The core goal of stablecoin governance is to maintain the price long-term stability, which requires a large enough market value to maintain. In the development process of stablecoin, a large amount of liquidity is needed to promote the growth of market value, and so many development teams of stablecoin constantly research and develop the optimal model of stablecoin. The emergence of the algorithmic stablecoin model releases the collateral in the lending of stablecoin, which greatly promotes the liquidity of the stablecoin market.
Algorithms stablecoin market status quo
At present, the main Algorithms stablecoins include Basis Cash(stable currency BAC, governance currency BAS), ESD, and FRAX (stable currency FRAX/ governance currency FXS). Basis Cash announced the latest development route of Basis Cash V2 on January 19. According to the website of Basis Cash, the price of its Algorithms stablecoins BAC is 0.623 US dollars. Currently, the total number of BAC in circulation is 61,312,100, with a market value of 38,831,200 US dollars. Its governance token BAS is currently priced at $107, with a total supply of 1,000,001 pieces. According to CoinGecko, among all stablecoins BAC ranks 15th in total market value, and its circulation has increased 71.8% in the last 30 days.
Empty Set Dollar's stablecoin ESD ranked 8th in the CoinGecko stablecoin market， and capitalization at $240,770,050, with total circulation down 19.1% in the last 30 days. ESD is currently trading at around $0.55.
At the end of 2020, Frax, a part of the emerging algorithm stablecoin, has attracted much attention since its launch on December 21, 2020. According to the website of Frax, as of January 22, the current price of its partially algorithmic stablecoin Frax is $1,000, with a total supply of 123.3717 million and a market value of 123.3717 million. At 83.75%, Frax has reached its lowest margin range since it was issued on Dec. 21, 2020. The price of FXS is fluctuating from $3.20 to $27.875. The current price of FXS Oracle Price is $11.393, and the supply of FXS is 2.152 million. According to Coingecko, Frax ranks 10th in total stablecoin market capitalization, with 30-day total circulation up 344.0%.
In terms of market capitalization, ESD>FRAX>BAC; From the conciseness of the economic model of tokens, FRAX >ESD>BAC; In terms of the volatility seen in the mechanism setting, BAC>ESD>FRAX. In the development of these algorithms stablecoin, the governance mechanism behind and development direction are different, but the key behind the huge liquidity of the project is the execution of the team and the active participation of the community members in the community governance. Therefore, in the process of QSD development of QAIN V2, the development team must have strong executive power and make the community benefit in the process of community governance.
Development Status of QIAN
QUSD and KUN have been recognized by the industry with the joint efforts of the development team and community members. QIAN V1 currently has 17 coins on the BSC chain and 18 coins on the ETH chain. Besides, it has cooperated with several project parties to carry out liquidity mining and launched the BSC's "Hidden Loong: Christmas Treasure Hunting" QIAN KUN NFT mining event, Dego-QAIN Christmas NFT airdrop and mining activities and so on. However, the development team also had to admit some deficiencies of the project, such as the occurrence of the KUN mining contract attack, and some development resources cannot be obtained due to lack of funds.
KUN on the BSC chain as of January 22, 2020, the price is 0.3564 USD, and
the total supply is 1,061,133.125375 KUN. There are 5,041 addresses and 24,046 on-chain transfers; Price of $0.2135 on ETH chain, total market capitalization of $227,251.58. There are 205 addresses and chain transfers for 5,349 times.
However, the development team is also deeply aware of the problems encountered in the development process of QIAN project. In QIAN V1, the total supply of management token KUN is 12 million. There is no pre-mining, no private placement, no team distribution, and 100% is distributed through mining. This allocation model also results in a serious shortage of funds for the development team, difficult publicity and lack of development resources. To some extent, it also affects the enthusiasm of community members to participate in the governance process.
Moreover, QUSD's innovation of zero seignorage fee does reduce the user's minting cost, but it also leads to the fact that QIAN system has no stable source of profit at present. As a community member said, QIAN, as a stablecoin facility, is not sustainable if it is not profitable. Project development and community governance also need to be tied to the interests of the development team and community members to better drive the forces behind the development of community projects.
New proposal for KUN token allocation
On the occasion of the release of the QIAN V2 White Paper, to better mobilize the initiative of community governance and enable QIAN V2 to obtain more funds and development resources, the development team proposes to divide the token allocation of KUN into the following:
5% owned by the community development team;
25% strategic investment share, introducing external investors, acquiring resources for project development;
50% community development, including governance mining, mining during the launch of QIAN V1, and mining when QIAN V2 is about to be launched.
It is now planned to vote on the above distribution scheme, and the result of the proposal will be discussed and voted on by the community.