At Qredo, our aim is to move towards greater decentralization and fully engineer away trust from all aspects of the Qredo Protocol. In order to facilitate this evolution we know the tokenomics underlying Qredo Network need to be meaningfully reconfigured to create a vibrant, thriving ecosystem that delivers value sustainably to all stakeholders. We therefore propose a sweeping upgrade to our existing tokenomics with a new QRDO Tokenology that puts the QRDO token at the heart of the Qredo ecosystem.
It is our belief that this new tokenology will provide the following benefits:
- Open network participation, both with respect to validators via a new Federated proof-of-stake staking model, as well as to the protocol roadmap via community governance.
- Attractively and sustainably incentivize validators to secure the network via the Staking Support Fund and Ecosystem Fund.
- Give ecosystem participants the ability to earn rewards from staking and/or other “public goods” activities.
- Reduce market uncertainty and introduce sound money principles for the QRDO token via QRDO token allocation and burning.
We originally posted the QRDO Tokenology paper on the Governance Forum on June, 29th to solicit feedback from the community. We thank you all for giving us your thoughts and suggestions, many of which we felt would improve our original paper. To that end, we have updated the QRDO Tokenology to reflect this feedback. Below you will find a summary of the updates we have made to QRDO Tokenology in preparation for this vote.
Note: the QRDO Tokenology currently reflects the below changes:
The protocol fee will see an increment from 1 QRDO to 2 QRDO. This fee will be subject to revision on a monthly basis to ensure it aligns with the platform’s operational needs and market dynamics.
The treasury’s token allocation will be reduced from 250 million to 175 million, with the following distribution:
- 125 million tokens to be vested from September 2023.
- 25 million tokens to be vested in monthly installments, commencing from January 2024 and spread over 12 months.
- The remaining 25 million tokens to be vested in monthly installments, starting from January 2025 and spread over 24 months.
To maintain a balanced supply and demand dynamic, 235 million tokens from the unallocated supply will be burned, a significant increase from the previous 160 million.
QPIP-1 underscores our dedication to community-driven development, sustainability and value creation across the entire Qredo ecosystem. Your vote will play a pivotal role in determining the next chapter of Qredo’s evolution and we eagerly anticipate your participation in this monumental vote. Thank you!