Upgrading QI’s Tokenomics

 

QiDao Migration: Upgrading QI’s Tokenomics

Advanced voting escrowed QI, or aveQI for short, introduces QI-ETH LP locking on Balancer’s Ethereum deployment. Users that lock QI-ETH will be able to boost their voting power over QiDao as well as their share of weekly revenue distributions from the DAO. A user’s voting power and distribution share will be a function of how much QI-ETH they lock and for how long. A minimum of 28 days is needed for new locks, with a maximum of 4 years. QI-ETH LP tokens from Balancer can be locked via the Mai Finance UI. Once locked, tokens cannot be removed until the unlock date is reached. Locking can also be done directly via the protocol’s aveQI smart contract. Using QI-ETH instead of QI for QiDao’s new locking mechanism will allow the DAO to maintain liquidity for QI without the need for inflationary rewards. Only tokens earned through the operations at QiDao will be used to incentivize aveQI.QiDao is the most widely used CDP stablecoin project in DeFi, with over 10,000 active minters on several chains. Revenue from operations on these chains is constantly collected by revenue contracts.Revenue is consolidated weekly from all chains on Optimism. If token balances are too low to be transferred, they are held in the chain where they were earned until token balances are sufficient. Token transfer costs cannot exceed 10% of the value being transferred.Every two weeks, 50% of accumulated revenue from all chains is used to incentivized QI-ETH’s gauge on Balancer. This is done via voting markets. veBAL holders that vote for QI-ETH will receive token rewards from QiDao’s revenue. After Balancer’s biweekly gauge ends, QI-ETH’s votes will result in BAL rewards being allotted to QI-ETH. Only users that lock QI-ETH in aveQI will be eligible for BAL rewards as it is this locking mechanism that was approved by Balancer governance for distributions. If the ROI on voting markets is less than 1x, meaning voting incentives exceed expected BAL incentives, then revenue is distributed directly by QiDao to aveQI lockers.

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