# 5.2 $qYield — Synthetic Yield Token

$qYield represents a proportional contractual claim on net Vault yield, serving as the primary access point for capital allocators seeking exposure to PQC infrastructure returns without operational complexity.

#### What $qYield Represents

A proportional claim on net distributable Vault revenue:

API fees → minus burn (15%), operator allocation (40%), and protocol fee (5%)\
→ remaining 40% allocated to Vault yield ($qYield holders)

$qYield is strictly a yield-bearing instrument, with no governance rights.

#### Minting and Redemption

* Minted upon USDC/USDT deposits at current Vault NAV
* Redeemable at current NAV
* Large redemptions are subject to withdrawal queues to mitigate bank-run risk (governance adjustable)

#### Value Accrual: Buyback-and-Burn Model

Protocol revenue is used to purchase $qYield from the market and permanently burn it.

* Supply decreases → price appreciation reflects yield
* Selected over rebasing for the following reasons:
  * Compatible with institutional portfolio accounting (price appreciation as yield signal)
  * Deflationary supply narrative is clearer for capital allocators
  * Market depth risk managed via gradual buybacks and DEX liquidity provisioning
  * Potentially favorable capital gains tax treatment in many jurisdictions

#### Regulatory Note

$qYield is structured as a **contractual revenue-sharing instrument**, not an equity security.

Returns are derived from deterministic on-chain revenue routing, not managerial discretion. SPV-based issuance further distances the structure from equity characteristics.

(See Section 7.1 for full compliance analysis.)


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