Quai block rewards are proportional to “bits” of difficulty, which can be approximately represented by the number of leading zeros in each hash that “finds” a valid block. Quai has an effectively fixed supply, as inflation trends towards zero over time. BlockRewardQuai∝log2(Difficulty)Block Reward_{Quai} ∝ log_{2}(Difficulty) Qi block rewards are linearly proportional to “hashes” of difficulty, or the expected number of hashes needed to mine a block at the current difficulty. BlockRewardQi∝(Difficulty)Block Reward_{Qi} ∝ (Difficulty) This logarithmic versus linear relationship produces the significant difference between Quai scarcity and Qi expansion. For every doubling (2x) in difficulty or hashes, there is only one added unit (+1) in bits. Over time, this ensures Quai’s scarcity, while Qi is naturally connected to the miner cost of production and thus functions as a loose measure of energy or electricity pricing. Importantly, these block reward functions only define how many Quai/Qi tokens can potentially be emitted. Actual, realized supply emissions from block rewards are determined by the choices miners must make to receive only either Quai or Qi, a selection they may change going forward at any time.
Note that there are proportionality constants/variables in each of the block reward functions provided above. The exact calculus for these constants/variables will be shared publicly closer to Mainnet launch.

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Coinbase Maturity Period

Miners can choose to lock their rewards for extended periods to receive higher yields
Lock DurationYear 1Year 2Year 3Year 4Year 5+
2 weeks*1.000000x1.000000x1.000000x1.000000x1.000000x
3 months1.035000x1.017500x1.008750x1.004375x1.002188x
6 months1.100000x1.050000x1.025000x1.012500x1.006250x
12 months1.250000x1.125000x1.062500x1.031250x1.015625x
*Base maturity period