3. QUXY Tokenomics

3.1 QUXY Token Utility Breakdown

The QUXY token is not merely a reward token—it is the economic engine and governance core of the QNAX ecosystem. Designed to fuel engagement, reduce user friction, and enhance decentralization, QUXY serves multiple strategic roles. Each utility is structured to reinforce a self-sustaining and community-driven financial network.

1) Compensation for Incorrect Signals (Insurance-Like Protection)

QNAX acknowledges that algorithmic predictions, while powerful, are probabilistic in nature. To uphold user trust and minimize downside risk, QUXY is used as a form of automated compensation when users incur losses due to signals that underperform significantly compared to market benchmarks.

• Mechanism: Users who verify that their trades were executed based on specific QNAX signals (e.g., confirmed via wallet signatures and timestamps) and resulted in losses exceeding a defined threshold (e.g., -15%) may be eligible for partial compensation in QUXY.

• Calculation: A dynamic algorithm assesses market conditions, volatility at signal time, and trade deviation to determine QUXY reimbursement.

• On-chain Proof: All claims are processed through smart contracts ensuring transparency, fairness, and no manual interference.

This feature effectively functions as decentralized trade insurance, setting QNAX apart from traditional analytics platforms.

2) Compensation for Trading Volume (Trade-to-Earn Incentive)

To encourage active participation, QUXY offers volume-based rewards to users who trade frequently using QNAX integrations.

• Metrics Tracked: Trading volume (USD-equivalent), frequency, asset diversity, and liquidity depth.

• Rewarding Curve: QUXY distribution increases exponentially with volume up to a cap, with additional bonuses for users using integrated DEXs or partner platforms.

• Sybil Protection: Anti-abuse mechanisms analyze wallet behavior, ensuring volume generation is organic and not gamified through bot wash trading.

This Trade-to-Earn model ensures utility-driven QUXY circulation and incentivizes real economic activity over passive holding.

3) Rewards for Accurate Signal Execution (Performance-Based Mining)

Users who make profitable trades based on QNAX signals are rewarded with QUXY tokens through a Performance Mining system.

• How it works:

  • QNAX signals are timestamped and stored on-chain.

  • Traders submit proof (trade hash + timestamp + exchange API data) that their execution aligned with the signal.

  • Profitability is assessed using price differentials and profit ratios.

• Reward Variables: Signal accuracy, profit margin, trade timing, and strategy complexity contribute to the final QUXY reward amount.

This unique “Proof-of-Signal Execution” reinforces trust in QNAX analytics and rewards users for intelligent application of insights.

4) Staking for Governance and Enhanced Rewards

The QUXY staking system underpins both governance and reward optimization.

• Governance Voting: Staked QUXY grants voting rights on protocol upgrades, signal strategies, treasury allocation, insurance parameters, and partnership decisions.

• Reward Boosting: Stakers receive higher reward multipliers in:

  • Trade-based mining

  • Signal-based performance rewards

  • Liquidity programs

• Staking Tiers: Multiple lockup options (30d, 90d, 180d, 365d) offer progressively higher benefits and DAO influence.

This aligns token holders with long-term success and encourages active participation in decentralized governance.

5) Payment for Premium Services and Exclusive Signals

QUXY functions as the native payment token for QNAX’s advanced features, including:

• Exclusive alpha signals

• Whale wallet tracker insights

• Early access to new indicators

• AI-driven strategy simulations

• Customizable signal alerts via Telegram, email, and dApps

Discounts of up to 50% are available when users pay in QUX versus fiat or stablecoins, promoting natural token utility demand and reducing sell pressure.

6) Liquidity Provision Incentives (Liquidity Mining)

To ensure deep liquidity for QUXY on decentralized exchanges and AMMs, QNAX allocates QUXY to liquidity providers through liquidity mining programs.

• How it works:

  • Users provide QUXY pairs (e.g., QUXY/USDC, QUXY/SOL) on supported DEXs.

  • In return, they receive LP tokens that accrue QUXY rewards based on:

    • TVL provided

    • Duration of liquidity

    • Pair volatility and depth

• Bonus Pools: Partnered liquidity farms (e.g., with Raydium or Orca) may offer dual rewards in QUXY + platform tokens.

This mechanism fosters a sustainable DeFi liquidity backbone for QUXY, enabling seamless exchange and increasing ecosystem stability.

Each of the QUXY token's functions—compensation, incentivization, governance, utility access, and liquidity provisioning—works cohesively to form an interconnected value cycle. This ensures the QUXY economy is not only resilient and engaging, but also continuously evolving with trader needs, market conditions, and community direction.

3.2 Token Distribution

• 40% - Reward Liquidity (Compensation pool, staking incentives)

• 3% - Team (Locked for 24 months, vesting schedule applies)

• 10% - Development (Locked for 48 months, vesting schedule applies)

• 42% - War Chest (Investment and liquidity for future business developemtn and partnerships)

• 5% - Partners (Used for future ecosystem expansion)

3.3 Deflationary Mechanism

• Transaction fees: A small fee on transactions will be burned, reducing supply over time.

• Buyback & Burn: A portion of platform revenue will be used to buy and burn QUXY tokens, ensuring long-term value growth.