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.