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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

Month
Emission per Month
Total Emission

1

171,273,600

171,273,600

2

164,422,656

335,696,256

3

157,845,750

493,542,006

4

151,531,920

645,073,926

5

145,470,643

790,544,569

6

139,651,817

930,196,386

7

134,065,745

1,064,262,131

8

128,703,115

1,192,965,246

9

123,554,990

1,316,520,236

10

118,612,791

1,435,133,027

11

113,868,279

1,549,001,306

12

109,313,548

1,658,314,854

13

104,941,006

1,763,255,860

14

100,743,366

1,863,999,226

15

96,713,631

1,960,712,857

16

92,845,086

2,053,557,943

17

89,131,282

2,142,689,225

18

85,566,031

2,228,255,256

19

82,143,390

2,310,398,646

20

78,857,654

2,389,256,300

21

75,703,348

2,464,959,648

22

72,675,214

2,537,634,862

23

69,768,206

2,607,403,068

24

66,977,477

2,674,380,545

25

64,298,378

2,738,678,923

26

61,726,443

2,800,405,366

27

59,257,385

2,859,662,751

28

56,887,090

2,916,549,841

29

54,611,606

2,971,161,447

30

52,427,142

3,023,588,589

31

50,330,056

3,073,918,645

32

48,316,854

3,122,235,500

33

46,384,180

3,168,619,680

34

44,528,813

3,213,148,493

35

42,747,660

3,255,896,153

36

41,037,754

3,296,933,907

37

39,396,244

3,336,330,150

38

37,820,394

3,374,150,544

39

36,307,578

3,410,458,123

40

34,855,275

3,445,313,398

41

33,461,064

3,478,774,462

42

32,122,622

3,510,897,084

43

30,837,717

3,541,734,800

44

29,604,208

3,571,339,008

45

28,420,040

3,599,759,048

46

27,283,238

3,627,042,286

47

26,191,909

3,653,234,194

48

25,144,232

3,678,378,427

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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