What is Quai Network (QUAI)?

Quick Facts

  • Type: Layer-1 Proof-of-Work blockchain
  • Consensus: Proof-of-Entropy-Minima (PoEM)
  • Architecture: Hierarchical multi-chain (sharded)
  • Tokens: Dual-token system — QUAI and QI
  • EVM Compatible: Yes, supports existing Ethereum dApps
  • Throughput: Scales up to 50,000 TPS
  • Founders: Alan Orwick, Karl Kreder, Sriram Vishwanath

Introduction

Quai Network is a Layer-1 blockchain built to solve the blockchain trilemma — achieving scalability, security, and decentralization simultaneously. Unlike most modern blockchains that have moved to Proof-of-Stake, Quai doubles down on Proof-of-Work, evolving it into a more scalable form.

Its native token, QUAI, powers smart contracts, decentralized applications, and value transfers across the network.

History & Background

Quai Network was co-founded by Alan Orwick, Karl Kreder, and Sriram Vishwanath, all of whom had prior experience at the University of Texas at Austin and Dominant Strategies — a blockchain company focused on PoW scaling solutions. The project emerged from research into how Proof-of-Work could be restructured to meet modern scalability demands.

How Quai Network Works

Quai uses a hierarchical multi-chain architecture made up of three chain levels:

  • Prime Chain — the base security layer, producing one block roughly every 15 minutes
  • Region Chains — mid-tier chains with faster block times (~5 minutes each)
  • Zone Chains — the fastest layer, handling most user transactions

All chains are braided together through merged mining, meaning miners simultaneously secure all three chain levels. A novel consensus mechanism called Proof-of-Entropy-Minima (PoEM) coordinates the network, replacing the traditional longest-chain rule with an entropy-based approach.

Quai also supports parallel transaction execution, requiring transactions to declare an access list upfront, allowing non-overlapping transactions to run simultaneously — a major throughput boost over standard EVM chains.

Tokenomics

Quai Network uses a dual-token model to separate the functions of money:

  • QUAI — lives on the EVM-compatible account-based ledger. Designed as a deflationary store of value, it powers smart contracts and dApps. A built-in mechanism called SOAP converts mining rewards into continuous QUAI buybacks and burns, creating a structural supply sink.
  • QI — lives on a UTXO ledger and functions as an energy-backed currency for everyday transactions. Its value is pegged to the cost of energy production.

Together, the two tokens aim to deliver all three properties of sound money: store of value, medium of exchange, and unit of account.

Circulating supply ? 782.48 million QUAI
Total supply ? 3.00 billion QUAI
Max supply ? -- QUAI
Updated 6mo ago

Ecosystem & Use Cases

Because Quai is fully EVM-compatible, developers can port existing Ethereum dApps directly onto the network. Use cases include DeFi protocols, decentralized applications, and peer-to-peer value transfers. The network targets fees under $0.01 and aims to auto-expand capacity with demand.

Team, Governance & Community

Governance is open and permissionless — anyone can participate by running a node or miner. With participants distributed globally, no single party controls the network. The founding team brings deep backgrounds in PoW research and blockchain infrastructure development.

Advantages

  • Scalable PoW — merged mining across shards delivers high throughput without sacrificing decentralization
  • Dual-token design — separates value storage from everyday transacting
  • EVM compatibility — easy onboarding for Ethereum developers
  • Ultra-low fees — targets sub-$0.01 transaction costs at scale
  • Parallel execution — non-overlapping transactions run simultaneously for speed

Risks & Challenges

  • PoW competition — competing for mining hardware and hashrate in a market dominated by Bitcoin
  • Complex architecture — a three-tier chain structure introduces coordination complexity
  • Adoption uncertainty — a new Layer-1 must attract developers and users in a crowded ecosystem
  • Dual-token dynamics — managing two tokens with different economic properties adds systemic risk

Long-Term Vision

Quai Network envisions becoming a new global monetary system — one that is decentralized, energy-backed, and scalable enough for worldwide adoption. By combining a deflationary store of value (QUAI) with an energy-pegged transactional currency (QI), the project aims to deliver the first truly complete decentralized monetary system, all secured by an evolved form of Proof-of-Work.

Frequently Asked Questions

Quai Network is a Layer-1 Proof-of-Work blockchain that uses a hierarchical multi-chain architecture to achieve high scalability, security, and decentralization simultaneously. It is also EVM-compatible, allowing Ethereum developers to deploy existing applications on the network.

QUAI is the primary utility token of the network, used to pay transaction fees, power smart contracts, and interact with decentralized applications. It is designed as a deflationary store of value on the EVM-compatible ledger.

QUAI is a store-of-value token on the account-based EVM ledger, while QI is an energy-backed currency on the UTXO ledger intended for everyday transactions. Together they are designed to provide all three functions of sound money.

Quai uses Proof-of-Entropy-Minima (PoEM), a novel Proof-of-Work consensus mechanism that replaces the traditional longest-chain rule with an entropy-based selection approach. Miners simultaneously secure all chain levels through merged mining.

Quai scales through a three-tier hierarchy of Prime, Region, and Zone chains operating in parallel, combined with parallel transaction execution. The network is designed to auto-expand capacity and can target throughput of up to 50,000 TPS.

Quai Network was co-founded by Alan Orwick, Karl Kreder, and Sriram Vishwanath, all of whom had prior experience at the University of Texas at Austin and at Dominant Strategies, a blockchain company focused on PoW scaling.

SOAP is a built-in mechanism that converts merged-mining rewards into continuous QUAI buybacks, with 100% of purchased QUAI being burned. This creates a structural deflationary pressure on the QUAI token supply over time.

Yes, Quai Network is fully EVM-compatible, meaning developers can deploy existing Ethereum-based smart contracts and dApps on the network with minimal modification.