ACADEMY
Qubic’s Economic Model: Emissions & Burns
How Does Qubic’s Economic Model Work?
The Qubic economic model is designed to reward contributors, maintain network sustainability, and prevent inflation. It ensures that QUBIC coins remain valuable over time through controlled distribution and burning mechanisms.
Think of it as the engine that powers Qubic, ensuring miners and Computors are fairly rewarded while maintaining long-term economic stability.
How Are QUBIC Coins Distributed?
The Qubic network has a total supply of 200 trillion QUBIC coins, which are released gradually through an emission schedule.
Emission Schedule: Coins Released Over Time
Early Years (Bootstrapping Phase): A high number of QUBIC coins are released to encourage early adoption. Initially, 1 trillion coins were released per week.
Later Years (Stabilization & Sustainability): Over time, fewer coins are released, and more are burned to ensure long-term scarcity.
What Is Coin Burning?
Coin burning refers to permanently removing QUBIC from circulation to reduce inflation.
Analogy: Burning Coins vs. Regular Currency
Imagine if a country regularly destroyed a portion of its paper money to prevent inflation—this would make the remaining currency more valuable over time.
Qubic does something similar through a Supply Watcher smart contract, which monitors the economy and adjusts burning rates to keep the system balanced.
What Is Coin Burning?
Coin burning refers to permanently removing QUBIC from circulation to reduce inflation.
Analogy: Burning Coins vs. Regular Currency
Imagine if a country regularly destroyed a portion of its paper money to prevent inflation—this would make the remaining currency more valuable over time.
Qubic does something similar through a Supply Watcher smart contract, which monitors the economy and adjusts burning rates to keep the system balanced.
Who Gets the Rewards?
Each week, newly emitted coins are distributed to the network’s contributors:
How Computors Are Paid
Computors are rewarded based on performance in verifying transactions.
Only the top 451 Computors receive full rewards, ensuring efficiency.
How Miners Are Paid
Miners do not receive rewards directly from the Qubic network.
Instead, Miners form agreements with Computors to get a share of their earnings in exchange for computational work.
Donations & Burns
Before Computors receive their rewards, some QUBIC coins are donated or burned for purposes like network funding and inflation control.
How Qubic’s Economy Evolves Over Time
Early Growth: High emissions encourage participation.
Sustainability: Halvings and burns gradually reduce the number of coins released.
Deflationary Impact: As burning increases, QUBIC becomes more scarce, increasing its value.