What is the issuance price of BENQI(QI) coins?

The issuance price of BENQI (QI) was influenced by factors such as project value, market conditions, token utility, demand and supply dynamics, and the tokenomics and distribution model at the time of its launch.

Dec 20, 2024 at 08:09 am

Key Points:

• Overview of BENQI (QI) Coin
• Issuance Price and Market Performance
• Factors Influencing the Issuance Price
• Role of Demand and Supply
• Tokenomics and Distribution Model

Overview of BENQI (QI) Coin

BENQI (QI) is the native token of the BENQI decentralized lending platform built on the Avalanche blockchain. It governs the platform and allows users to participate in its ecosystem through staking, rewards, and voting.

Issuance Price and Market Performance

The issuance price of BENQI (QI) was initially set at $0.01 during its public sale in October 2021. Since its launch, QI has exhibited significant volatility in its market price, influenced by factors such as market demand, platform usage, and broader crypto market trends.

Factors Influencing the Issuance Price

The issuance price of QI is determined by a combination of factors at the time of the sale:

• Project Value: Investors assess the project's potential value based on its team, technology, and market opportunity.
• Market Conditions: External factors such as crypto market sentiment, liquidity, and overall economic conditions affect investor demand.
• Token Utility: The functionality and utility of QI within the BENQI ecosystem, such as staking and rewards capabilities, influence its perceived value.

Role of Demand and Supply

The interplay between demand and supply plays a crucial role in setting the issuance price:

Demand: High demand from investors interested in participating in the BENQI platform can push the issuance price higher.
Supply: The initial token issuance amount determines the available supply, which can influence the price if it is perceived to be scarce or abundant.

Tokenomics and Distribution Model

The distribution model and tokenomics of QI have a direct impact on its issuance price:

• Total Supply: The fixed maximum supply of QI limits its circulating supply and can influence its value over time.
• Token Allocation: The distribution of QI among founders, investors, and the community affects market availability.
• Token Use Cases: The intended use cases for QI within the BENQI ecosystem, such as staking and collateralization, drive its demand.

FAQs

Q1: What is the max supply of QI?
A1: The maximum supply of QI is capped at 10 billion tokens.

Q2: When can I stake QI?
A2: QI staking is currently available on the BENQI platform.

Q3: Can I purchase QI through DEXs?
A3: Yes, QI is tradable on various decentralized exchanges (DEXs) built on the Avalanche blockchain.