# QF Tokenomics

Tokenomics is designing systems of incentives to underpin blockchain networks.&#x20;

Questflow's tokenomics are based on three principles:

* **Fixed Total Supply**: A fixed maximum supply of 1 billion $QF.
* **Autonomous Faucets & Rewards**: Consistent rewards to Developers, Creators, Stakers and Early Supporters.&#x20;
* **Usage-driven Sinks & Burn Mechanism**: An $QF burn mechanism based on network usage and security.&#x20;



## Fixed Total Supply

There is a fixed maximum supply of 1 Billion $QF coins.

* 600 million $QF coins will be distributed when it launches.
* 400 million remaining coins will be emitted and paid to Creators and their Guardians as Rewards. This occurs every hour.



## Faucets and Token Supply

Questflow Protocol employs a strategic distribution of QF Coins through various reward mechanisms:

* **Creator Rewards:**
  * Compensation for developers and creators who contribute valuable content or applications to the ecosystem.
* **Curation Rewards:**
  * Rewards for users who curate and highlight quality content, ensuring valuable contributions are recognized.
* **Network Security Guardian Rewards:**
  * Tokens are distributed to participants who help secure the network, maintaining its integrity and performance.
* **Bootstrapping Rewards:**
  * Incentives given to early adopters to kickstart network growth and engagement.
* **Airdrop Rewards:**
  * Distribution of tokens to early supporters and community members based on their contributions and credits.





## Sinks and Token Demand

> Well-designed sinks correlate with network usage. As usage increases, more tokens drain away, which creates upward price pressure. Upward price pressure increases the value of token rewards used for security, software development, and other constructive activities. Designed correctly, sinks create a virtuous cycle.
>
> Excerpt From Read Write Own Chris Dixon.

Questflow's tokenomics also focus on creating demand through well-designed sinks:

* **Usage-Driven Sinks:**
  * As network usage increases, more tokens are consumed, reducing supply and creating upward price pressure.
* **Access Sink for Utility:**
  * Tokens are required to access various utilities and services within the network, driving demand as more features are utilized.
* **Security Sink for Staking:**
  * Users stake tokens to enhance network security, effectively removing them from circulation and increasing scarcity.

This system fosters a **virtuous cycle** where increased network activity leads to higher token value, incentivizing further development and security enhancements.



