berachain

DeFi

I ended up digging into this. nfa dyor (I am a holder of qia).

Finance is just swaps of time and/or risk, so it appears QIA is a token that is a "perpetual time swap" of BGT emissions.

Link to BGT emissions vault: https://hub.berachain.com/vaults/0x999008608dcf23d5dca29b3c863d4353f61de243/

So the team is currently earning around $1M per year of BGT rewards, and will buy back and burn $QIA. This is the time swap idea. Present value of $1M a year in cashflows for 20 years? $2.6M. Current Market Cap? $3.6M. The current value of $QIA isn't exactly wrong here since it's within range, but why is it more than the present value?

The key here is as the market cap increases, the reward vault will drive more BGT emissions to the vault, so the market is pricing in future increased BGT emissions, hence the perpetual part.

If you want a clean way to get buy a future on BGT emission rewards for an indefinite time period, this seems like a good way to do it actually.

nfa dyor but $QIA is really underpriced considering Kodiak is seriously making an effort to reward the buyback and burn vault.