QiDao (QI): Uses, Supply and Risks

QiDao (QI) is the governance token of the QiDao Protocol, a multi-chain borrowing protocol that uses crypto collateral and collateralized debt positions (CDPs). QiDao is intended for people who want to borrow stablecoins against crypto holdings rather than sell those holdings. The protocol describes its borrowing as carrying 0% interest; that does not mean borrowing is risk-free or that every cost is zero. Users should check current collateral rules, fees, and liquidation conditions before using a CDP.

QI is not the stablecoin borrowed through the protocol and is not itself a claim on a borrower’s collateral. Its stated role is protocol governance. QiDao is listed as issuing QI on Ethereum and Base, rather than having QI as the native token of a separate blockchain. The ticker QI is also used by other crypto projects, so identify the QiDao token and its network carefully when researching or handling it.

QI holders can take part in decisions about changes to the QiDao Protocol, but they must stake QI to receive xQi, the form used for voting. The protocol says that anyone—not only existing QI holders—can submit a proposal for a vote. Holding QI by itself therefore does not necessarily give a holder direct voting power; the stated voting process uses xQi.

Governance also covers how Treasury funds are distributed to infrastructure needs and services. The Treasury is described as receiving revenue from closing fees and other income streams. The governance mechanism is intended to be flexible and upgradeable, so the process and the decisions made through it may change. Voting gives participants a way to influence protocol decisions, but it does not guarantee that a proposal will pass, that funds will be used as a particular holder expects, or that the protocol will remain unchanged.

QI has a maximum supply of 200 million tokens. The figures available for this explainer list total supply at 200 million and circulating supply at about 138.35 million. Circulating supply is the portion reported as in circulation; it is not the same as the maximum amount that may exist. Supply figures can change, so treat these as a dated snapshot rather than a permanent measure.

The token is issued on Ethereum and Base. These are separate networks, and a token sent using the wrong network may not arrive in a wallet or service that supports it. Confirm the network and token identity before receiving or transferring QI. No token price or market value is needed to understand its stated function: its main described role is governance through xQi, while QiDao’s borrowing activity is based on collateralized positions.

QI’s risks include the uncertainty of governance decisions and the technical and financial risks of the protocol it governs. A vote may lead to changes that holders disagree with, and the value or usefulness of a governance token can be affected by participation, protocol activity, and market conditions. Staking QI to form xQi for voting also means following the protocol’s staking and unstaking rules; check those rules before committing tokens.

QiDao CDPs carry separate risks. If collateral falls in value or a position no longer meets protocol requirements, liquidation may be possible. The stated 0% interest rate does not remove collateral, liquidation, smart-contract, stablecoin, or network risks. Ethereum and Base transactions also depend on the correct network and wallet setup. These risks can result in loss of funds, and governance participation does not protect a user from them.

QI can generally be held in a wallet that supports the relevant Ethereum or Base token, but users should verify that the wallet supports the specific network and token contract they intend to use. Do not rely on the ticker alone: QI is a short symbol used by more than one crypto project. Confirm that a wallet or exchange identifies the asset as QiDao and that deposits and withdrawals use the same supported network.

For self-custody, protect the wallet’s recovery phrase offline and never share it with anyone claiming to provide support. A hardware wallet may reduce exposure of signing keys, but it does not prevent mistakes such as sending tokens on an unsupported network or approving a harmful transaction. If using a custodian, review its network support and withdrawal terms. This is general information, not a recommendation to buy, sell, stake, or borrow.