In the world of Qubic, the utility (or coin) driving the ecosystem is not a mere currency but an 'energy' unit. These units, known as Qubic Units (QUs), serve as the fuel for executing smart contracts and accessing other services on the Qubic platform. Unlike traditional monetary units, QUs are burned when used, which is a fundamental concept in understanding the unique tokenomics of Qubic.
Qubic Units (QUs)
QUs act 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 QUs is the bedrock of transactions within the system. It's vital to note that QUs, while having a value, are not 'paid' to the system entities (Computors). Instead, they are 'burned' or permanently removed from circulation, contributing to a balance between inflation and deflation in the Qubic economy.
The Qubic network utilizes $QUBIC (an not $QU) as its official financial ticker.
Epoch and QU Generation
Each epoch in the Qubic network spans seven days and produces 1 trillion QUs. 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 QUs divided by 676 (i.e. 1.479 billion QUs). The distribution model is designed to encourage efficiency; Computors operating at suboptimal levels will witness a dip in their revenue. The remaining balance of QUs is assigned to the Arbitrator. The Arbitrator plays no role in smart contract governance, voting or QU distribution, ensuring equilibrium within the Qubic economic framework.
Regarding the overall supply, it isn't indefinite. The circulating coins are capped at 1000 trillion, excluding emission coins. A point will come in the future — no earlier than 2041 — where the burn rate will match or surpass the emission rate, causing a plateau in the circulating coins' growth. Nevertheless, miners are assured of their rewards in perpetuity. This guarantee stems from built-in economic drivers. Hypothetically, should Qubic ever approach having 999 trillion QUs in circulation, the quorum would initiate a weekly burn of 1 trillion QUs as execution fees, ensuring consistent revenue generation.
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. These QUs are burned and not given to Computors, further reinforcing the concept of QUs 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 QUs in the ecosystem.
The Arbitrator oversees the assignment of AI training tasks in Qubic but does not exert influence over smart contract execution, voting procedures, or QUs 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.
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 QUs spent during the IPO's Dutch auction will be permanently burned, ensuring a continuous reduction in the active supply of QUs over time.
While QUs or Qubic Units can be seen as the native coin, Qx shares are the first ever tokens deployed on the Qubic ecosystem.
In essence, QUs serve 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 QUs within the network design underlines the adaptive, efficient, and democratic nature of the Qubic platform.