Question 1

What is CHEQ?

Accepted Answer

CHEQ is the native token of cheqd Network. The network uses it for governance and for writing DIDs (decentralized identifiers) and associated resources; in digital-credential scenarios, it can also be used for payments related to resource decryption and credential exchange. Therefore, CHEQ is more than an external trading asset: when users or applications create identity resources that need to be written on-chain, CHEQ is part of the connection between that operation and network billing, participation incentives, and governance.

Question 2

How is CHEQ used for identity and credential services?

Accepted Answer

CHEQ can pay fees for identity-resource operations on the network. For example, creating a DID or its associated resources requires CHEQ; credential-use scenarios can also use CHEQ to pay fees related to on-chain resource decryption and credential exchange. These fees connect actions to create, access, or exchange with the use of network resources. They differ from trading fees for buying or selling CHEQ on an exchange and do not mean that holding CHEQ automatically grants access to resources.

Question 3

How does delegated CHEQ staking work?

Accepted Answer

Holders can delegate CHEQ to node operators, placing the tokens in the network's active staking pool. Delegators do not need to run a node themselves, but the size of their delegation is connected to the selected node's network participation, reward distribution, and governance participation. Rewards are not a fixed rate: rewards earned by a node are first affected by its operation and network rules, and node commission then affects the portion actually received by the delegator. Delegation is a method of participation, not a guarantee of returns.

Question 4

How can holders participate in governance through CHEQ?

Accepted Answer

CHEQ network governance is connected to staking participation. Holders can participate in network governance by delegating to node operators; the voting behavior of nodes affects the result of governance participation represented by the delegation. Commission affects reward sharing, while a node's reputation and governance behavior relate to the network-decision participation associated with a delegation. Network parameters may change through governance procedures, and participation does not mean an individual can decide an outcome alone.

Question 5

What are CHEQ's initial issuance and inflation mechanism?

Accepted Answer

CHEQ had an initial supply of 1 billion tokens at the genesis token-generation event. This figure describes the issuance scale at the network's starting point and is not equivalent to total supply, circulating supply, or tradable supply at any later point in time. The network also has inflation to provide block rewards, with documentation listing an annual inflation parameter range of 1% to 4%. Inflation-generated rewards are used to incentivize network participation, but the parameters actually applied may be changed through governance.

Question 6

Why do some CHEQ tokens appear in a wallet but cannot be transferred?

Accepted Answer

Some initial allocations use Cosmos native vesting accounts: tokens may first appear in an account balance but cannot be transferred before the vesting conditions are met. As vesting progresses, the corresponding portion becomes transferable. Therefore, the balance shown in a wallet may differ from the balance that can be sold or transferred at that moment. A vesting arrangement describes when the availability of an existing allocation is released and should not be confused with new rewards created through network inflation.

Question 7

How long after undelegation can CHEQ be used?

Accepted Answer

After undelegation, CHEQ does not immediately return to freely usable status. The network parameters list an unbonding period of 1,209,600 seconds, approximately two weeks; before that period ends, the undelegated tokens have not yet fully exited active staking status. This waiting period distinguishes initiating undelegation from becoming transferable again and available for other uses. This parameter can be adjusted through governance, so actual operations should follow the network rules at the time.

Question 8

Which node factors should be considered when delegating CHEQ?

Accepted Answer

When selecting a node operator, at minimum consider the commission rate, operating reputation, and governance behavior together. Commission is deducted from rewards earned by the node and therefore directly affects the delegator's reward share. In addition, a node participates in the network and governance, and its voting behavior also affects the governance-participation method associated with that delegation. Therefore, a lower commission alone does not establish that a node is better suited to every delegator.

Question 9

Why might CHEQ's circulating supply differ from its initial issuance?

Accepted Answer

CHEQ's initial issuance, the balance displayed in an account, and circulating supply are different measures. Although some initial allocations have entered native vesting accounts, they cannot be transferred before vesting, so whether they are displayed at an address alone cannot determine whether they belong to tradable supply. In addition, the network has inflation rewards. The timing of locks, vesting releases, and reward creation differs, which can cause different calculation methods to produce different circulating-supply figures; when comparing data, it is necessary first to confirm whether transferability is used as the basis of calculation.

Question 10

Why does CHEQ have an inflation mechanism?

Accepted Answer

CHEQ's inflation mechanism provides block rewards, thereby incentivizing node operators and their delegated participants to maintain and participate in the proof-of-stake network. The source of rewards is inflation produced under network rules, rather than a direct transfer from existing holders' balances. Participants may share rewards according to the rules, but supply also changes with the inflation mechanism. The annual inflation parameter range and other network parameters can be adjusted through governance, so parameters or reward levels at a particular time should not be regarded as fixed commitments.

Question 11

What is the relationship between DIDs and CHEQ?

Accepted Answer

A DID is a decentralized identifier that can identify an individual, organization, or other entity without relying on a single central institution. CHEQ can be used to write DIDs and their associated resources to cheqd Network. A DID is identity and resolution infrastructure; it is not equivalent to publicly disclosing all personal information. Its associated resources can serve verifiable-data scenarios. CHEQ performs the token role for network operations and related payments here.

Question 12

What role do node operators play in the CHEQ network?

Accepted Answer

Node operators run cheqd Network infrastructure and participate in network governance. Holders can delegate CHEQ to one or more nodes; ownership of the tokens remains with the holder, but after delegation they enter the active staking pool. A node's performance and commission affect the reward share a delegator may receive, and its governance behavior also affects the participation outcome associated with the delegation. Thus, a node is both a technical operator and a connecting element in the staking and governance mechanism.

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