Vesting QNI into QNX Tokens

Overview

In the QUANTEX ecosystem, vesting QNI into QNX tokens offers flexibility and potential rewards for liquidity providers. This process allows users to convert their QNI holdings into QNX tokens or other non-native tokens that QNI consists of, such as WETH and other blue-chip cryptocurrencies.

The Vesting Process

Conversion

• Users can convert their QNI holdings into QNX tokens or non-native tokens that QNI consists of (e.g., WETH, other stablecoins). This conversion is governed by the protocol's rules, ensuring fairness and transparency.

• At the point of entry, users can lock in a fixed amount of QNX tokens or other desired tokens that will be received upon completion of the vesting period.

Vesting Period

• The standard vesting period is one week (7 days). During this time, users' QNI holdings are locked, and they accrue their predetermined QNX tokens or non-native tokens.

• Users have the flexibility to choose shorter vesting periods if they need liquidity sooner, but this comes with a proportional penalty.

Penalty for Early Exit

• If users choose to exit their vesting period early, they receive a reduced amount of QNX tokens or non-native tokens based on the percentage of the vesting period completed.

• For example, exiting after 24 hours (1 day) would entitle the user to 50% of their QNX tokens or non-native tokens. Exiting after 96 hours (4 days) would entitle them to 75% of their QNX tokens or non-native tokens.

Protocol-Owned Liquidity

• The liquidity provided by users through vesting is retained by the protocol (50%), reinforcing the concept of protocol-owned liquidity. This ensures long-term sustainability and reduces dependency on external liquidity sources. Remember, the remaining 50% goes towards the project while continuing to earn fees.