Qubetics continues to progress toward a stronger, more community-driven network with currently 17 active validators and over 600 delegators securing and supporting the chain. A new governance proposal is now live, inviting participants to vote on an adjustment to the current fee distribution framework within the Qubetics network.
A New Approach to Fee Distribution
The proposal currently under vote introduces a revised model for handling transaction fees, aimed at optimizing how network-generated value is utilized.
Under this model, 80% of fees will be redirected into a community pool, creating a sustainable treasury to fund future development, strengthen the ecosystem, and deliver measurable benefits back to participants. The remaining 20% of fees will continue to be burned, preserving a deflationary mechanism that supports the long-term token economy.
The proposed adjustment seeks to balance deflationary economics, ensuring that network activity translates into tangible resources for building and expanding Qubetics.
Cast your vote here - https://native.ticsscan.com/qubetics/gov/5
Understanding the Community Pool
It is important to distinguish between the community pool and the community incentive allocation outlined in the original tokenomics. The community pool functions as a dynamic, on-chain treasury, continuously funded by network activities such as transaction fees, penalties, and redirected revenues.
In contrast, the community incentive allocation is static and fixed, defined at the outset of the tokenomics and not subject to change. While the static allocation remains constant, the community pool is designed to grow over time, providing a flexible, governance-controlled resource to support ecosystem development and future initiatives.
All funds in the pool will be under the control of governance. No spending can occur without an on-chain proposal approved by token holders. This approach ensures transparency and decentralization, giving the community the authority to determine how funds are allocated and utilized.
Possible uses include protocol upgrades, developer grants, ecosystem partnerships, listing initiatives, and marketing efforts—all aimed at driving long-term adoption and strengthening network resilience.
Why This Vote is Critical
This proposal is not just a technical adjustment to fee allocation—it is a strategic decision about the future direction of Qubetics. Redirecting a majority of fees to a community-controlled treasury has several key implications:
- Sustainable Growth: The network gains an ongoing source of funding for development and innovation, reducing reliance on external capital or fixed reserves.
- Long-Term Value for Participants: Fees generated by network activity can be resubmitted to enhance utility, expand adoption, and increase the overall value of participation for validators, delegators, and token holders.
- Balanced Tokenomics: Partial fee burns continue to support scarcity, while the treasury allocation ensures resources are available to fuel ecosystem expansion.
Your vote today determines whether Qubetics continues to burn the majority of its fees or transitions to a more active, growth-oriented approach to managing network value.
Validator and Delegator Participation
Governance in Qubetics is designed to be inclusive. Both validators and delegators play a critical role in this decision-making process.
- Validators: Review the proposal carefully and ensure your vote is submitted within the designated voting period. Validator alignment will be key to implementing this change smoothly.
- Delegators: You have a direct say in how network resources are managed. Participate in the vote to help shape the economic framework that supports your staking rewards and the long-term health of the ecosystem.
A dedicated validator channel has been set up to facilitate discussions and provide real-time updates throughout this governance process: https://t.me/qubeticsvalidators.
Chain Upgrade
This governance proposal is accompanied by a chain upgrade that introduces updated binaries and ensures protocol alignment with the new framework. According to the proposal, the upgrade is scheduled to take place at block height 780,000.
Validators will need to download the new binaries and update their nodes before this block height to remain active. The required binary is available — just follow the steps in the README of the upgrade repo:
Repo: https://github.com/Qubetics/qubetics-upgrade-v1.0.2
Note: Once you’ve voted, update your binaries. The repository includes an automated script — simply run it and you're done. Nodes that are not upgraded on time will be jailed, stopping rewards until the update is completed and the validator rejoins the network.
Please note that if fewer than two-thirds of validators upgrade, the network will fail to reach consensus, causing a chain halt until alignment is restored.
Building a Stronger Future for Qubetics
This live governance vote represents more than a change in protocol parameters—it is a collective decision on how Qubetics evolves. The introduction of a dynamic, DAO-governed community pool provides a mechanism for long-term resource allocation, transparency, and sustainable growth. At the same time, the proposal maintains fee burns to preserve scarcity, balancing both sides of the token economy.
With 17 validators and over 600 delegators now participating in securing the chain, the outcome of this vote will set the foundation for how the network manages its resources moving forward. By casting your vote and ensuring timely node upgrades, you are contributing directly to building a stronger, more resilient Qubetics ecosystem.
Vote now and support the upgrade! Your vote matters for the future of the network. Let’s grow together!
Frequently Asked Questions (FAQ)
1. Which fee streams are covered under this proposal? Does it apply to gas fees, application fees, or all transaction fees?
The proposal encompasses all transaction fees, including gas fees. At present, there are no separate application- or protocol-specific fees implemented on the Qubetics network.
2. What portion of gas fees, if any, will continue to be allocated to validators and delegators?
Originally, 100% of gas fees have been burned. Under the proposed allocation, validators and delegators still won't directly receive any portion of these fees. Instead, 20% will be burned, and 80% will be redirected to the community pool.
3. Will staking rewards continue to be distributed, and are they impacted by this proposal?
Staking rewards are not impacted by this proposal. The network currently operates with 0% inflation, meaning no tokens are minted for rewards. Instead, rewards are drawn from a predefined locked supply, which partially offsets the lack of fee distribution.
4. Is the proposed fee distribution model permanent, or subject to future revision?
The proposed model is not permanent. It may be amended at any time through future on-chain governance proposals. There is no fixed term, phase-out mechanism, or scheduled expiration.
5. How is the community pool governed, and what standards apply to funding decisions?
The community pool is governed through a fully on-chain governance mechanism. Funding proposals must meet a minimum quorum of 33.4% and pass by a simple majority vote. All proposals, voting outcomes, and fund disbursements are public, ensuring full transparency.
6. What are the objectives of the community pool, and are there predefined limits or KPIs?
The community pool is intended to support network development, ecosystem growth, protocol security, and community-led initiatives. There are no fixed quarterly or annual budget caps; each funding request is evaluated independently via governance.
7. What are the short-term implications of this change for validator economics and network stability?
As validators do not currently receive fee-based compensation, short-term economic impact is minimal. Over time, the availability of community-driven funding may enhance network resilience and indirectly improve validator incentives through ecosystem expansion.
8. Does the 20% fee burn apply to all types of transaction fees, and how is it executed?
Yes. The 20% burn applies uniformly to all transaction fees. This is executed via the protocol’s native burn mechanism. While visibility in third-party explorers may be limited, burn events are reflected in the gradual reduction of circulating supply, which can be verified on-chain.
9. Are any alternative fee allocation models under consideration?
At this time, no alternative fee splits are being implemented. However, the community retains full authority to propose and vote on different allocation models in the future, including differentiated structures for gas and protocol fees or revised distribution ratios.
10. What reporting mechanisms will be used to monitor the community pool’s financial activity?
Monthly reports will be published on the community dashboard and governance forum, providing a detailed record of fund inflows, outflows, approved allocations, and measurable outcomes. This structured reporting process ensures continued transparency and accountability in the management of community pool resources.