> For the complete documentation index, see [llms.txt](https://protofi.gitbook.io/protofi-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://protofi.gitbook.io/protofi-docs/new-elastic-supply-mechanism/elastic-supply-based-on-marketcap-tvl-ratio.md).

# Quantum Supply

![](/files/-Miv6Tkz2VcC5MQTiJG2)

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%

{% hint style="warning" %}
The Quantum supply is triggered every 3 days but this can also be changed during particular market conditions
{% endhint %}

{% hint style="success" %}
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.
{% endhint %}

![Just a test example](/files/UFGErdDdiUOGqRo5P4Xi)

{% hint style="info" %}

**Examples**:

* **Day 6**: MC/TVL >=10% . Nothing changes, the emission will remain 15 PROTO per block and the multipliers will be the same.<br>
* **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.<br>
* **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%.<br>
* **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.<br>
* **Day 12 - Case 3**: 6 hours average MC/TVL goes to 11%, the MC/TVL target is set at 11%.<br>
  {% endhint %}

{% hint style="danger" %}
The Quantum Supply Mechanism will last for 3 weeks in order to set the emission.\
After this period, the emission will be fixed.
{% endhint %}