Quai Network launches SOAP mining mechanism

Foresight News reported, according to The Block, that Quai Network (QUAI) has announced the launch of the SOAP (Subsidized Open-market Acquisition Protocol) mining mechanism, which transforms Proof of Work (PoW) and merged mining into token buybacks to ensure security.

SOAP no longer pays parent-chain rewards directly to miners, but instead routes 100% of the parent-chain coinbase output to a protocol-controlled address. This address immediately converts the parent-chain tokens into QUAI on the open market, then either burns the purchased QUAI or allocates them to time-locked staking rewards. Miners continue to mine according to QUAI’s algorithm (KAWPOW) and earn QUAI as usual. Meanwhile, hardware from the parent chain can submit shares to Quai. These parent-chain blocks will route rewards to the protocol address. The protocol address sells the main chain reward tokens and buys QUAI. The purchased QUAI are either burned or locked for staking reward distribution.