2. How Qnax Works
2.1 Signal Generation
Qnax provides trading signals based on:
AI Algorithms – Machine learning models analyze historical price movements and market sentiment.
On-Chain Data – Smart contract interactions, whale movements, and token transfers are considered.
Expert Analysts – A team of professional traders verifies and refines signals.
Each trading signal includes:
Entry price
Stop-loss level
Take-profit targets
Confidence score
2.2 Signal Accuracy & Compensation Model
Each signal is tracked to determine its success. If a signal reaches its stop-loss before hitting a take-profit target, it is classified as "Incorrect". When this happens, affected users automatically receive QUX token compensation.
Compensation Formula:
Users receive QUX tokens proportional to the signal's confidence score and their trading volume.
The compensation pool is funded through trading fees, platform revenues, and QUX staking incentives.
If a signal is correct, no compensation is issued.
2.3 Staking
QNAX enables users to stake their QUX tokens in exchange for a range of benefits, including governance rights, enhanced yield rewards, and priority access to premium trading signals. The staking system is designed with dynamic multipliers and insurance-based reward mechanisms to promote long-term participation and ensure equitable compensation for both active and risk-exposed traders.
Key Features:
Tiered APY System based on staking duration and amount
Loss-Based Boost Multiplier for users who incurred verified losses trading with QNAX signals
Lockup Bonus for fixed-term staking contracts
Governance Weighting based on total staking score and tiers.
<Staking reward tiers>
Staking Duration
Min Amount (QUXY)
Base APY
Lock Bonus
Loss Multiplier (if applicable)
Total Max APY
7 days
100 QUXY
4%
0%
+1%
5%
30 days
500 QUXY
7%
+1%
+2%
10%
90 days
1,000 QUXY
10%
+2%
+3%
15%
180 days
2,500 QUXY
12%
+4%
+4%
20%
365 days
5,000 QUXY
15%
+5%
+5%
25%
Base APY is the default annual reward.
Lock Bonus is added when tokens are staked under fixed lock-up.
Loss Multiplier is granted to users who submit verified loss reports due to QNAX signal-based trading.
Max APY is capped to ensure system sustainability.
2.4 Staking Algorithm – Technical Breakdown
The QNAX staking algorithm consists of four primary modules, each interacting with the staking smart contract deployed on Solana blockchain:
Staking Validator Module
Verifies token ownership and transfer using SPL (Solana Program Library) token standards.
On stake entry, tokens are transferred to the QNAX staking contract address.
Validates staking tier and lock-up selection.
// Pseudocode (Solana's Rust-based Anchor equivalent)
fn stake_tokens(ctx: Context<Stake>, amount: u64, lockup_days: u32) -> Result<()> {
let user = &mut ctx.accounts.user_state;
require!(amount >= MINIMUM_STAKE_AMOUNT, Error::InsufficientStake);
user.staked_amount = amount;
user.lockup_end_time = Clock::get().unwrap().unix_timestamp + (lockup_days * 86400) as i64;
emit!(StakeEvent { ... });
Ok(())
}
2) Reward Distribution Engine
Calculates base APY per block.
Compounds daily, with bonus multipliers applied based on staking metadata.
Auto-adjusts using a deflationary issuance model of QUXY (as supply decreases, rewards are redistributed proportionally among stakers).
# Pseudocode logic
def calculate_daily_reward(staked_amount, base_apy, lock_bonus, loss_multiplier):
daily_rate = (base_apy + lock_bonus + loss_multiplier) / 365
return staked_amount * (daily_rate / 100)
3) Loss Verification Engine
Users can submit verified trades that resulted in losses using QNAX signals.
The system uses API integration with exchanges (Binance, Bybit, etc.) or QNAX trading dashboard to cross-verify.
Approved users get a loss compensation multiplier on future staking APY and potential partial refund in QUXY.
// Smart contract fragment
fn apply_loss_multiplier(ctx: Context<LossProof>, tx_id: String) -> Result<()> {
let tx_data = fetch_exchange_tx(tx_id);
require!(tx_data.loss_from_qnax_signal, Error::InvalidClaim);
ctx.accounts.user_state.loss_multiplier += 1; // add percentage point
Ok(())
}
4) Governance Scoring & Bonus Voting Rights
Staking score is calculated as: Score = staked_amount × lock_duration_multiplier × loss_history_multiplier
Higher scores provide greater voting power in DAO proposals and access to limited governance-exclusive pools.
5) Conceptual Flow Chart
USER
│
│ Stake QUXY
▼
Staking Contract (Solana)
├─ Verifies lock-up period
├─ Logs stake info
├─ Links to Loss Record Engine (if opted)
│
▼
Daily APY Engine
├─ Base Rate (duration)
├─ + Lock Bonus
└─ + Loss Multiplier
│
▼
Rewards Vault
└─ QUXY issued daily to user wallet
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