Qubic Tokenomics
The utility (or coin) driving the Qubic ecosystem is not a mere currency but an 'energy' unit. These units, known as $QUBIC, serve as the fuel for executing smart contracts and accessing other services on the Qubic platform. Unlike traditional monetary units, $QUBIC is burned when used, which is a fundamental concept in understanding the unique tokenomics of Qubic.
$QUBIC
$QUBIC acts as a measurement of computational 'energy' spent on the Qubic platform. Whether it's running smart contracts or seeking data from oracles, the consumption of $QUBIC is the bedrock of transactions within the system. It's vital to note that $QUBIC, while having a value, is not 'paid' to the system entities (Computors). Instead, it is 'burned' or permanently removed from circulation, contributing to a balance between inflation and deflation in the Qubic economy.
The Qubic network utilizes $QUBIC (and not $QU) as its official financial ticker.
Epoch and QU Generation
Each epoch in the Qubic network spans seven days and produces 1 trillion $QUBIC. These units are predominantly allocated to Computors, the backbone nodes of the network. In scenarios of maximum efficiency, a Computor can potentially receive a revenue equivalent to 1 trillion $QUBIC divided by 676 (i.e. 1.479 billion $QUBIC). The distribution model is designed to encourage efficiency; Computors operating at suboptimal levels will witness a dip in their revenue. The remaining balance of $QUBIC is assigned to the Arbitrator. The Arbitrator plays no role in smart contract governance, voting or $QUBIC distribution, ensuring equilibrium within the Qubic economic framework.
Regarding the overall supply, it isn't indefinite. The circulating coins are capped at 200 trillion, as per a recent community decision to reduce the max supply from the original 1000 trillion. This reduction, which was voted and approved by the community (see the proposal here), aims to boost the Qubic ecosystem and attract new entrepreneurs. Along with this reduction, an emission schedule has been implemented which will burn Qubic. For the first year, the reduction will be a maximum of 15% of emissions. Afterwards, Qubic will have a halving of emissions every year.
Transfers and Fees
Qubic stands apart from traditional systems with its approach to transfers and fees. Transfers within the Qubic network are feeless, contributing to the efficiency and user-friendly nature of the platform. Furthermore, 'fees' associated with executing smart contracts are not fees in the traditional sense. This $QUBIC is burned and not given to Computors, further reinforcing the concept of $QUBIC as 'energy' rather than money.
The Role of Computors
Computors in the Qubic system play an instrumental role in maintaining its economic balance. They perform tasks assigned by the Arbitrator and vote by Quorum to determine the size of the commission for executing smart contracts. Interestingly, this commission does not become the Computors' income. Instead, it is burned, adjusting the inflation or deflation of $QUBIC in the ecosystem.
The Arbitrator
The Arbitrator oversees the assignment of AI training tasks in Qubic but does not exert influence over smart contract execution, voting procedures, or $QUBIC distribution. This segregation of roles aids in maintaining the decentralized nature of the platform. However, the Arbitrator also plays a crucial role in cases of disputes or challenges within the network, providing a balanced and fair resolution. As such, the Arbitrator contributes to maintaining the overall stability and order of the Qubic ecosystem.
Smart Contracts
Execution of smart contracts on Qubic typically requires a commission, unlike many other crypto platforms. However, this commission does not go into the pockets of the Computors, but rather it is burned. The size of the commission is determined through a quorum vote by the Computors, effectively creating a mechanism for automatic adjustment of inflation or deflation.
Burn Mechanism during IPO
Every new smart contract on Qubic requires an Initial Public Offering (IPO). This is not just a fundraising exercise but also a mechanism to control the QU supply. All $QUBIC spent during the IPO's Dutch auction will be permanently burned, ensuring a continuous reduction in the active supply of $QUBIC over time.
While $QUBIC can be seen as the native coin, Qx shares are the first ever tokens deployed on the Qubic ecosystem.
In essence, $QUBIC serves as the lifeblood of the Qubic network, driving its operations, incentivizing efficiency, and maintaining a balance in the tokenomics through a system of rewards and burns. The unique role of $QUBIC within the network design underlines the adaptive, efficient, and democratic nature of the Qubic platform.