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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. 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. 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. 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. 4.
    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.