Alright so we announced the Subsidized Open-market Acquisition Protocol (SOAP) last week for @QuaiNetwork
But what does it really mean and why should you be excited?
Proof-of-Work consensus is the most secure, decentralized, and censorship resistant form of securing a blockchain.
Although PoW suffers from one key economic constraint: Miners seek to operate at a profit which leads to sell pressure of their mining rewards.
All Proof-of-Work blockchains have this issue of token emissions that largely go into the market after they are mined.
As you can see from this table, Bitcoin does $50M in $BTC emissions per day while on the bottom end Quai does $6k in $QUAI emissions per day.
Even the largest public $BTC miners can’t escape this reality.
In April some of the largest Bitcoin miners sold 115% of their production, meaning they had to dip into reserves just to stay afloat.
Others like CleanSpark regularly liquidate 80–90% of mined coins.
This constant sell pressure is just built into PoW economics.
For Bitcoin, this constant miner sell pressure is simply part of the process since the market is large enough to absorb it.
For smaller PoW networks like $QUAI, however, early miner liquidations can weigh heavily on price performance before the network even has a chance to reach adoption.
For reference since TGE @QuaiNetwork has emitted roughly $4.3M in $QUAI emissions.
This is good for distribution but bad for price performance. And miners aren't to blame since they're purely doing their part!
SOAP (Subsidized Open-market Acquisition Protocol) is designed to flip this dynamic.
Instead of miner emissions creating daily sell pressure, SOAP enables miners on Quai to earn external subsidy chain rewards through AuxPoW that route to open-market $QUAI purchases.
Think of it like mining $QUAI as normal but now other PoW tokens are mined alongside Quai during mining and used to buyback $QUAI.
The intended outcome gives @QuaiNetwork the ability to capture larger mining flows to provide:
- Daily buybacks: In the worst case, SOAP offsets natural miner sell pressure. In most cases, non-mercenary hashrate leaves surplus inflows, making order flow net positive.
- Bootstrapped yield: $QUAI acquired from buybacks will be used for rewards, creating high initial APYs that attracts TVL.
- Enhanced security: SOAP will accept work from multiple algorithms (SHA-256, scrypt, etc.) alongside the primary algo, broadening hardware participation and strengthening consensus.
The result of SOAP is a positive cycle:
subsidy chain inflows fund daily QUAI buys → price/liquidity improve →
more hashrate joins →
security rises →
more subsidy rewards earned →
inflows accelerate
Did someone say flywheel?
And the best part about SOAP is that it's almost here.
Testnet is slated for early October, with mainnet activation targeted for late-October.
The only question left is are you (🫵) joining the journey with us to make @QuaiNetwork the #1 blockchain?
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