Total circulation of BENQI(QI) coins

The total circulation of BENQI (QI), influenced by token economics, ecosystem growth, and market demand, plays a vital role in determining its value, with an increase in circulation potentially leading to a decrease in price and vice versa.

Dec 23, 2024 at 10:42 am

Total Circulation of BENQI (QI) Coins: A Comprehensive Guide

Key Points:

• Overview of BENQI (QI)
• Factors Influencing QI's Total Circulation
• Determining QI's Total Circulation
• Calculating Circulating Supply vs. Total Supply
• Impact of Supply Dynamics on QI's Value

Overview of BENQI (QI)

BENQI (QI) is a decentralized lending and borrowing protocol built on the Avalanche blockchain. It empowers users to deposit, borrow, and earn interest on crypto assets, facilitating lending and borrowing operations within the DeFi ecosystem. QI is the native token of the BENQI platform, serving as a governance token and utility asset within the protocol.

Factors Influencing QI's Total Circulation

Multiple factors contribute to QI's total circulation, including:

• Token Economics: QI tokenomics determine the issuance and distribution mechanisms, which play a crucial role in controlling circulation.
• Ecosystem Growth: As the BENQI protocol attracts more users and generates revenue, it can lead to increased QI issuance to incentivize participation and reward contributors.
• Market Demand: Fluctuations in market demand for QI, driven by factors such as platform adoption, trading volume, and price speculation, can influence circulation.

Determining QI's Total Circulation

To determine QI's total circulation, consider the following steps:

• Inspect Official Documentation: Refer to the BENQI whitepaper or official announcements to obtain information about the initial issuance and any subsequent issuance events.
• Monitor Token Contract: Examine the transaction history of the QI token contract to track issuance and burn events, which provide insights into the current supply.
• Leverage Block Explorers: Use block explorers like SnowTrace or Avalanche Explorer to track QI transactions and balance changes across known wallets, providing a snapshot of the total supply.

Calculating Circulating Supply vs. Total Supply

QI's total circulation encompasses both circulating and non-circulating supply:

• Circulating Supply: This refers to QI tokens that are actively traded, held in wallets, or used within the BENQI protocol for lending and borrowing operations.
• Non-Circulating Supply: This includes QI tokens that are locked in long-term smart contracts, such as staking pools, and token allocationsreserved for future issuance or strategic partnerships.

To calculate QI's total circulation, add the circulating supply and the non-circulating supply.

Impact of Supply Dynamics on QI's Value

The total circulation of QI has a significant impact on its value:

• Increased Circulation: If QI's total circulation increases due to new issuance or unlocking of non-circulating supply, it can potentially lead to a decrease in price as supply outstrips demand.
• Decreased Circulation: Conversely, if circulation reduces due to token burns or locking in long-term contracts, it can contribute to an increase in price as demand exceeds supply.

FAQs:

What is the current circulating supply of QI?
The circulating supply of QI is approximately 8.9 million tokens as of March 2023.

How can I track changes in QI's total circulation?
Monitor official BENQI announcements, inspect the QI token contract on block explorers, and refer to reliable cryptocurrency websites that provide up-to-date information.

What is the maximum supply of QI?
There is no maximum supply limit for QI, allowing for potential issuance in the future to support ecosystem growth and incentivize participation.

How does QI's circulation compare to other DeFi tokens?
QI's total circulation is relatively low compared to other DeFi tokens, with a circulating supply of approximately 8.9 million tokens, which may contribute to its volatility and price sensitivity.