Liquid Mining Tokens

Liquid Mining Rewards (LMTs) are tokenized representations of locked mining rewards on the Quai network.

Miners receive LMTs when they lock their coinbase rewards for fixed durations, providing instant liquidity and enabling traders to participate in the energy-backed bond market.

This structured approach allows miners to choose lockup durations that align with their operational needs while maximizing returns. The available options are:

Lock Duration	Block Reward Token Multiple
2 weeks *	1.000 (0%)
3 months	1.035 (3.5%)
6 months	1.100 (10%)
12 months	1.250 (25%)

• Miner rewards are spendable after a cooldown lock period of ~ two weeks, a similar mechanic as found in other PoW systems (e.g. in Bitcoin, coinbase transactions are only spendable after 100 blocks).

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Why LMTs Matter?

• Capital Efficiency for Miners: Miners can unlock value without compromising liquidity or waiting for long maturity periods.

• DeFi Integration: LMTs enable the creation of a decentralized bond market and can be used in lending, bundling, or collateralization strategies.

• Improved Security: The locking mechanism disincentivizes adversarial behavior and creates a capital moat, similar to the sunk costs of ASIC hardware but without high entry barriers.

• Accessible Yield Instruments: Traders can access novel energy-backed yield instruments and contribute to a secure and sustainable ecosystem.

This innovative model not only transforms mining revenue streams but also lays the groundwork for advanced DeFi products on Quai Network, unlocking new potential for both miners and traders.