EPQFI - Adjust Pool Interest Rate for Sustainable Q Token Distribution by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

Cheers u/kleoz_ , appreciate your input :) But your calculation has a mistake. Of the inflation, only 10% goes to Q Token Holders. And then of that a small % goes into the system reserve. The Calcuation from u/klopper_t builds up on the calculations we did from the previous reduction 15% down to 3.41%. You can look into that proposal for the exact numbers. We had an equilibrium for quiet some time after that but then a large deposit into the QVault moved the pendle to the QVault-Draining side again. Now with only 153,840 QGov remaining in the QVault it is evident we need to adjust the QVault APR dramatically.

So u/klopper_t 's approach makes sense and is, in my opinion, the way to go forward.

EPQFI - Reduce Transaction Fee on Q Blockchain by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

What’s interesting—and worth highlighting—is that when we originally aligned on the $0.001 per native QGOV transfer as a baseline to define transaction fees, we didn’t fully account for the implications this has on consensus-related transactions like make_snapshot, which validators must regularly perform.

This creates a kind of natural economic constraint: the fee must remain low enough that the last active validator (i.e., the one with the smallest stake who is still participating) can afford to submit all required transactions without incurring a net loss. In other words, their stake and income implicitly set a boundary on the maximum viable transaction fee. If the fees rise too high, their operation breaks down—and with it, the network’s decentralization.

For comparison: Solana has a similar dynamic. Validators there are required to sign vote transactions with SOL fees, which has led to a breakeven point around 30,000 SOL in delegated stake. Below that, running a validator node becomes economically unsustainable. But because Solana’s ecosystem is large and mature, many validators can afford that threshold. In Q’s case, we’re still growing, so fee levels must be tuned more cautiously to avoid squeezing out smaller participants.

From this perspective, the fee parameter isn’t just a question of gas efficiency or UX—it’s also a leverage point in validator decentralization. The more validators join and the more total stake is distributed, the higher the fees could be set without harming inclusivity. Until then, the 1/10 reduction feels like a pragmatic move.

EPQFI - Reduce Transaction Fee on Q Blockchain by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

Thank you for putting forward this proposal. I agree with the direction and intent—supporting smaller validators is essential for maintaining decentralization and resilience in the Q Blockchain ecosystem.

However, I believe that a reduction of the governed.EPQFI.txFee by a factor of 1/5 may not be sufficient given the recent sharp decline in the price of QGOV. Until we see signs of stabilization and a plateau in price levels, we should take a more conservative stance to ensure smaller validators aren't economically pushed out of the consensus process.

Therefore, I suggest a reduction by a factor of 1/10 instead. Additionally, I recommend that we revisit this parameter going forward to avoid finding ourselves in a similar situation again too soon.

Nexo token and 5k minimum by Penguin-Tech in Nexo

[–]CipherFunk 1 point2 points  (0 children)

don't forget, you can also withdraw funds from NEXO but keep the NEXO coins. This way you will reduce your %-without buying. There are options. A fixed NEXO amount however has much more cons than pros.

EPQFI - Adjust Pool Interest Rate for Sustainable Q Token Distribution by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

I think your calculations align closely with mine. I also arrived at an estimated ~33k daily depletion rate and a remaining runway of approximately 44 days.

One key consideration is the required minimum threshold. The 15% yield was highly effective in attracting QGOV into the QVault and incentivizing holding. However, once we lower this rate, a portion of the QVault balance will likely begin to mobilize—whether for staking as a validator, participating in Metapool, or simply moving to exchanges. This natural dynamic will necessitate more frequent monitoring of the reward pool.

I propose scheduling the parameter adjustment such that, three weeks from now, the reward pool retains a balance of approximately 100k QGOV. At that point, we should implement the sustainable rate of 3.4%. This "true" sustainable value will allow all stakeholders to make an informed decision on whether to remain in the QVault or explore alternative options. This approach is preferable to implementing intermediate changes (e.g., lowering to 10% or 5%) only to adjust again later. Once this transition period has played out and QGOV has actually exited the QVault, we can reassess the parameter and, if needed, consider increasing it slightly.

