Currently Stabilize for Arbitrum has an intended yearly emission rate of approximately 1% from the Emissions Operator. The Emissions Operator receives tokens from the buyback bank. The bank is given bought back STBZ tokens via profit generated from the strategies. Any amount of tokens the Emissions Operator needs above the balance of the bank is minted fresh by the operator.
With a yearly emissions rate of 1%, this allows the protocol to mainly use bought back tokens for new emissions, thus preventing an increase in the total token supply.
At this time, it is postulated that the 1% emission rate is too early for the newly added protocol to Arbitrum. The strategies need sufficient incentives to earn liquidity, which is used to create more revenue for the protocol. In addition, the liquidity pool for STBZ/ETH needs to remain liquid to bring confidence to protocol users who want to buy and sell STBZ.
Due to this, it is proposed to temporarily hike the yearly emissions rate to something more enticing for depositors. All changes would be effective during the next week update and last for at least 1 month.