KEY TAKEAWAYS
- Qubic introduces a new emission model for Project X, reducing the maximum supply by 80% to enhance sustainability.
- The model features a strategic burning mechanism to increase QUBIC scarcity by removing coins from circulation.
- Scheduled halvings and a dynamic Supply Watcher adjust burn rates, ensuring network stability and supply balance.
- The reduction in maximum supply aligns with Qubic’s goals of scarcity and value preservation, potentially attracting new investors.
Qubic has introduced a new emission model for Project X, marking a significant shift in its ecosystem. The model, which reduces the maximum supply of QUBIC, aims to enhance long-term sustainability. A key feature of this model is its strategic burning mechanism, designed to gradually remove a substantial portion of coins from circulation, thereby increasing the scarcity of QUBIC.
In addition to the burning mechanism, the model incorporates scheduled halvings and a Supply Watcher feature, setting the network up for potential growth. The Supply Watcher dynamically adjusts burn rates based on real-time data, ensuring network stability and supply balance. As a result, emission and burn amounts may fluctuate.
The 200 Trillion Max Supply Cap: A Strategic Reduction
The Qubic team has implemented a significant reduction in the maximum supply of QUBIC, cutting it from 1,000 trillion to 200 trillion—a reduction of 80%. This strategic move aligns the token supply with the network’s long-term goals of scarcity and value preservation. Currently, the circulating supply is approximately 120 trillion QUBIC, meaning more than half of the new total supply is already in circulation.
This carefully managed supply aims to balance the network’s growth with sustainable tokenomics. Previously, with a higher maximum supply, Qubic’s Fully Diluted Valuation (FDV) was roughly $1.7 billion. With the 80% reduction, the FDV has decreased to approximately $340 million, potentially making Qubic more accessible and appealing to new investors.
Emissions and Burnings: A Balanced Approach
A key aspect of Qubic’s new emission model is the use of a controlled burn mechanism. The network continues to emit a set amount of QUBIC each week—1 trillion—without reduction. Instead, a percentage of these weekly emissions is burned, permanently removing these coins from circulation. In the first year, 15% of emissions are burned each epoch, starting a cycle of increasing, controlled scarcity.
During epoch 124, the first supply burn was executed, with nearly 149 billion QUBIC permanently removed from circulation. This demonstrates the practical application of the burn mechanism and sets the stage for future burns that will further reduce the supply. The Supply Watcher may adjust burn rates to maintain network stability, so all emission and burn figures are flexible estimates.
Halvings: Controlled Supply Reduction
To further manage supply, Qubic will introduce halvings every 52 epochs, requiring approval by Quorum to ensure community consensus. While total emissions remain constant at 1 trillion per week, the proportion of QUBIC that is burned increases each year. This means that as time progresses, more QUBIC is permanently removed from circulation, reducing the effective supply.
In epoch 175, the commencement of the yearly halvings, the burn increases to approximately 28.75 trillion QUBIC, reducing the effective emissions to approximately 21.35 trillion. This process continues, effectively halving the net emissions and progressively reducing the supply, leading to greater scarcity.
The Supply Watcher ensures flexibility by adjusting burn rates, so halving and emission figures are intended as approximations rather than guarantees. This approach aims to create a sustainable ecosystem by reducing the total supply while carefully managing emissions, burns, and network stability.
For more details, visit the official announcement here.
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