Tokenomics
The Quai token acts as the backbone of Quai Network, ensuring network security, spam resistance, and simple exchange of value in a decentralized system.
Quai Network has a hard-capped token supply in order to achieve decreasing inflation in the short term and deflation in the long term.
The Quai tokenomics are under ongoing development. All information below is not final, and is subject to change before Quai Network’s Mainnet launch.

Adoption Incentives

25% of the tokens are allocated to adoption incentives that look to provide critical integrations for Quai Network. This may come in the form of partnerships with Fortune 500 companies, governments, and underserved societies.

Mining

20% of Quai Network’s total supply will be reserved as block rewards for miners. Similar to other Proof-of-Work algorithms, Quai Network incentivises beneficent allocation of hashpower by rewarding miners who confirm a legitimate block that gets propagated to the entire network.
Due to the different levels of difficulty in mining Quai Network’s Prime, Region, and Zone chains, block rewards vary depending on which level of the hierarchy the miner has successfully mined the block in.

Foundation

15% of the tokens are allocated to the Foundation. These tokens will be used for several ecosystem-building endeavors, including further marketing, business development, brand awareness, and protocol support. These tokens have a 10-year vesting period and associated burn if unallocated.

Strategic Partners

15% of the tokens are allocated to strategic partners who are aligned with the goals and values of Quai Network.

Infrastructure Partners

5.5% of the tokens are allocated to infrastructure partners who are dedicated to helping Quai Network become the most globally accessible blockchain platform to date. These services include node hosting, mining pool operations, RPC accessible, and more. It is our goal to utilize these partners to promote ongoing decentralization efforts for the long term.

Founders

5% of the supply has been dedicated to the founding members of Dominant Strategies for their continued efforts in developing the Quai Network protocol and ecosystem.

Bounties

5% of the token supply will be awarded to individuals who create contributions in the form of written code, content, media, and other associated forms of ecosystem promotion.

Testnet Incentives

0.5% of total token supply has been allocated to compensate individuals who allocated time and hashpower to Quai Network’s Testnets. The distributed group of dedicated Testnet participants has been, and continues to be an integral part of Quai’s development process. Individuals will be awarded tokens accordingly, based on the reward structure outlined before each Testnet as well as participation in Quai’s Mainnet Rewards program, giveaways, and other events prior to Mainnet launch.

Contributors

4% of the token supply will be awarded to core contributors to the Quai Network ecosystem. These tokens are allocated to individuals and groups that are developing core tooling and infrastructure on Quai Network.

Community

3% of the supply has been reserved for community allocation. The specifics regarding this allocation have yet to be released.

Exchange Liquidity

Quai Network will allocate 2% of total token supply to provide early liquidity to exchanges. This liquidity will be used to accommodate the initial influx of adopters upon Mannet launch, before there can be sufficient user-provided liquidity.