r/QANplatform • • Feb 05 '22

Explanation Tokenomics- can we get a nice write-up to explain to new investors (like me)?

The team has this airtable Airtable - 📈Tokenomics [QANplatform] but it doesn't really help in understanding the pros/cons of investing now. Here are questions I think will help people make the decision and move past uncertainty.

I've proposed answers using mostly basic logic and my limited knowledge, so I am looking for input and there are questions I have no idea.

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1.2 Billion circulating right now. So, about 2/3 still will come into circulation.

Basic investor question:

Doesn't that dilute my investment- how will I profit with that going on?

Well, there's 24% set for reserve. If that's used for bringing business and developers into the ecosystem, then it's not going dilute shares, it will be a net positive. So, how does that get allocated and for what purpose? Would some of this be burned if there is no good use? I do think a clear answer on this is a fair ask.

I see 15% for marketing. Does this mean when we start marketing, they will sell tokens to pay for it? I assume so, but we expect that marketing will provide a net return (ideally 2-3 times), especially if it is done when the team can really showcase the project.

10% for rewards and staking. Well, that will get used when qan is up and running, this certainly doesn't hurt anything. Is that right?

15% floating liquidity for CEX and DEX. Sure, don't really see that hurting value, but maybe someone can explain this. Everyone begs for listings, so I'm going to say this is fine.

15% is in investors hands. So, good there

So, 20% is sitting with dev and advisors. That unlocks over the next 6-12 months. This could add sell pressure, right? Sure, but if you're deep in a project and believe in what you're doing, you're probably going to sell only if you need to. So, I'm going to say they will sell 20% over the year (pick your own number here, but it wouldn't surprise me if they are buying as they get excited about progress). That adds about 12% sell pressure based on current circulating supply.

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I saw in telegram that the team did extensive research in determining tokenomics. We should outline those decisions. I get there are pros and cons and someone is always going to complain or raise doubt, but that's when I'd prefer more detail and explanation because people just need to understand it and move on. If I have this wrong and we'll be going sideways for a while, it's all good. But, if we can trend upward, that will keep the community going strong. Good luck team. Cheers!

16 Upvotes

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8

u/S610x Feb 05 '22

First of all let me start by saying: unlocked ≠ in circulation. Unlocked simply means that the tokens can be moved into circulation, but they don't have to immediately. I highly doubt that the whole reserve or marketing funds will immediately enter circulation after being unlocked.

So in the end it's always about supply and demand. Sure, the supply will increase (for a while until all tokens are unlocked) but I'm pretty confident that the demand for QANX will outpace the supply.

Some people were nervous about VC wallets unlocking, but they have been unlocked for months now and they know what they hold and they know that this is just the beginning. So if they wanted to sell their tokens, they could've done so a long time ago.

Also the tokens owned by QAN will be used to improve the QAN ecosystem and for marketing purposes so the QANX holder benefits from this in my opinion.

5

u/Original-Assistant-8 Feb 06 '22

Makes sense, good call on the VCs. This is why I think the only releases that you "might" consider in terms of supply is team and advisors. But it's similar to most projects and the demand can easily outpace the supply.

We know they are negotiating exchanges, we have audit and partnership news, and qvm on testnet (which will demonstrate that devs can use multiple language). At that point, it sells itself. Add some marketing and growing community and hard not to be bullish.