Modify ANC Distribution
The Modify ANC Distribution poll can be used to submit polls that adjust parameters related to borrower ANC distribution. ANC distribution to borrowers are controlled by 3 parameter values,
Borrower Emission Cap,
Increment Multiplier, and
Calibration of the borrower ANC emission rate is used to control stablecoin borrow demand, which in turn affects the stablecoin deposit rate. The emission rate is adjusted based on the relation between the current deposit rate and the target deposit rate.
If the current deposit rate is calculated to be below the target, the borrower ANC emission rate is increased by a factor of
Increment Multiplier. Otherwise, if the current deposit rate is above the target, the emission rate decreases by a factor of
To prevent the emission rate from spiking and having an excessively high rate, the emission rate is capped to the
Borrower Emission Cap. The emission rate also has a minimum rate of
Borrower Emission Floorto allow a minimum baseline of ANC incentives for borrowers.