QCK Token Incentives & Liquidity Update

The QCK token listed on Osmosis DEX last week in a QCK:OSMO pool, and today, QCK incentives are live on the pool. QCK incentives have also gone live on the qREGEN:REGEN pool on Osmosis. These changes mean that QCK is now available for the greater Cosmos community, and is actively being traded on Osmosis.

As many users have been asking questions about how QCK was distributed, how they can acquire QCK now, and the utility of QCK, this article will provide a quick recap on the QCK token.

QCK Token Supply Distribution

QCK is new on the market, and the supply is being distributed in several ways.

1. QCK is distributed as incentives on Osmosis qAsset pools (more on this below).
2. QCK was distributed as incentives for Testnet participants, a portion of which became liquid on March 17 (see below).
3. QCK is sent out as airdrops to the communities of chains that onboard onto the protocol, such as this week’s Stargaze airdrop. Each onboarded chain will receive its own airdrop, meaning that the Cosmos Hub & Regen communities will receive an airdrop, and new chains that are on the roadmap will get airdrops after they are added to the protocol.
4. QCK is distributed as staking rewards to users who delegate their tokens to a validator to secure the Quicksilver chain.
5. QCK is available on the Osmosis DEX via the QCK:OSMO pool, where any user can acquire QCK via swapping.

Since QCK token is available in many ways, a user can elect to passively receive QCK through airdrops or by providing liquidity to an incentivized pool, or actively trade the token. Quicksilver is about user sovereignty, and you are free to engage with the QCK token in the way that works best for you.

Liquidity Pool Incentives

QCK incentives are active on several pools on Osmosis DEX, and coming to others soon.

Active QCK Incentives:

• QCK:OSMO: https://app.osmosis.zone/pool/952
• qREGEN:REGEN: https://app.osmosis.zone/pool/948

Active Native Token Incentives:

The following pools are incentivized in the native token (ATOM, STARS). After those incentives are completed, Quicksilver plans to convert to QCK incentives for these pools.

• qATOM:ATOM: https://app.osmosis.zone/pool/944
• qSTARS:STARS: https://app.osmosis.zone/pool/903

QCK Token Genesis Supply Allocation

The genesis allocation of QCK & genesis vesting schedule is as follows:

Information on inflation, including how inflation is set by governance, is located in the previous Medium article.

QCK Token Liquidity

The current circulating supply of QCK is a small percentage of the total supply. Much of the supply is entering the market via ongoing incentives, already staked to secure the chain, or locked in vesting accounts, such as those belonging to the Testnet participants.

A token with a small circulating supply may become illiquid. For example, a large buyer could buy up much of the supply from the pool, making it difficult for smaller traders to acquire the token without losing capital to slippage, including in basic swaps like cashing out rewards.

To help ensure there is an adequate supply of QCK tokens in the QCK:OSMO pool, the liquidity supplied by the Quicksilver Foundation to seed the QCK:OSMO pool on Osmosis DEX is managed by a professional market-making firm. The firm also supplies the OSMO to match the QCK allocation from the Foundation.

Market-making firms are specialized in managing liquidity 24/7 with robust risk management systems to predict and mitigate extreme liquidity events. When the supply of QCK gets low, the market maker adds more QCK to the pool to match the demand for QCK, thus helping to mitigate volatility and reducing slippage fees for traders. This is crucial since the QCK supply unlocks gradually and the initial circulating supply is low. When the market-making program completes, any and all QCK-related rewards incentives will be sent to the community pool.

QCK Token Utility

The QCK token utility is spelled out extensively in our last Medium article. Below is a short summary:

• Participate in Governance — Determine the future of Quicksilver and vote on key metrics, such as incentives distribution and inflation
• Paying Fees — Pay transaction fees on the Quicksilver chain
• Staking — Receive additional QCK as staking rewards for securing the chain, and receive native token revenue distribution in tokens such as ATOM and STARS

What’s Next for QCK

The supply of the QCK token unlocks gradually over time, and the community has governance over incentives distribution and inflation. The QCK token holders own Quicksilver. The community’s voice will set out the path forward for the dissemination of QCK throughout the Cosmos ecosystem.

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*The allocation for future investors is contained in the Foundation multisig.

Quicksilver is the interchain liquid staking protocol for the Cosmos ecosystem and beyond.

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