Qubic Launches Smart Contracts With Built-In Token Burns

Qubic, a high-performance layer-1 blockchain known for its focus on decentralized AI and useful proof-of-work, has rolled out a major upgrade to its smart contract system. The model recently went live on mainnet, introducing self-sustaining smart contracts that cover their own computational costs through a built-in token burn mechanism.

The change, disclosed via an official X post, marks a step toward a more utility-driven, self-sustaining blockchain economy. It directly aligns costs with actual network usage and could enhance adoption by encouraging developers to adopt efficient programming practices.

Qubic’s Deflationary Tokenomics

At the heart of Qubic’s innovation is a prepaid reserve system that makes smart contracts largely autonomous. Each contract maintains two distinct balances: one unrestricted operational balance for general use, and a dedicated execution fee reserve that funds runtime computations. 

Developers or users fund this reserve initially, often through burns at deployment or via later contributions, and the network deducts fees directly from it during executions. In context, when a smart contract runs, Qubic’s 676 validators measure the actual runtime in a decentralized manner.

Additionally, the system collects timing data from all nodes, sorts the results, and applies the two-thirds percentile to calculate the fair fee, preventing manipulation by any single participant. Once consensus is achieved, the corresponding amount is burned from the reserve, permanently reducing the circulating supply of QUBIC.

Notably, if reserves are depleted, the contract enters a dormant state but remains capable of accepting incoming funds and processing automatic refunds for failed calls. To keep things running, replenishment options include internal burning functions, targeted burns to specific contracts, or external contributions via protocol utilities. 

What it Means for Developers

The update places greater responsibility on developers to ensure the long-term viability of contracts. Qubic has provided a dedicated dashboard that now allows real-time monitoring of reserve levels, helping prevent unexpected execution failures when funds run short. 

Code efficiency has become important: longer runtimes translate to higher fees and faster reserve depletion, so optimized logic directly reduces costs and extends a contract’s active lifespan. To handle edge cases, developers would incorporate robust error handling, such as graceful fallbacks when invoking other contracts with insufficient reserves.

The protocol fosters community support for popular contracts. By shifting from validator rewards to pure burns, Qubic ensures that increased smart contract activity fuels sustainable deflation, potentially boosting token value as the ecosystem grows. Overall, the fee structure promotes disciplined, efficient programming from the start.

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