Qubic’s Halving: Understanding Its Role in Tokenomics

On August 20, 2025, Qubic will implement its Epoch 175 halving, a significant milestone in its tokenomics framework, approved by the Quorum. This event, the largest emission reduction in Qubic’s history, will reshape the protocol’s supply dynamics.

What is the Qubic Halving?

The Qubic halving is a programmed reduction in the protocol’s weekly token emissions, designed to control the supply of QUBIC tokens and promote long-term sustainability. As part of Project X, which reduced Qubic’s maximum supply from 1,000 trillion to 200 trillion QUBIC in 2024, the halving is a key mechanism to manage inflation and enhance token scarcity. Scheduled for Epoch 175, this event will cut effective emissions by increasing the proportion of tokens burned each week.

Qubic’s tokenomics rely on a weekly emission of 1 trillion QUBIC, with a portion allocated to miners, the Computor Controlled Fund (CCF), QEarn, and burns. The halving adjusts this balance by significantly increasing the burn rate, reducing the net tokens entering circulation.

Mechanics of the Epoch 175 Halving

The Epoch 175 halving, set for August 20, 2025, introduces the following changes to Qubic’s emission model:

• Increased Burn Rate: The burn rate will rise from 15% to 55%, meaning 550 billion QUBIC out of the 1 trillion weekly emission will be permanently removed from circulation.
  
  

• Reduced Effective Emissions: Effective weekly emissions will drop from 850 billion QUBIC to 425 billion QUBIC, a reduction of approximately 50%.
  
  

• Annual Impact: Annually, effective emissions will decrease to approximately 23.4 trillion QUBIC, down from the current 46.8 trillion.
  
  

• Supply Projection: By the end of 2025, the total supply is projected to reach approximately 173 trillion QUBIC, slowing the approach to the 200 trillion maximum supply cap.

These figures are approximations, as the Supply Watcher Smart Contract dynamically adjusts burn rates based on real-time supply data to prevent excessive deflation or instability.

What Does the Halving Do?

The halving serves several critical functions within Qubic’s tokenomics framework:

1. Controls Supply Growth:

   • By burning 550 billion QUBIC weekly, the halving significantly reduces the rate at which new tokens enter circulation. This slows the growth of the circulating supply, currently at approximately 120 trillion QUBIC, including Total Value Locked (TVL).
     
     

   • Without the halving, projections indicate the 200 trillion cap could be reached by Epoch 435, four years ahead of schedule. The halving extends this timeline, ensuring sustainable supply management.
     
     

2. Promotes Token Scarcity:

   • QUBIC tokens function as a computational “energy” unit, burned during smart contract execution and other services. The halving accelerates this deflationary process by removing a larger share of emissions, enhancing the scarcity of QUBIC over time.
     
     

   • This aligns with Qubic’s long-term roadmap, where burns are projected to outpace emissions by Epoch 591, stabilizing the total supply at around 196.8 trillion QUBIC.
     
     

3. Supports Ecosystem Sustainability:

   • The halving extends the availability of miner and Computor rewards, preventing premature depletion. Miners receive rewards through Useful Proof-of-Work (UPoW), which also powers AI training for projects like Aigarth.
     
     

   • The Supply Watcher ensures that emission reductions do not disrupt incentives for miners and Computors, maintaining network operations.

     
     

Looking Ahead

The August 20, 2025, halving is a transformative step for Qubic, reinforcing its deflationary tokenomics and commitment to a sustainable ecosystem. By slashing emissions and promoting scarcity, it lays the groundwork for future halvings and innovations. As Qubic continues to evolve, the Supply Watcher will ensure flexibility, adapting burns to network conditions while supporting miners, Computors, and developers.

To learn more about Qubic’s tokenomics and the halving’s role, visit qubic.org. Stay updated on the ecosystem’s progress through Discord or Telegram.

For more information:

• Join the discussion on Discord and Telegram.

• Join the Qubic network to become a Computor, miner, or innovator.

  
  

  Note: All figures are approximations, subject to Supply Watcher adjustments, Arbitrator fees, and Quorum approval. Furthermore, QEarn burns included into the calculations.