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 ?
Simply put, A side-chain is a separate blockchain that is attached to its parent blockchain (main-chain) using a two-way peg. The two-way peg enables interchange-ability of assets at a predetermined rate between the parent blockchain and the side-chain network. The original blockchain is usually referred to as the ‘main chain’ and all additional blockchains are referred to as ‘side-chains’.
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?
Will there be more QND in circulation soon? Yes! But that can only happen when a user (like you) implements an algorithmic blockchain transaction from the parent-chain (Qnode Blockchain) to the side-chain (Qnode.Defi) or a reverse transaction from the Side-chain to the parent chain. And because Qnode Protocol is a dual chain development, all this can be possible via the algorithmic bridge.
WHAT IS THE BACKING BLOCKCHAIN?
QnodeCoin is a standalone (3rd generation, traditional) blockchain built from the branch fork of Dash (v0.14). It uses an X11 — Proof Of Work (PoW) algorithm with a PoSe (Proof of Service) — Masternode consensus for security of the blocks and democratic governance.
Below are the specifications of Qnode blockchain:
Name (Ticker): QnodeCoin (QNC)
Algorithm: X11 (v0.14 Source)
Masternode Collateral: 20,000 QNC
Finite Supply: 24,624,000 QNC (it will require 65 years lifetime to forge)
B-Halving: Every 210,240 blocks (halving happens every 2 years)
Avg. Block Spacing and Blocks per Day: 5mins and 288 blocks/Day
Tx / MN Confirm: 2 blocks/Tx and 5 blocks/MN
Tx InstantSend: 2–3 Seconds
Initial Block Reward: 50 QNC/Block
Block Reward share: (MN — 55%, Miners — 35%, S-block — 10%).
WHO SHARES THE BLOCK REWARDS ON QNC?
With the specifications stated above, it means that the Qnode blockchain forges averagely 288 blocks daily, if all miners remains active (i.e 288 blocks equals 14,400 QNC daily). Who shares this coins? Unlike bitcoin network, where only the miners share 100% of the block rewards. On the Qnode blockchain, there are two tiers with adequate governance.
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)?
This is why we wrote this article. It is very easy to join the consensus of the Qnode Network without coding. With a $6 — $12 six months server plan on pecunia or ihostmn platforms, anyone can deploy a masternode and start earning the block rewards.
HOW DOES SOMEONE RUN A MASTERNODE?
To understand why masternodes are “incentivized,” you should know how someone runs this type of node and what they get out of it. NO CODING REQUIRED
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)
If you decide to run a masternode, your node earns 55% shares daily from the accumulated number of blocks forged. And the governance protocol ensures automated distribution of rewards to all masternodes on the network.
HOW DOES MY QNODECOIN (QNC) GET CONVERTED TO QNODE.DEFI (QND) AND VICE VERSA?
This is where the algorithmic bridge comes in. At the beginning of this article, we explained parent-chain and side-chain. The algorithmic bridge operates a state of channel interactions as you will see in the illustrations below:
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 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.
HOW TO DETERMINE THE VALUE OF MY ASSETS? EITHER QNC OR QND?
This is purely determined by you depending on the resources you have spent to acquire your wealth. But we shall again explain the algorithmic computation for your safety. For the Qnode Protocol team, technology is important to us, but most time, some community members do not place proper value on this tech and just focus on their invested bucks.
We have heard you or some people say, I put 100$ now my investment is $10 worth. We encourage you to carefully estimate the worth of your asset so that you don’t loose money.
Below is the governance computation, the supply of Qnode.Defi ($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.
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:
Let make an assumption here, Assuming the value of QND is 1 USD. The market will adjust on exchanges where QNC is listed. This is because, 1 QND = 3.2 QNC (forever). Mathematically if 1 QND is $1, then community can be sure to value their QNC to be $0.3125 (i.e. $1/3.2). The QND tokenization utilizes the Qnode blockchain and vice-versa. Hence, QNC value is linked to QND via the algorithmic governance bridge and QND utility is incentivized for On-chain options (like hardware mining, masternodes rewards, proposal issuance and voting).
lastly, the team is currently developing the algorithmic bridge and soon will be public. Its a count down here on 👉 this page
From the Team:
We appreciate all who have trusted us since the official launch of Qnode Blockchain and committed funds to the Qnode Protocol development. We have been here long enough and the delivery of the protocol goals is top priority. We shall meet every fit. And other products are being develop already.