How is Quantum different from other crypto currencies?
Most crypto currencies constantly create new units in a process called mining. Since this process is very expensive, majority of the people running this operation constantly sell newly created coins to cover their expenses. This creates downward pressure on the price and new money has to flow into the market just to keep the price at the same level.
We put this process in reverse. Quantum tokens are destroyed constantly and the amount of units in existence decreases over time. Just as mining of other currencies creates downward pressure, Quantum destruction process puts upward pressure on the price. This process causes the value of Quantum tokens to increase over time even without fresh money flowing into the market.
Is Quantum a deflationary currency?
Yes! Because Quantum tokens get destroyed on a monthly basis, the amount of units in existence decreases each month. This makes Quantum one of the few real deflationary currencies in the world.
How are Quantum tokens destroyed?
Any excess funds generated from the liquidity pool operations are used to buy Quantum tokens on the market and sent to the black hole address. This process is transparent and auditable in real time using Ethereum blockchain.
How are funds in the liquidity pool used?
Quantum project deploys all funds in the liquidity pool to provide liquidity on all crypto currency and asset markets available. This is done by providing funds for margin trading to exchanges, connecting various markets by arbitraging price differences and making markets using price neutral algorithmic trading. New ways of improving our processes are constantly developed and implemented when suitable.
How are liquidity pool excess funds used?
Any income generated from the liquidity pool is used to buy back Quantum tokens on the market at the best possible price. These Quantums are then sent to the black hole address and publicly destroyed by using an Ethereum smart contract.
What if there is a loss in the liquidity pool?
We use advanced risk management models to mitigate any potential loss of funds in the liquidity pool. All models have been back-tested since the inception of bitcoin and are constantly modified to meet the risk profiles of any currency or digital asset that starts trading on open markets. Liquidity pool funds are diversified among different currency pairs and different marketplaces. This prevents material loss in an unlikely event of bankruptcy on an exchange or any other market event that might occur in the future.
Is the amount of Quantum tokens final?
Yes, the amount of issued tokens is final and based on the amount of funds collected in the presale period.
What protocol does Quantum use to issue tokens?
Quantum tokens are issued on Ethereum protocol.