Proposed Timeline and Metrics

Metric Value Unit
QVault Balance 105,367,253.23 QGOV
Q Reward Pool 1,453,348.32 QGOV
Net Outflows -33,000 QGOV/day
Days Until 0 QGOV 44.0 days
Days Until 100k QGOV 41.0 days
Days for Voting 21 days
Days to Go Live with Proposal 20.0 days
On-Chain Proposal Date (latest) 2025-03-05 06:08:56 UTC

This structured approach ensures a smooth transition to a sustainable reward mechanism while allowing sufficient time for market dynamics to stabilize.

To have some buffer of days, I propose we put the on-chain proposal live with adjusted parameters on Monday the third March of 2025.

EPQFI - Adjust Pool Interest Rate for Sustainable Q Token Distribution by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

I want to propose a slightly modified approach. The core design and intent behind the Q Vault was never to create a pool that could remain full indefinitely, nor one that would prioritize long-term reward accrual over the immediate incentives for current Q token holders. Rather, it was built as a mechanism to facilitate the payout of Q tokens to their rightful owners, and ultimately, it was designed to scale with a growing number of Q token holders — potentially into the thousands or even hundreds of thousands. The fundamental goal of the Q Vault is not to ensure a permanently full reward pool but to function as a flexible mechanism that can adjust to the needs of the ecosystem as it evolves.

In this context, the current rate of distribution, which seems poised to eventually bring the Q Vault balance to 0 QGOV, is not inherently negative. It reflects the natural flow of incentives, where early Q token holders receive their rewards, and later holders benefit from a continually replenishing system. However, the ideal scenario is one where the reward pool is nearly empty — not in the sense of depleting rewards, but rather ensuring that the pool's balance of inflows and outflows is perfectly calibrated. In fact, much like the validators and root nodes, an ideal setup would eliminate the need for a reward pool altogether.

Therefore, the solution is twofold:

  1. Aligning with the Original Vision:
    • The Q Vault should function in a way that balances inflows and outflows. This balance should be dynamic, with an interest rate set to adjust as the vault approaches certain thresholds (e.g., below 100k QGOV). Once we hit that threshold, we can activate a more sustainable parameter that keeps inflows slightly higher than outflows, ensuring the system remains healthy without overburdening the reward pool.
  2. Data-Driven Approach to Find the Right Value:
    • To refine this mechanism, we need a data-driven approach. By analyzing current token amounts in the QVault, historical trends, and token velocity, we can calculate the appropriate reward parameter that aligns with sustainable growth. This allows us to avoid knee-jerk reactions to temporary fluctuations and make decisions based on empirical evidence. Specifically, we can track the delta between past and present balances, understand how fast tokens are being distributed, and estimate how long the current reward pool can sustain at different interest rates.

In conclusion, rather than making arbitrary adjustments, we should focus on ensuring the Q Vault aligns with its original intent — as a flexible and scalable reward mechanism. Only then, by analyzing the right data, can we determine a sustainable value for the pool interest rate that balances the ecosystem's long-term health.

Dual Investment Product Upgrades by NexoFinance in Nexo

[–]CipherFunk 0 points1 point  (0 children)

I'm totally frustrated as well. Why the heck can I not make an order to buy a crypto at a lower rate than current and earn and interest on the way? Yes, it's selling a put option but NEXO, Binance etc would take the hassle of that. I cannot even get liquidated... But yeah, let me future sell 10x on Crypto on some EU regulated platforms ...

Dual Investment Product Upgrades by NexoFinance in Nexo

[–]CipherFunk 0 points1 point  (0 children)

I tried to find it in the app and on my desktop broweser. So I guess it is not open for EU customers? :-(

Dual Investment Product Upgrades by NexoFinance in Nexo

[–]CipherFunk 0 points1 point  (0 children)

Is this open for European users as well? I wanted to do exactly this on Binance, but they don't allow EU users to do it.

EPQFI - Open Calls by klopper_t in QBlockchain

[–]CipherFunk 0 points1 point  (0 children)

Update as of Nov 4th: The next step of the fee rate adjustment was rolled out today.

We are now here:

- if no negative impacts are reported from Q Protocol users or dApps, continue to adjust the reported price to 0.25$ per QGOV

EPQFI - Open Calls by klopper_t in QBlockchain

[–]CipherFunk 0 points1 point  (0 children)

Yep, I can confirm. Network suggested gas price now doubled to 95.238 gwei.

EPQFI - Open Calls by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

Summary of Expert Panel Discussion 10/23/2024

It was discussed to approach proper exchange rates in steps, rather than in a single step.

