System governance

1. System participants

Key participants in the QIAN system consist of QIAN stablecoins minters, QIAN stablecoins holders and governance token KUN holders. The purpose of system governance is to balance the benefits of all participants and, based on certain trade-offs, to maintain system stability and continuous healthy development.

Primary risk of QIAN stablecoins’ minter in the system is the risk of redemptions resulting from a fall in the price of reserve assets and the contrast is frozen. The benefits which the minter enjoys include access to liquidity, value storage, risk hedging, and other features. Based on a study of similar projects in the industry, we believe that, within a reasonable range of risk, QIAN stablecoins' minting should be encouraged, which is conducive to the development of the QIAN system, so we have designed an adjustable interest rate mechanism.

The core demand of QIAN stablecoins holders is the stability of QIAN stablecoins’ face values, so we design a value stability adjustment mechanism.

2. KUN governance token

The KUN holders will be the final revenue or risk bearer for the entire QIAN system, the management of the system is determined by vote among the KUN holders.

The total number of KUN is 12 million, all KUN tokens will be distributed to QIAN system participants through yield farming, liquidity mining, governance lock-in and other specific forms. KUN tokens are 100% belong to the community, there are no team reserve, no private funding, no pre-mining.

The exact distribution scheme of KUN will be developed by the QIAN stablecoin governance committee and published on the QIAN official website and governance forum. If it is necessary to adjust the KUN distribution scheme during the development of the project, this can be done by voting.

3. Governance voting

Proposals approved by voting can modify the internal management variables of the QIAN platform, which include, but are not limited to:

  • Addition of new reserve assets

  • Choosing trusted oracles

  • Adjusting interest

  • Adjusting flash loan rate

  • Risk parameters: debt ceiling for each reserve asset, initial guarantee ratio, redeemable limit, alarm line, etc.

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