💻Tokenomics & Quantitative Approach
Here's the initial distribution of $QE token :
LP Initial supply: 625,000 $QE
Initial Circulating supply: 8,750,000 $QE
Presale supply: 7,500,000 $QE (15%)
Use of funds :
⅓ LP
⅓ Team
⅓ Treasury
To manage the treasury efficiently, we use a quantitative approach to find the best balance between supply, yield, reserves, bonds, and inflation. We identify 3 phases in token, to strike a balance between building up cash and controlling inflation.
Phase 1:
Phase 1:Goals:
Building up cash, aggressive discounts, and rewards
Create a substantial cash position so that we can implement our future actions.
Distribute an attractive return to users and encourage them to use the model (3.3).
Begin our strategic actions to support the memecoins culture.
Details:
Supply: 50,000,000 $QE to be minted
Distribution of initial supply through bonds and staking.
Accumulation of LP $COQ-$AVAX; $KIMBO-$AVAX; $QE-$AVAX to initiate strategic positioning.
Build up sufficient reserves to secure fixed interest payments, regardless of market conditions, and then reinvest the excess spread in the ecosystem or R&D projects.
Management: The vast majority of cash is invested in LPs to generate a regular return.
$USDC-$AVAX
$COQ-$AVAX
$KIMBO-$AVAX
Redistribution:
Community Support: when reserves are sufficient, we start to set aside funds to finance community support projects: Liquidity and grants.
Treasury returns.
Phase 2:
Phase 2:Slowing down rewards, increase in cash and reserves, distribution of LP income + decreasing revisable spread, discount revised downwards.
Objectives:
Reduce new bond issuance to stabilize inflation.
Add treasury yields to the staking part and reduce the rewards in $QE granted.
Maintain our operations to support the memecoins culture.
Prepare for phase 3.
Details:
Supply: From 50,000,000 to 100,000,000 $QE to be minted
Daily $QE mints will be reduced for both bonds and staking.
This reduction will stabilize token inflation.
Management:
Staking will be supported by cash returns from the various LPs, as well as strategic community actions: taking positions in initiatives relating to the memecoins culture to support and generate returns.
Redistribution
Community Support: Liquidity, Grants.
Treasury returns.
Phase 3:
Phase 3:Cruising speed, no new issues, redistribution of LP rewards
Objectives:
Structure a fixed-rate, low-risk bond: demonstrate that the ecosystem can offer opportunities just as serious as the rest of the industry if not TradFi.
Self-finance an ambitious R&D program, for instance, using AI and ML to optimize liquidity pools selection.
Finance support for the ecosystem, by generating excess returns on the structure.
Details:
Supply: staying between 50,000,000 to 100,000,000 tokens through active management.
Senior tranche: 88%, fixed interest of 15% - No maturity envisaged
Junior tranche: 12%, fixed interest of 90% - No maturity envisaged
In the event of a liquidity shortage, the Junior Tranche is impacted first.
A fixed-rate bond with a higher yield than stablecoins but lower risk.
The aim is to build up sufficient reserves to secure fixed interest payments, regardless of market conditions, and then reinvest the excess spread in the ecosystem or R&D projects.
Management:
The cash position continues to be replenished each period, as do expenses and the Market Ops pool.
Revenues therefore increase over time, and so does the Excess Spread.
Redistribution:
Internal Project: once sufficient reserves have been built up, we will start to fund projects to develop the protocol (AI, ML, Deep Learning, etc.).
Community Support: Increase our rate of funding for community projects and initiatives: Liquidity, Grants, Education, Events, etc.
Total Supply
Total Reserves
Using this quantitative model, it is possible to establish a substantial reserve of $QE mint per bond. The "Total Reserves" graph displays the reserves in $QE per epoch, which incorporates both the "Market Ops" reserves and the "Excess Spread" reserves.
By the middle or end of Phase 2, the treasury will have grown significantly, generating enough revenue to cover expenses and more. This growth will reduce the protocol's reliance on reserves, enabling their distribution to support the community without affecting the protocol's profitability. Moreover, increasing the total reserves would make the protocol more resilient during a bear market phase.
During the bootstrapping phase, both treasury and reserves enable rapid growth, while in the second and third phases, the protocol gets consistent and gradual long-term growth in the Market Ops. As time goes on, the importance of Excess Spread increases, which allows the protocol to reward its holders, ensuring sustainability while remaining profitable.
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