo's own SAFU fund. We plan to withdraw 100 million QRDO from the reward token pool and lock them in the Qredo Insurance Fund. This QRDO will only be issued in the event of a major insurance event and our users need protection.
Finally, one more thing...
3. Token Burn
When we've reached the equinoxes -- spring in the northern hemisphere and autumn in the southern hemisphere -- it's a good time to start anew.
To demonstrate our commitment to building a deflationary tokenomics model, we will burn 40 million QRDO immediately, followed by an additional 100 million over the course of 2022. This will significantly reduce the existing total QRDO supply by 140 million by 2022 (14% of the initial total supply).
This deflationary burn also marks the start of our validator program. Participants in the validator program are not required to own a minimum QRDO stake. Instead, they will hold a Qredo Validator NFT representing staked and burned QRDO.
In order to be eligible to run a validator node and mint this validator NFT, the required QRDO validator stake will be sent to the burn contract.
We believe this is a strong incentive to attract suitable validators, since if a validator stops validating, they will not be able to sell their initial QRDO stake back to the market. They can only transfer or sell the NFT to the next validator.
I hope this update was helpful to you and that you are as excited as we are about our future path.
Qredo is not a one-off project. Our token economics model and its reward and incentive system are designed to drive a long-term revolution in the way digital assets are stored and managed.
Your feedback on the QRDO expansion schedule is important to the team. We are optimistic that the new deflationary measures will largely address concerns.
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Josh
Qredo Chinese page:https://www.qredo.com/zh-cn