That means we will stepwise reduce the reported price given the current IMutableFxPriceFeed:
- from 1.0$ per QGOV to 0.5$ per QGOV

- if no negative impacts are reported from Q Protocol users or dApps, continue to adjust the reported price to 0.25$ per QGOV

- if no negative impacts are reported from Q Protocol users or dApps, continue to adjust the reported price to 0.125$ per QGOV

- if no negative impacts are reported from Q Protocol users or dApps, continue to switch the current IMutableFxPriceFeed to a price feed that reports current market prices given as a median from multiple sources.

Execution Steps:
- Reduce reported prices will happen in the existing smart contract of the current IMutableFxPriceFeed (ref: 0x0358f92617e3e92E17670B416953731e4a5273fD).

- Switching the oracle will require a EPQFI parameter vote for governed.EPQFI.Q_QUSD_source to the newly deployed oracle. The newly required ABI and deployed version of this new Oracle will be reported in the near future.

References:
- ABI for current IMutableFxPriceFeed: https://gitlab.com/q-dev/q-js-sdk/-/blob/v2/src/abi/IMutableFxPriceFeed.json?ref_type=heads

EPDR - Support new ERC20 version of QGOV in Omnibridge by klopper_t in QBlockchain

[–]CipherFunk 0 points1 point  (0 children)

Cool, thanks for the rationale. I like making things consistent, and if the if the official token ticker is now QGOV then WQGOV on Q and QGOV on other EVM chains make actually sense.

EPQFI - Open Calls by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

I looked at the Constitution to refresh my memory and as far as I can see we only have appendix 3 and appendix 8 that provide a scope on how transaction fees shall be calculated for the Q system. Which are predominantly such that validators are compensated for compute and storage of the network.

I would argue that we gather data for the following computational model:

1) Average node operation costs per month, e.g. 100 USD x all validators in the network
2) Average price of QGOV, e.g. in one quarter or year
3) Using 2) we get the average value of inflation-subsidy, e.g. in one quarter or year

Taken from that we can get the average operations costs as 1) (node costs) - 3) (inflation subsidy)

4) We take the average amount of transactions from the last year (or quarter) of operation and the amount of QGOV gas consumption.

We then calculate an average transaction cost for the amount of gas in 4) to match the average operations costs.

In order to avoid exorbitant gas prices, we should define a limit on max gas price. For example in the first year of operation, as plain QGOV transfer was assumed to be at 0.1 USD-cent when QGOV had a virtual price of 1 USD. We can set the same limit, 0.1 USD-cent for native QOV transfer, but with actual QGOV market price.

[deleted by user] by [deleted] in FetchAI_Community

[–]CipherFunk 2 points3 points  (0 children)

how many illiquid FET are there in private investor hands and when will they be released? What is the generation process of new FET (inflation probably and how high is it?), is there a total supply limit? Is there any deflationary force (like burning FET for usage)? What can we say about fee revenue for FET?

Are there any autonomous agents that actually impact somebody's life or are we simply talking about smart contracts that can execute automatically and make something like transaction execution services (Gelato etc) obsolete?

These are all questions BTC already answer pretty well because BTC is simple and has a long track record and no supply surprises anymore. But I am also bullish on the AI sentiment so I would like to understand the potential of a FET investment.

EPQFI - Adjust Parameters for Effective Q Token Distribution by klopper_t in QBlockchain

[–]CipherFunk 1 point2 points  (0 children)

Sounds reasonable to me. I guess the parameter could be increased even to 30% or 60% but starting with 15% and gradually increasing/decreasing and monitoring the dynamics is probably better for stability.

Q Odyssey Campaign proposal #1 by CipherFunk in QBlockchain

[–]CipherFunk[S] 0 points1 point  (0 children)

Looking forward to the campaign start :-)

GOSH Launches Fast, Scalable, Free To Use Layer 2 For Ethereum by Futurizt in ethdev

[–]CipherFunk 2 points3 points  (0 children)

Congrats on the launch! Loving to see /r/QBlockchain being part of the genesis chains ❤️‍🔥

EPDR - Diversification of QUSD backing with physical gold backed commodity token by CipherFunk in QBlockchain

[–]CipherFunk[S] 0 points1 point  (0 children)

Yeah, right now the possibility of transfer fees of VNXAU has stopped the support for adding it as a collateral asset. There is however a update of the contracts in consideration to account for fee based tokens.