After five months of research, the Qitmeer Economic Model Research Group released a test network economic model to address the special transformation and transition of the Qitmeer network, guided by the decentralized blockchain spirit and created this unique community decision-making and free game model.
The following are high-frequency questions provided by Qitmeer community:
● HalalChain ERC20 token: HLC
● Qitmeer test network token: Pmeer
● Qitmeer main net coin: Meer
- HLC token that has been burned: B-HLC
- The economic model of the QITMEER public chain test network looks complicated. Can you briefly introduce its characteristics in a few words?
The model has three characteristics:
First, the total amount is constant. That is, the value will not be produced out of nothing, nor will it disappear for no reason. To this end, the number of burned HLC is used to determine the conservation method of Pmeer, and the special mining mechanism of Qitmeer test network token pmeer is given.
Second, free trading during the test network. While in the stage of test network, HLC token and Pmeer holders can trade freely. The HLC token holder can convert it to the test network at any time. Because of the amount of burning, HLC will reduce circulation and the price has risen. Pmeer has real value because of costing electricity and constantly raises its intrinsic value. Therefore, the two tokens have been in a dynamic game.
Third, different conversion ratio. Once the test network is finished, the three groups of the burned HLC token holder, pmeer holder, and un-burned HLC holder will get the conversion of the main network token (meer), but the conversion ratio is different according to different groups of token holder. The burned HLC token holder will receive the compensation of the optimal conditions, and the other two groups will also have different conversion ratio due to different game results.
2. There are four types of tokens involved in the Qitmeer model, B-HLC, HLC, Pmeer, Meer. What is the relationship between them? After the main network launching, only Meer token is available to trade ？
To be honest, those who first look at this model feel that it is the hardest to understand the coins of these different rights, and the creative design point of the model is as mentioned above, it is based on equal monetary thoughts and free game ideas. A reasonable formation condition was prepared for the production of a public coin MEER.
HLC is the token of HalalChain, the precursor of Qitmeer’s predecessor food traceability project. It was released in 2017 based on ERC20 and hopes to create an Islamic halal food traceability through the form of a coalition chain. Due to various reasons and constraints of blockchain early technology, policy environment, and industrial chain resources, there is still a long way to go in the specific practice process. To this end, the HLC Foundation is determined to carry out the transformation. After nearly half a year of in-depth investigation and research, it finally chose to transform HLC into a Qitmeer public chain, using a new generation of public chains of BLOCKDAG technology, dedicated to Islamic finance and Pratt & Whitney. financial. After more than a year of hard work by the technical team, the open source was successfully opened at the end of June 2019, and the economic model of the test network was launched in September.
At the same time, we must take into account the three project technology carriers of the alliance chain, the test network, and the main network, and take into account the different stages of tokens. Therefore, the model involves a total of four rights holders holding the currency: the holder of HLC TOKEN, destroying The investors of HLC TOKEN and the token PMEER holders in the test network (produced by miners mining, the output is determined according to the number of HLC tokens destroyed, that is, B-HLC determines the number of Pmeers). In the end, the coins in the hands of the first three rights owners are mapped to the main network and become Meer, which is the currency of the Qitmeer main network.
3. In the design of the Qitmeer economic model, why should the number of HLC tokens burned to be used to determine the amount of test net token Pmeer?
For example, burning an HLC TOKEN can be exchanged for a PMEER. The reason for this is that after the Pmeer of the burning power and HLC TOKEN are fully traded, the two sides will have real equivalent value, and then the Qitmeer can be driven as the underlying native currency，the landing of business applications and ecological prosperity.
So, how does the test network give Pmeer value? Qitmeer technically uses the POW mining mechanism and UXTO trading model in the classic Bitcoin system. It needs to convert Pmeer through power conversion and mining. The output of the token is based on mining, not distribution. In essence, It is to attach the cost of electricity and the value of labor to Pmeer.
Pmeer generates intrinsic value in terms of power consumption, but how does HLC TOKEN generate value? At this time, the model creatively designed a “deflation compensation value”, which is to replace the PMEER quasi-certification certificate with the method of destroying the HLC token. At the same time, the reduced price of the HLC TOKEN circulation plate will rise and can be traded with PMEER at any time, thus making PMEER and The value of HLC TOKEN is fully exchanged.
