Emissions

Our token emission model prioritizes price appreciation by employing an exponential decay model for token distribution. This approach encourages early adoption and fosters scarcity as the emission rate declines more rapidly over time.

To understand the calculations behind our emission schedule, follow these steps:

  1. Determine the initial emission rate: We assumed an initial monthly emission rate of 4.63% based on the total token supply of 37 million tokens. Initial Emission Rate = 0.0463 * 37,000,000 = 1,718,400 tokens

  2. Calculate the total tokens to be emitted in 48 months: The total tokens emitted over the 48-month period should equal the total token supply of 37 million tokens. Total Tokens = 37,000,000 tokens

  3. Calculate the decay rate: To determine the decay rate, we needed to find a value that ensures the sum of all emissions over 48 months is equal to the total token supply. In the exponential decay model, the sum can be calculated using the following formula: Total Tokens = Initial Emission Rate * (1 - r^48) / (1 - r)

Here, 'r' represents the decay rate.

To find the optimal decay rate, numerical methods such as the bisection method or the Newton-Raphson method can be used. For simplicity, we assumed a decay rate of 0.963 in our example.

  1. Create the emission schedule: We created the emission schedule by multiplying the emission rate of the previous month by the decay rate. This approach results in a decreasing monthly emission over the 48-month period, incentivizing early adoption and creating scarcity in the market.

We chose the exponential decay model because it aligns with our primary goal of price appreciation. By frontloading token distribution, we can attract early adopters who benefit from the higher initial emission rate. As the emission rate decreases over time, scarcity is created, which can positively impact token value. This model fosters a robust token economy, aligning with the long-term goals of our project.

Month
Emission Amount (Tokens)
Cumulative Emissions (Tokens)

1

1,718,400

1,718,400

2

1,649,664

3,368,064

3

1,583,677.44

4,951,741.44

4

1,520,330.342

6,472,071.762

5

1,459,517.129

7,931,588.891

6

1,401,136.444

9,332,725.335

7

1,345,090.986

10,677,816.321

8

1,291,287.346

11,969,103.667

9

1,239,635.853

13,208,739.52

10

1,190,050.418

14,398,789.938

11

1,142,448.402

15,541,238.34

12

1,096,750.466

16,637,988.806

13

1,052,880.447

17,690,869.253

14

1,010,765.229

18,701,634.482

15

970,334.62

19,671,969.102

16

931,521.2352

20,603,490.337

17

894,260.3857

21,497,750.723

18

858,489.9703

22,356,240.693

19

824,150.3715

23,180,391.064

20

791,184.3566

23,971,575.421

21

759,536.9824

24,731,112.403

22

729,155.5031

25,460,267.906

23

699,989.283

26,160,257.189

24

671,989.7116

26,832,246.901

25

645,110.1232

27,477,357.024

26

619,305.7182

28,096,662.742

27

594,533.4895

28,691,196.231

28

570,752.1499

29,261,948.381

29

547,922.0639

29,809,870.444

30

526,005.1814

30,335,875.625

31

504,964.9741

30,840,840.599

32

484,766.3752

31,325,606.974

33

465,375.7202

31,790,982.694

34

446,760.6913

32,237,743.385

35

428,890.2637

32,666,633.649

36

411,734.6531

33,078,368.302

37

395,265.267

33,473,633.569

38

379,454.6563

33,853,088.225

39

364,276.4701

34,217,364.695

40

349,705.4113

34,567,070.106

41

335,717.1948

34,902,787.301

42

322,288.507

35,225,075.808

43

309,396.9668

35,534,472.775

44

297,021.0881

35,831,493.863

45

285,140.2446

36,116,634.108

46

273,734.6348

36,390,368.742

47

262,785.2494

36,653,154.992

48

252,273.8394

36,905,428.831

This emission schedule assumes a decay rate of 0.963, which results in decreasing monthly emissions, rewarding early adopters, and fostering token scarcity over the 48-month period.

We would like to emphasize that the emissions outlined above serve as a reference for our initial plans. We reserve the right to adjust these emissions if we deem it necessary for the improvement and sustainability of the Basilisk protocol. Once our governance system is fully implemented, the control over emissions and other crucial aspects of the protocol will be handed over to the community. This decentralized approach ensures that the future development and growth of Basilisk will be shaped by the collective wisdom and interests of its users, fostering a truly democratic and adaptive ecosystem.

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