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Token Utility

QSN serves multiple roles within the QsnDEX ecosystem, aligning holder incentives with the long-term health of the protocol.

Staking​

QSN holders can stake their tokens in the QsnStakeVault contract to earn a share of protocol revenue. Staking rewards are distributed in WETH, sourced from trading fees collected across all QsnDEX pools. The reward mechanism follows a time-weighted distribution model, ensuring fair allocation proportional to each staker's contribution and duration.

For full details on the staking mechanism, see the Staking Contracts documentation.

Governance​

QSN implements the ERC20Votes standard, granting holders on-chain voting power proportional to their token balance. To participate in governance:

  1. Hold QSN tokens.
  2. Delegate voting power to yourself or a representative address.
  3. Vote on protocol proposals.

Voting power snapshots are taken at proposal creation, preventing flash-loan-based governance attacks. Delegation is required to activate voting weight -- simply holding tokens does not confer voting power until delegation is set.

Fee Sharing​

Protocol revenue flows from trading activity through the FeeCollector contract and into the StakeVault. This creates a direct connection between protocol usage and staker returns:

  • Trading fees are accumulated in each pool pair.
  • The FeeCollector skims excess reserves and converts them to WETH.
  • WETH rewards are distributed to QSN stakers proportionally.

This mechanism ensures that QSN stakers benefit from the overall growth and activity of the DEX.

Launchpad Participation​

QSN holdings determine participation tiers in token launches conducted through the QsnLaunchpad contract. Higher QSN balances grant access to larger allocations in fair launch events. This provides additional demand-side utility for the token beyond staking and governance.