The total amount of Qitmeer test network is constant at 1 billion. At the same time, to ensure the intrinsic value of Pmeer, it must first be through the mining output. Considering the interests of the former HalalChain holders，the economic model sets two ways: voluntary burning and free exchange.
If the user chooses to voluntarily burn,1HLC=1Pmeer, through the mining method to convert this part of the HLC token into a power-consuming PMEER.
If the user chooses the method of free exchange, HLC token and Pmeer have an exchange ratio of unequal value，It depends on the game in the market, How to convert it: 1Pmeer=βHLC. holders who hold HLC tokens and are unwilling to burn can only redeem Pmeer through the trading market, this will result in a game. Equivalent exchange or unequal exchange is entirely determined by the parties to the transaction.
4. What if someone doesn’t want to convert HLC into Meer?
The HLC token burning was determined by the members of the community themselves. The main Qitmeer network will introduce new businesses, economies, miners, etc. These groups will become new community members.
The old community members who originally held HLC tokens will be free to choose. One is optimistic about the development of Qitmeer and continue to support the project through dual-channel convention; the other is that members holding HLC tokens can be freely traded in the secondary market.
Therefore, if the old community members are not willing to burn HLC or the converting of the main network, they can sell it freely in the secondary market, and the new community members become supporters of Qitmeer. Of course new Qitmeer community members and original HLC community members integrate to support the development of Qitmeer.
5. Can I understand the test network economic model as a capital increase?
The total amount of tokens of HLC TOKEN is 1 billion, HLC+Pmeer is also 1 billion in the test network stage, and the total amount of Qitmeer is still 1 billion when it comes to the main network. This is known as a three-stage conservation of quantities program.
Notice that when the number of COINS is determined, we assign value to them. At this time, the HLC token was transferred to PMEE under the will and interest of the community members. In the test network stage, HLC and Pmeer exist at the same time, HLC+Pmeer=1 billion; The third step is the converting stage of the main network. HLC and Pmeer are all converted to the master network, and the total amount of the main network token Meer is still 1 billion.
It must be mentioned that the official launch of the main network represents the ecological opening of the public chain, and HLC foundation will introduce new businesses and interest groups in advance, which means that the circulation value of the whole network will increase and the valuation will increase. At this time, the total asset value of Meer is increased, which is equivalent to the capital increase process. Members of the new community participate in the Qitmeer public chain through holding Meer. Therefore, the converting ratio between HLC and Pmeer is not 1:1, but a conversion relationship. Has cost value because, Meer, holding Meer new members of the community, or pay the cost of mining, either buy real gold and silver, this part of the value can not wipe away, image, increase endowment spread, if stubbornly mean dilution, and equity financing, such as new members of the community to bring the increase of the actual value, absorb the old community members of equity share, but old members of the community assets value has not diluted.
6. Is it better for the HLC holder to burning HLC of converting or not to burning HLC of converting?
That’s the beauty of the game, it depends on your own
One result of the example calculation: If the 200 million HLC TOKEN is burned, then the destroyer will get 20% more of the main network converted coins.
In the test network stage, both HLC and Pmeer tokens exist, but the total amount of test network is determined by the burned HLC. There is a trade-off between HLC and Pmeer. More Pmeer means less HLC, and less Pmeer means more HLC. we suppose 400 million HLC is destroyed, accounting for 40% of the total amount of the original HLC token, which also determines that the total amount of test network is 400 million, which will map to 40% of the main network, which means that the number of destroyed HLC determines the proportion of test network in the main network.
In the setting of the economic model, all users who participated in the burning HLC token during the test network have priority to enjoy the mapping qualification of the main network, and the mapping weight is higher. The most intuitive reflection is that it is more advantageous for HLC holders to destroy HLC than not to destroy HLC mapping. To what extent is it advantageous? The following model can be used to figure out.
The converting ratio (fP) of b-hlc (burned HLC), the converting ratio (fX) of HLC, and the converting ratio (fY) of pmeer can be seen by using the formula.
