# Emissions

PulseLend's token emission model is designed with a focus on price appreciation by applying an exponential decay model for token distribution. This methodology promotes early adoption and creates a sense of scarcity as the emission rate diminishes more rapidly with time. Here's how the emission schedule calculations are formulated:

**Determine the Initial Emission Rate:**We considered an initial monthly emission rate of 4.63%, based on the total token supply of 3.7 billion tokens. Thus, the Initial Emission Rate is calculated as: 0.0463 * 3,700,000,000 = 171,410,000 tokens.**Calculate the Total Tokens to be Emitted in 48 Months:**Over a period of 48 months, the total tokens emitted should be almost equal to the total token supply of 3.7 billion tokens.**Determine the Decay Rate:**The decay rate is identified by finding a value that ensures the total of all emissions over 48 months equals the total token supply. In an exponential decay model, this total can be calculated using this formula: Total Tokens = Initial Emission Rate * (1 - r^48) / (1 - r), where 'r' is the decay rate. Numerical methods such as the bisection method or the Newton-Raphson method can be employed to find the optimal decay rate. For simplicity's sake, we assumed a decay rate of 0.963 in our model.**Formulate the Emission Schedule:**The emission schedule is formed by multiplying the previous month's emission rate by the decay rate. This method results in a declining monthly emission over the 48-month period, thus encouraging early adoption and establishing scarcity in the market.

We adopted the exponential decay model because it aligns with our primary objective of price appreciation. By frontloading token distribution, we can draw early adopters who benefit from the higher initial emission rate. As the emission rate decreases over time, scarcity is induced, which can positively affect the token value. This model encourages a robust token economy, aligning with PulseLend's long-term project goals.

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.

Finally we do have a leftover of 21,621,573 tokens that we are planning on using for different events that will be boosting emissions.

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