What is Quai Network (QUAI)?

Deep Dive

1. Purpose & Value Proposition

Quai aims to create a decentralized monetary system that balances speed, low cost, and real-world value representation. Its dual-token model separates programmable utility (QUAI for EVM-compatible smart contracts) from stability (Qi, a "flatcoin" pegged to energy costs). Qi’s supply grows with network hashrate, tying its value to energy expenditure—a hedge against volatility seen in fiat or algorithmic stablecoins (Quai Network FAQs).

2. Technology & Architecture

The network employs a hierarchical structure of Prime, Region, and Zone chains to scale horizontally. Prime coordinates consensus, while Region and Zone chains handle regional/local transactions, dynamically adding shards as demand grows. Merged mining allows miners to secure all chains simultaneously. Its Proof-of-Entropy-Minima (PoEM) consensus resolves forks faster than traditional PoW by prioritizing blocks with the lowest entropy scores, enabling sub-second finality (CoinEx Analysis).

3. Tokenomics & Governance

QUAI serves as gas for EVM chains and incentivizes miners, with a diminishing issuance rate to promote scarcity. Qi, emitted proportionally to mining energy, acts as a decentralized stablecoin alternative. A built-in converter allows swaps between QUAI and Qi, enabling arbitrage and stabilizing their values. Governance is miner-driven, with GPU mining lowering entry barriers to prevent centralization (Quai Help Center).

Conclusion

Quai Network reimagines decentralized money through energy-backed stability and scalable PoW infrastructure. By combining programmable smart contracts with a hierarchical chain design, it targets global adoption without sacrificing security. Will its energy-centric model resonate in a market dominated by algorithmic stablecoins and high-throughput Layer 2s?