Qubic, a decentralized platform renowned for its innovative tokenomics, faces a pivotal moment with its proposed halving at Epoch 175, scheduled for mid-August 2025.

This blog outlines the current tokenomics landscape, details the halving proposal, and emphasizes its importance for the ecosystem’s long-term stability.

The Current Landscape: Qubic’s Tokenomics and Supply Challenges

Qubic’s tokenomics are designed to create a sustainable ecosystem. At Epoch 168, Qubic emits 1 trillion QUBIC weekly, with a 10% burn rate, resulting in an effective emission of 900 billion QUBIC per week. The circulating supply stands at approximately 150 trillion QUBIC, including Total Value Locked (TVL).

This follows Qubic’s significant reduction of its maximum supply from 1,000 trillion to 200 trillion QUBIC one year ago, an initiative termed Project X. Alongside the supply cap, several features were introduced to maintain robust tokenomics for miners and investors:

• Annual Halvings: Scheduled reductions in emissions to enhance scarcity.

• Strategic Emission Burns: Weekly burns to reduce circulating supply.

• Supply Watcher Mechanism: A dynamic tool that adjusts burn rates to prevent excessive deflation and ensure network stability.

Learn more about these features here.

Despite these measures, halvings require approval from Qubic’s Quorum, adding a layer of flexibility depending on the situation at the time of the halving.

Today, concerns have emerged about the rapid pace of emissions. Projections suggest that, without halving, the maximum supply of 200 trillion QUBIC could be reached by Epoch 435 - four years ahead of schedule. This accelerated emission rate threatens the ecosystem’s sustainability, prompting urgent discussions about the need for halving to control supply and support long-term value.

The Epoch 175 Halving Proposal: A Necessary Adjustment

The proposed halving at Epoch 175, pending Quorum approval, seeks to drastically reduce effective emissions to promote QUBIC scarcity. The proposal involves increasing the burn rate to 57.5% (575 billion QUBIC burned weekly), lowering effective emissions to 425 billion QUBIC per week. This represents a significant reduction from the current 900 billion QUBIC weekly net emission.

By Epoch 175, the halving is expected to reduce annual effective emissions to approximately 21.25 trillion QUBIC, with the maximum supply reaching around 175.7 trillion QUBIC by the next halving cycle (approximately Aug. 2026.) This is part of a long-term roadmap, with subsequent halvings (e.g., Epoch 227 in 2026 increasing burn rates to 78.75%) further reducing emissions and total supply. The Supply Watcher will continue to adjust burn rates dynamically, ensuring flexibility, though all figures remain approximations.

Why the Halving is Critical

The halving was envisioned as a core component of Project X’s maximum supply reduction, packaged with strategic burns and the Supply Watcher. While Quorum approval was designated to ensure consensus at the time of halving, the current emission trajectory underscores the urgency of implementing the halving. Failing to pass this proposal could have following consequences:

• Depletion of Miner Rewards: Rapid emissions could exhaust miner rewards prematurely, undermining the network’s operational backbone.

• Price Suppression and Volatility: The vote against halving may prompt the coin price shock with continued suppression of the price in the future.

• Insufficient Time for Key Developments: The accelerated supply growth could limit resources and time needed to develop critical projects like AIGarth, a cornerstone of Qubic’s future.

These risks highlight the halving’s role in preserving the ecosystem’s health.

The Road Ahead

The Epoch 175 halving proposal is a defining moment for Qubic, balancing immediate supply control with long-term ecosystem stability. The Quorum’s decision will shape the project’s future, requiring the community to present compelling arguments to secure approval. Halving, as part of Project X’s vision, is essential to align miner, computor, investor, and Qearn user interests while safeguarding Qubic’s sustainability.

Join the conversation on our Discord. Whether you’re a miner, investor, or holder, your voice matters in this ecosystem-wide decision.

Note: All figures are approximations, subject to Supply Watcher adjustments, Arbitrator fees, and Quorum approval. Furthermore, Qearn burns are not included into the calculations.