The primary roles of the $QSR token are the following:
- Support of Quasar’s PoS consensus
- Payment of transaction fees on the Quasar chain (rewarded to validators)
- Vault creation (by staking to network validators)
- Chain-level governance (e.g. voting on protocol upgrades and adjustments to base transaction fees)
- Q-Treasury governance (e.g. setting swap fees and voting on which vaults should receive incentives)
Quasar’s proof-of-stake blockchain, built with the Tendermint consensus engine, uses $QSR to provide security to the chain. Validators can participate in committing blocks to the blockchain by staking a required sum of $QSR.
You can find additional details on Quasar's PoS consensus and how the $QSR token is used to secure the chain in the Security section of our documentation.
The $QSR token acts as a governance token. Token holders will decide the future of the protocol by proposing, vetting, and passing upgrades and changes to the protocol. You can find additional details on how $QSR is used for chain-level governance in the Governance section of our documentation.
All transaction fees on Quasar are paid in $QSR. Vaults may be able to implement their own fees (e.g. for early withdrawal), but this is not enforced at the chain level.
To create a new vault, creators are required to delegate a minimum amount of $QSR to a network validator. This acts as a barrier to indiscriminate vault creation, alleviating the threat of any spamming of fraudulent or non-productive vaults which would clog the chain’s resources. Moreover, this staking requirement incentivizes vault creators to align with validators on the objective of a healthy and secure Quasar chain. In this way, $QSR helps facilitate sustainable scaling and incentive alignment as new vaults are deployed on Quasar.
If the market value of the $QSR token drops suddenly and dramatically, consensus-level security may be compromised which is a risk for all PoS blockchains. This effect could be exacerbated by vaults running strategies that generate returns based on $QSR depreciation. Requiring $QSR for vault creation inhibits any attempt at a coordinated attack aiming to devalue $QSR and disrupt consensus-level security. By requiring vault creators to contribute to chain-level security, we can avoid the risk of such a conflict of interest and better align vault objectives with the health and security of the Quasar protocol.
The Q-Treasury is the community pool for the Quasar chain. Its objective is to support the sustainable growth of value for the $QSR token. To do this, Q-Treasury coordinates strategic issuance, absorption, and containment of the $QSR token. All $QSR holders are intrinsically participants of Q-Treasury and can take part in Q-Treasury governance decisions such as choosing how to deploy assets, setting swap fees, and voting on which vaults should receive incentives. Liquidity gathered in Q-Treasury can be allocated through governance to fund and provide incentives for endeavors contributing to the Quasar ecosystem. For example, Q-Treasury can potentially be governed to deploy gathered liquidity into other Quasar vaults to jumpstart those that show promise.
With Q-Treasury, Quasar is taking inspiration from the model of protocol-owned liquidity pioneered by Olympus DAO. The Q-Treasury holds a reserve of $QSR which is made available to Quasar users via a bonding mechanism. Buyers will be able to purchase $QSR with other assets (as long as the Q-Treasury supports it) at a discounted rate. Purchased $QSR will be available to the buyer after a short bonding period of several days. This mechanism allows Quasar to regulate the supply of $QSR while also gathering liquidity from a variety of sources, allowing $QSR to be backed by a diverse set of assets.
Finalized details regarding Q-Treasury and its functions are currently still in development.
The allocation for the $QSR token is as follows:
Max Supply: 1,000,000,000 (61% minted at launch)
- Investors: 21%
- Quasar Founders & Team: 14.5%
- Public Liquidity Seeding via LBP: 4.5%
- Unallocated (future fundraising & team members): 9%
- Incentives: 10%
- Community Pool (future airdrops & community spend): 25%
- Inflation (rate set to 0% at mainnet, 5% after LBP): 15%
- Advisors: 1%