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:
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
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
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.
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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