In BIP-24, the community opted to mandate the treasury to seed $300k into various gauges and wait for an emissions control gauge instead of immediately starting emissions. The emissions control gauge will burn any emissions sent to it.
Proposed treasury gauge seed amounts:
We must also decide how guardians should implement the gauge. A trustless gauge would need extensive testing before guardians are confident it would be safe to use. So that emissions can start, we propose a manually controlled gauge following a simple formula based on the TVL of all gauges.
TVL: Total value locked in the gauges
Target: The TVL at which the emissions gauge is set to 0
(Target - TVL) / (Target / 100)
A $2m initial target is proposed. This will have the effect of capping BAO emissions per $1 of TVL when TVL is below $2m and leave emissions uncapped when TVL is above $2m
To help attract maximum liquidity, we will leave the emissions control gauge set to 0 for the first voting period (10 days).
After the first 10 days and each following voting period, guardians will set the weight of the emissions control gauge for the next voting period based on the above formula. For example, if the Gauge TVL is $1m, the gauge would be set to 50% for the next voting period.
As time passes, we can adapt the “target” if needed, although the hope is the emissions gauge is soon set to 0, and all emissions can go to the public gauges.
If approved, the start of emissions will be announced as soon as possible.