Quest Mining

Mining, first implemented in Bitcoin, creates an economy completely different from modern capitalism by establishing a direct link between investment in the system and its development.

While high demand for a particular security on the stock market only allows the founders of a company to cash out at a profit or speculators to make money, the high price of cryptocurrency ensures the profitability of mining, attracting new miners who add more value to the system. In the case of Bitcoin, as a result of the BTC price increase, the blockchain becomes more secure.

Here and throughout, we take mining in a more abstract sense than just brute forcing a hash in Proof of Work. By mining we mean tokenomics, where tokens with a limited total supply are periodically issued in decreasing amounts, determined by a pre-defined formula, and distributed to users according to the value they add to the system.

The mining approach has been very successful because it allows newly issued coins to be earned through valuable actions, such as creating a new block in the chain, without having to pay for them. And if we assume that such valuable actions can actually be anything, then the concept of mining fits in perfectly with the quests.

So it's no surprise that Questfall uses mining as its core mechanic, meaning that the system rewards users with a decreasing number of Questfall Tokens (QFT) each week for various quest and infrastructure actions.

The decimal precision in smart contracts allows QFT to be issued for billions of years far beyond the life of the sun.

The quest platform requires different activities to be rewarded, and this creates a problem because there is no way to compare, for example, creating a quest and providing liquidity to the DEX pool.

Therefore, QFT issue is divided into pre-determined proportions between different areas. It can be thought of as different mining pools, each receiving a fixed percentage of the weekly issue and distributing rewards to users based on the comparative value they bring to the system.

In Questfall, 36% of the weekly issue is used to support the infrastructure:

• 1% to buy back and burn Founder NFTs;

• 5% for the Referral Program;

• 5% for the Liquidity Program;

• 5% to reward QFT freezing;

• 5% to cover project expenses;

• 5% to cover Gold withdrawals;

• 10% as founders' revenue.

The remaining 64% of the weekly issue is used to reward quest activity:

• 40% to reward users for quest completion;
• 10% to reward authors for quest creation;
• 14% to seasonal reward pool (11.2% to users and 2.8% to authors).

As the percentage split is fixed, and the QFT issue is determined by the pre-defined formula, the number of tokens allocated to each of these pools can be accurately calculated for any given week.

Mining approach allows to solve many problems that are not solvable otherwise. Such as supporting the infrastructure of the project, unbiased rewards for completing quests, rewards for authors that are appreciated by the community, and so on.

But what's more important, this approach allows to build a system that rewards users based on fixed rules that can't be changed in the future, since the issuance and its distribution will be set in stone in the smart contracts with burned ownership. As a result, QFT will become publicly owned money.

Each QFT token is issued by the system as a reward to users for their valuable actions, and none are pre-minted by the Team.