Starting from the third day after the launch, the supply will be dependent on the ratio between the Market Cap(MC) of the ProtoFI ecosystem proprietary tokens and the Total value locked (TVL) in the protocol.
The protocol will start by setting a target MC/TVL ratio equal to the value observed after 3days and it will adjust this target time by time.
This means that:
If the 3rd day after farming starts the 6 hours average MC/TVL ratio is higher than the observed ratio (example 10%) then the emission rate will continue to be 15 PROTO/ELCT per block.
If the 6h average MC/TVL ratio is lower than 10% the emission rate will be lowered by 1 and the MC/TVL ratio target will be lowered by 1%
The Quantum supply is triggered every 3 days but this can also be changed during particular market conditions
The change in the emission rate will affect only the non-native farms/pool in order to decrease the selling pressure from non-native farmers and increase the incentive of buying and staking PROTO.
Just a test example
Day 6: MC/TVL >=10% . Nothing changes, the emission will remain 15 PROTO per block and the multipliers will be the same.
Day 9: the 6 hours average MC/TVL <=10% . The emission rate will be decreased to 014 and the next MC/TVL target will be set to 7%. The multipliers will be changed in order to leave unchanged the number of tokens distributed for the native pools and decrease the farming for the native pools.
Day 12 - Case 1: 6 hours average MC/TVL goes a value above or equal to 9%. The emission rate will be increased to 15 again and the non-native multipliers will be adjusted in order to give back the same amount of tokens to the non-native stakers. The MC/TVL target is set at 10%.
Day 12 - Case 2: 6 hours average MC/TVL goes to 6% , the MC/TVL target is set at 6%, the new emission/block at 13.
Day 12 - Case 3: 6 hours average MC/TVL goes to 11%, the MC/TVL target is set at 11%.
The Quantum Supply Mechanism will last for 3 weeks in order to set the emission.
After this period, the emission will be fixed.