N stands for the total amount of the main network, and N0 stands for how much benefit you can share.
Since N is the total amount of the main network and a constant, fP is a monotonically increasing function of P (amount of destruction), that is, the more destroyed, the larger the proportion of destruction. Since (10-p)< (10-p + beta P), (10-p)/(10-p + beta P) is always less than 1, that is, the mapping that is not destroyed is lower than that of the destructor.
If 200 million is destroyed and HLC and pmeer value is approximately equal, that is, beta = 1, then
The mapping ratio of b-hlc (destroyed) is fP= 2N/100=N/50;
HLC (undestroyed) mapping ratio fX= 8/10×fP=2N/125
Obviously, fX is 20% less than fP, which is the compensator’s benefit.
In addition, the destruction of HLC can also get additional bonus, namely mining bonus. The destruction of HLC can be divided into two situations: one is that you don’t dig the mine and wait for the map of the main network after the destruction; the other is that you dig the mine and get Pmeer by yourself. The second situation is that you can not only get the map weight of the destruction, but also get one more map of the main network of Pmeer.
7. Can I predict my possible benefits if I do not burn the HLC Token?
If you are a good player and make a lot of money playing the trading game between PMEER and HLC Token, you also may lose a lot of money due to bad luck. That’s the beauty of the game.
The best thing about investing is the uncertainty of the future. The worst thing about investing is the uncertainty of the future. If you are willing to burn and get at least 20% of the converting of the main coin in the future, it will be best choice for you.
If you really want a heartbeat game, you can trade in the market without burning HLC Token. It is likely to become a large HLC holder, but it is also possible to lose money in the game.
Let me make a metaphor: it’s like buying bonds and stocks, and burning HLC tokens is like buying bonds with a guaranteed return, buying stocks is like holding HLC Token, which is a roller coaster game in the mark. et, It all depends on your preference.
8. What time is available for HLC Token burning?
According to the AMA roadshow in mid-September, after the community users fully understand the economic model, we will start a window period of HLC token burning. The users can choose the HLC burning by themselves, and at the end of the window period, it will no longer accept the burning.
HLC burning is made by transferring the HLC token to a black address, which is a certificate generated on the Ethereum network. The certificate records your coin converting relationship and proportion information in detail, which is a decentralized blockchain confirmation and open and transparent. When the main network is going to be converted, Qitmeer will automatically convert the electronic certificate to confirm and transfer the assets, and then you will get the main network coin MEER.
9. Why doesn’t the HLC foundation destroy the HLC token it holds?
In this test network model, the foundation took a step back in its choice of benefits. It chose to lock the position, lost liquidity, and obtained the lowest mapping ratio. At the same time, it also made a image to let the market that the Token is in the hands of the foundation were not put into the market, which is a very positive action for the cryptocurrency market. The person who burns the token, loses liquidity, gets a higher mapping ratio.
Therefore, instead of the burning HLC of the HLC foundation, the public lockup is subject to community supervision.This is a kind of move to give profits to community users and can also be seen as a kind of friendly “punishment".
10. If no one burns HLC token, can’t miners still mining?
The total amount of Pmeer (token of test network) is determined by the number of HLC burned. In the process of test network, a burning window period will be started for everyone to participate in the burning acrivites，when the window period ends, the total amount of Pmeer will be fixed
Make an extreme assumption: if no one burns HLC Token, then all the old community members are unwilling to destroy HLC, the total amount of Pmeer is 0, and the mapping proportion in the main network is also 0, which is equivalent to choosing to exit the community together. At this point, new members of the community go straight in and become Qitmeer supporters.
This is a fair and interesting game mechanism…
11. How long can i get the main network coin after HLC burning?
This requires the end of the test network, and when the main network is online, it can map or mine to get the main network coin. The amount of HLC token destroyed determines the total amount that Pmeer can produce, and also determines the operation cycle of the test network (T=P÷520×120÷3600÷24÷30 months, P is the amount destroyed). If the market is extremely enthusiastic, the longest-running period of the test network shall not exceed 18 months. If it’s short, maybe it takes 12 months.