Quai Network functions as a friendly Trojan horse. Its core protocol, SOAP, allows miners to earn Quai tokens by mining Bitcoin, Litecoin, or Dogecoin. The network then sells those mined assets to buy and burn Quai, effectively draining value from the older chains to secure its own. Founder Dr. Karl Kreder admits the mechanism breaks the “moat” that has let Bitcoin stagnate.
If Bitcoin remains a simple store of value, Quai aims to absorb its security budget. Kreder argues this forces a Darwinian competition where only chains offering real utility - speed and programmability - survive. The endgame is a trustless bridge moving Bitcoin onto Quai’s faster, programmable base layer.
Quai scales proof-of-work not with Layer 2s but with an elastic sharding system. It automatically spawns new chains when a single shard nears saturation at 700-1,000 transactions per second. Kreder claims this avoids the super-exponential costs of rival architectures like Kaspa.
“It’s a friendly Trojan horse for the existing proof-of-work networks. We can take any of the older proof-of-work networks, merge-mine them, and use that to secure our network.”
- Dr. Karl Kreder, Bitcoin Takeover Podcast
Beyond scaling, Quai launches an attack on centralized finance. It introduces Qi, a private stablecoin pegged to the cost of mining energy. Kreder views tokens like USDT and USDC as tools of a financial panopticon, failing in geopolitical conflict. Qi creates an endogenous monetary system for high-frequency transactions, targeting Global South adoption.
The project lands as Bitcoin miners are already pivoting capital to more profitable AI compute. Quai’s model formalizes that capital diversion, threatening the economic model underpinning Bitcoin’s security. It’s a direct challenge: innovate or see your security budget repurposed by a faster, more functional chain.


