The 10th Digest: Understanding Qnode Protocol and How Anyone can Mint (Increase) the Supply of Qnode.Defi (QND)

Written by JAVAKID and JOSH ERHIGA

The tenth digest is written to enlighten the community on how they can increase the supply of the Qnode.Defi (QND) token and also determine the value of the assets.

Qnode Protocol has strategically built her side-chain for a second governance layer to the Qnode blockchain using smart contract. This re-emphasizes that QnodeCoin (QNC) is parent chain (i.e native blockchain), while Qnode.Defi (QND) is side-chain token deployed via smart contract on Binance Smart Chain Network.

From the explorer, the token holder’s button will reveal the holders of Qnode.Defi (QND) and during the redeployment of the Qnode.Defi contract, only 20% of supply (1,600,000 QND) was minted. This was also because the sales could not cap or sold out. For this reason the remaining token supplies are locked and/or cannot be minted until algorithmic bridge is deployed.

This gives power to the community who will mint new supplies of QND via the bridge.

WHAT IS SIDE-CHAIN AND PARENT-CHAIN ?

In other words, you can move assets to the side-chain and then back to the parent chain. For example, a private Ethereum-based network that had a linkage allowing ether to be securely moved from the public Ethereum main chain onto it and back would be considered to be a side-chain of the public network. The relationship between QnodeCoin (as a coin) and Qnode.Defi (as a token) is algorithmic, where 1 Qnode.Defi (QND) is equal to 3.2 QnodeCoin (QNC) forever.

HOW DOES THIS WORK FOR QNC & QND?

WHAT IS THE BACKING BLOCKCHAIN?

WHO SHARES THE BLOCK REWARDS ON QNC?

The miners uses X11-PoW hardware's (ASICS & GPUs) to forge the blocks, but only get 35% of all blocks rewards (i.e 5,040 QNC) — which is distributed democratically on the network to all hardware miners. While the active master-nodes who provides Proof of Service operations, security and democratic governance shares 55% of all blocks rewards (i.e 7,920 QNC) — which is distributed democratically to all masternodes on the network. This leaves out a 10% treasure funds (i.e 1,440 QNC) that is locked on the network. Only a governance voting proposal that passes 50% community votes gives access to this treasury. Qnode blockchain was indeed built to last.

DO YOU WISH YOU OWN A PERSONAL MASTERNODE ON THE QNODE NETWORK? AND HOW DOES THIS HELP YOU MINT NEW QNODE.DEFI (QND)?

HOW DOES SOMEONE RUN A MASTERNODE?

REQUIREMENT: To run a masternode, you need to have a PC (Personal Computer), 20,000 QNC is required as network collateral and a dedicated server (either on pecunia or ihostmn). Plus 1 QNC for fees. An operator needs to continuously hold this collateral to continue running a masternode and receiving transaction fees with block rewards on the network.
Click here 👉 To Depoy a Masternode (Without Coding)
Click here 👉 To, Depoy a Masternode (With Coding Guide)

BENEFITS:

HOW DOES MY QNODECOIN (QNC) GET CONVERTED TO QNODE.DEFI (QND) AND VICE VERSA?

What is State of channel:
These are the general form of payment channels, applying the same idea to any kind of state-altering operation normally performed on a blockchain. Where a lock Up state using smart contract is in place, an Off blockchain 2 ways transaction is stated and executing to a change of state back to main blockchain. Fig 1.0 explains state of channels

Fig 1.0 State of channels

Fig 2.0 below, is how the algorithmic bridge works, it allows you to move assets to the side-chain and then back to the parent chain. Un-minted Qnode.Defi (QND) tokens are locked up in the QND smart contract. When a user provides proof of transfer interaction on the main-chain, its triggers a to and fro transactions for iteration and mints new QND tokens to the side-chain. The same works for the reverse transaction with locked funds on the gateway for reverse spending and its confirmed in blocks on both blockchains with validations, preventing a double spend.

Fig 2.0 algorithmic Interaction

HOW TO DETERMINE THE VALUE OF MY ASSETS? EITHER QNC OR QND?

Below is the governance computation, the supply of Qnode.Defi ($QND) is ALGORITHMIC and NOT DEFLATIONARY. Therefore, QND cannot be burnt.

Take a look at the algorithmic computation here:
#1. IDr (Inter-chain Defi Ratio)
is the algorithmic backing ratio of Qnode.Defi (QND) to QnodeCoin (QNC). That is, QNC is not being wrapped like in wBTC, wLTC etc. Wrapped coins are always 1:1 and not algorithmic. But the reverse is the case with QnodeCoin and Qnode.Defi.
Algorithmic Formulae:

Let IDr Formulae:
IDr = (0.000013% x QNC Fsupply) — Acn.
where QNC Final-Supply = 24,624,000 QNC (in 65 years)
let 0.000013% = Pam (Percent of algorithmic multiple).
let Acn (Allowable Constant of Negligible Decimal) = 0.000112
mathematically,
1 QND = 3.2 QNC (forever via the bridge)

Therefore, there shall be no burn of QND — the contract is not deflationary. The backing blockchain will have to catch-up in some years with QND supply or the reverse is the case. And if a burn happens to QND, there will be a short supply in circulation to march the algorithmic computation, since 1 QND equals 3.2 QNC. This is why the Protocol Contract cannot execute a burn tx.

Algorithmic-ly, the Total Defi Supply (TDs) of QND is calculated using the following derived formulae:

#2. Total Defi Supply (TDs) — is the maximum or final supply that is mint-able in the smart contract.

Let TDs formulae:
TDs = QNC Supply/IDr
Where QNC Supply = 24,624,000 QNC (in 65 years)
Where IDr (Inter-chain Defi Ratio) in QNC = 3.2 QNC (calculated above in #1.)
therefore,
TDs = 7,695,000 QND

Having understood the governance computation, the ratio of the supplies have been determined in algorithmic ratio of 1 QND to 3.2 QNC. Therefore, the following will likely happen:

THE ASSUMPTION

lastly, the team is currently developing the algorithmic bridge and soon will be public. Its a count down here on 👉 this page

Article Credits:

We want to thank JAVAKID for writing for Us again. over 40 percent content was written by him. And the LeadDev has edited and compiled the remaining content.

From the Team:

The Protocol is an evolving tech development comprising Qnode Blockchain & its DeFi Layer on Binance Smart Chain for Incentivized Nodes & Algorithmic Governance