Liquidity mining Programs & Governance mining

The total amount of KUN tokens is 12 million, which are distributed entirely through liquidity mining. In the first 12 months of QIAN V2’s launch, 10% of the total KUN tokens that is 1,200,000 KUN, will be released to users who support QSD’s liquidity. In addition, in order to incentivize the increase in the proportion of algorithm regulation, as the algorithm regulation ratio increases, up to 300% of the basic release amount of KUN increments will be distributed to users who provide liquidity among the various liquidity pools of QSD according to their respective release rates multiplied by the collateral ratio adjustment factor.

Collateral Ratio Regulating Factor (CRF) is inversely proportional to the proportion of Collateral. When the proportion of collateral decreases and the proportion of algorithm increases, the value of CRF will also increase. The relationship between CRF and the proportion of mortgage is:

$$CRF = 3 × (1 - collateral\ ratio)$$

After QIAN V2 is launched, KUN's governance mining will be activated at a chosen time. According to the community decision, governance mining will set different periods and adjust the release amount of KUN tokens between each period, so as to seek a balance between encouraging users to participate in governance and encouraging the use of QSD.