Tokenomics

The utility (or coin) that drives the Qubic ecosystem is more than a currency—it’s an “energy” unit. These units are called $QUBIC and are used as fuel for executing smart contracts and accessing other services on the Qubic platform. Unlike conventional monetary units, $QUBIC is burned upon use, a fundamental concept for understanding Qubic’s unique token economics.

$QUBIC

In Qubic, $QUBIC serves as the standard for measuring the consumption of computational “energy.” Whether running a smart contract or retrieving data from an oracle, the action is performed by burning $QUBIC, and this consumption forms the basis of all transactions within the system. It’s important to note that, although $QUBIC has value, it is not paid out to the system’s individual computors; instead, it is destroyed or permanently removed from circulation to maintain a balance between inflation and deflation.

$QUBIC is burned when used, supporting the dynamic of inflation and deflation.
Every creation and execution of smart contracts affects Qubic.
Deflation can exceed inflation.

Qubic’s network uses “$QUBIC” (not “$QU”) as its official token code.

Epochs and $QUBIC Generation

Weekly Issuance Allocation

Type	Amount
Weekly issuance	1,000 B
Weekly max burn	550 B
Weekly effective issuance	450 B
CCF (8 %)	36 B
QEarn (12.25 %)	50.7 B
Minimum mappable supply	363.3 B

In Qubic, each epoch (a 7‑day period from UTC Wednesday 12:00 to the next Wednesday 12:00) can generate one trillion units of $QUBIC. Due to a halving mechanism, the actual production gradually decreases; the first halving has already occurred, leaving an effective weekly issuance of 450 billion $QUBIC. These $QUBIC are primarily allocated to computors, which are the core nodes of the network. In the most efficient scenario, a single computor can earn roughly 5.37 billion $QUBIC (363.3 billion ÷ 676). This allocation model is designed to incentivise efficiency—computors that run below optimal performance may see reduced earnings, with the remaining $QUBIC distributed to arbitrators. Arbitrators do not participate in smart‑contract governance, voting, or other $QUBIC distributions, preserving balance within Qubic’s economic framework.

Qubic’s total supply is finite; the upper limit on circulating $QUBIC is 200 T (excluding newly issued portions). At some point in the future—at least until 2041—the burn rate will equal or exceed the issuance rate, causing the velocity of circulating coins to stall. Nonetheless, miners can still earn rewards permanently. This safeguard comes from embedded economic drivers: theoretically, when Qubic’s circulating quantity approaches 999 T $QUBIC, the quorum will trigger a weekly burn of one trillion $QUBIC as execution fees, ensuring continuous revenue generation.

Transfers and Fees

Transfers on the Qubic network are free—this is where the platform’s efficiency and user experience shine. Moreover, the “fee generated by smart‑contract execution” is not a traditional cost but rather a consumption process of $QUBIC that is not allocated to computors, reinforcing the notion of $QUBIC as an “energy” rather than a fiat‑like currency.

How Does the $QUBIC Burn Mechanism Work?

Currently, Qubic employs two burn mechanisms:

Launching an IPO to initiate a smart contract, where the purchase cost of shares is burned.
New smart‑contract deployments burn $QUBIC.

Future additions will include two more mechanisms:

Oracles burn $QUBIC when supplying data to Qubic.
Aigarth burns $QUBIC during its usage.

$QUBIC is the lifeblood of the Qubic network, powering operations, incentivising efficiency, and maintaining equilibrium through reward and burn systems. In the design of the Qubic platform, the role of $QUBIC highlights its flexibility, efficiency, and democratic nature.