Emissions Range Adjustment

Gm all

This is the Emissions Adjustment Proposal based on the Report recently shared


Since the launch with the Liquidity Bootstrapping Event (LBE), MIN Tokens have been distributed through Yield Farming in 2 Phases:

  • Bootstrapping Phase (Phase 1): from March 16th to August 13th, 5% of total MIN tokens supply was distributed.
  • Minimax Phase (Phase 2, current): from August 13th until now, this phase transitioned reward incentives to a Dynamic Emissions structure that permits emissions to vary from a minimum of 666,666 MIN per day to a maximum of 1,999,999 MIN per day.

Emissions and DAO Treasury Report Summary

With several months of data since Phase 2 began, a retrospective analysis of how MIN Farming incentives have been distributed was conducted: the Emissions and DAO Treasury Report.

Some of the conclusions in that Report are the following:

  • Minswap’s MIN Emissions are too high currently, even at the low end of the Minimax phase range.

  • Continuing with Dynamic emissions makes sense, even though during the Minimax phase emissions only decreased, there may be times in the future where emissions will need to increase.

  • MIN Emissions are important for overall TVL; when measuring MIN Emissions in ADA (convert the MIN to ADA), we see emissions and TVL are highly positively correlated. It is less obvious for volume, but given higher TVL leads to less slippage, we can assume volume is indirectly affected by emissions as well.

  • A successful Emissions management program needs to be extremely adaptive and dynamic. It should include both the DAO to establish a framework and limits, and an expert group (such a Working Group) to conduct constant analysis and manage emissions on a more regular basis.

  • An Emissions working group should be responsible for analyzing the emissions every 2 weeks for the overall protocol.

Emissions have remained at the lower bound of the range (around 670,609 MIN daily emission) for most of Phase 2.

With several community members having expressed similar ideas in the Minswap Forum (such as here) we believe that it is high time for a restructure of MIN Emissions Management.


There is 3 parts to this Proposal:

  1. Lower the lower Bound of Emissions by 50% - meaning from the current 666,666 MIN per day to 333,333 MIN per day. Be mindful that this is an adjustment to the range of the emissions rate, it does not necessarily mean that the lowest rate will be implemented.

  2. Lower the higher Bound of Emissions by ≈50% - meaning from the current 1,999,999 MIN per day to 1,000,000 MIN per day.

  3. Adjust the Daily MIN Emissions Rate dynamically every 2 weeks - with the maximum weekly change being a 10% variation from last MIN Emissions Rate. A Working Group is to be created (with members who authored the Emissions and DAO Treasury Report) to monitor and decide on the adjustment.


:smiling_face_with_three_hearts: it will be very important vote for the future if minswap.


Why was it chosen not to lower the upper bound as well?

Hi. In the case of the second part, what is going to be the criteria for adjustment? what are the variables that are going to be monitorized?

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That is a good point. Maximum Bound will be adjusted as well. It has been added to the Proposal.

We just need to be mindful that if the emissions rate is decreased too much it will have an effect on the supplied liquidity.

We don’t want to be in a situation where the liquidity dries up and the market becomes overly volatile.

Might be wise to move slowly into these numbers with the possibility to roll back if the market responds poorly. Just don’t want to damage liquidity right as we start considering our positioning for the bull.

I guess my vote depends on when this is going to be implemented. If its right now its probably a no. If we are thinking in 6 to 9 months then I am leaning towards yes.

With only 16.3% of the supply in circulation we can probably afford to allow the protocol to run hot for longer. If the concern is future emissions and sustainability we should consider where the MIN from POL will go. Especially if we allow it to continue to accumulate. Those rewards could be used to generate that future yield in perpetuity