Thread by @Arcane_Tiger

Building the ‘internet for blockchains’

#Quant Tokenomics

Presenting: Quant

$QNT

// A THREAD (PART 2)

In Part one of our series, I covered:

- TCP/IP & ARPANET
- Overledger
- the similarities between each
- ISO TC 307
- INATBA

In part two, I will cover:

Tokenomics and the importance of token velocity.

(An often overlooked and misunderstood concept in cryptocurrency)

**ODAP, CDBC’s and other alpha will be covered in part 3.**

What is token velocity?

In simple terms, token velocity measures the amount a digital asset changes hands between parties.

So in essence:

The higher a token’s velocity, the more it is being used.

Is this a ‘good’ thing?

It depends.

Have you ever wondered why daily volume for a project can be extremely high, yet never move much higher in price?

Looking at you , $XLM 😅

Since $XLM is often used as a liquidity vehicle to move $ between exchanges, banks, and users etc - it possesses a HIGH token velocity.

This doesn’t make $XLM a ‘bad’ asset.

It’s use case is as a liquidity and payment token

So higher token velocity is to be expected.

Use case, Tokenomic models, and plenty of other variables can affect its TV.

Quantifying token velocity

The formula for TV is simple:

Total transaction volume divided by market cap

Here is a way it is measured for economies

For its use case, high token velocity is important for an asset like $XLM

Though you can reduce its token velocity through:

- Buybacks (revenue burns)
- Staking mechanisms
- Gamification to encourage holding
- Profit sharing mechanisms

These are a few of the options to do so.

HOWEVER this does NOT assert that a low token velocity ‘always’ means a higher price, though lower token velocity ‘usually’ correlates to a more scarce asset

Which in turn can lead to a higher price.

*Finding an equilibrium to sustain a healthy ecosystem should be considered*

$QNT Tokenomics:

High scarcity & ‘low’ token velocity

$QNT total supply: 14 million

$QNT provides utility by:

- Purchasing enterprise licenses (annually)
- Platform tx’s
- Developer licenses
- ID & Account
- Gateways & staking
- Transaction processing

& more.

Purchasing an Enterprise License requires paying in $QNT

Price to obtain this license is fixed in Fiat.

Though the amount of $QNT will vary depending on price of the asset.

Fiat is converted into $QNT from the treasury so there isn’t a need to purchase from an exchange.

The amount of $QNT that was paid to obtain an annual enterprise license will be locked up for 12 months, reducing token velocity & increasing scarcity.

The same concept applies to purchasing a developer license

Transaction Proccessing:

$QNT tokens are used to sign, encrypt, and validate ALL transactions that occur on the network

NO transaction can occur
WITHOUT $QNT on the network

Gateways & Staking

Gateways will earn $QNT for transaction processing

If you want to provide more throughput, you can purchase more $QNT to do so

Also, the more that they stake , the more the Gateway can earn

Paid in what?

You guessed it

$QNT

Another thing that should be considered:

People like you and me HODLing #Quant for the long term.

Most of us don’t plan on giving up our Quant anytime soon

And there’s ALOT of us.

Reducing the $QNT in circulation even MORE.

Since a fiat on ramp is provided to enterprises, developers, and users

the familiarity of these 3rd parties joining a network still exists.

Making integrating your business model seamless.

In my opinion, the most important part to make the tokenomics work cannot be understated:

**The price in fiat remains fixed**

**But the amount of $QNT required varies based on the token price*

EX: .00001 $QNT can get you a license purchased, if the price of $QNT reflects that

Quant in my opinion, has created the most utility driven token in all of crypto.

It’s token velocity and scarcity doesn’t hinder the flow of the network, due to the flexibility of it’s tokenomic model.

CONCLUSION:

With a total supply less than $BTC

An ecosystem BUILT on the utility of its native token $QNT

And the mass scale of the use cases Quant is pursuing

There’s no reason why $QNT can’t become the most scarce and valuable asset in all of crypto.

🚀

Part three will cover:

- Partners
- ODAP
- CBDC’s

& more.

Thanks for reading $QNT