Conversions
While the election to receive block rewards in Quai or Qi is reserved for miners, the ability to convert Qi and Quai tokens is embedded natively in the protocol, and is available to any network participant to utilize at any time. The conversion ratio is defined by the ratio of the current block reward of both Quai and Qi.
For example, if the current Quai block reward is 1 and the current Qi block reward is 2, any network participant would be able to burn Qi tokens to mint new Quai tokens at a rate of 2:1.
This mechanism allows for greater responsiveness in the supply of Qi, allowing all network participants, not just miners, to participate in the ongoing arbitrage between Qi demand and Qi supply.
The specific conversion mechanism between Qi and Quai has not yet been finalized. This page will continue to be updated as the conversion mechanism is refined.