Strategic Emission Adjustment

1 Executive Summary

This proposal initiates the first phase of Vision’s Economic Maturity. We propose a strategic reduction in the targeted annual emission rate from 5% to 2.5%. This shift aims to align incentives with the new market reality, by reducing structural sell pressure.

2 Motivation & Problem Statement

The 5% emission model was designed for a growth market. In the current economic environment, these levels of weekly issuance (~5M VSN) create systemic inflation that outpaces organic demand. To ensure long-term sustainability and improve the VSN tokenomics, a recalibration of the emission model is required.

3 Specification & Strategic Parameters

If the community ratifies this proposal, the following parameters will be updated:

• Emission Scaling: Reduction of weekly VSN issuance by 50%.
• Target Staking Yield: A sustainable equilibrium of ~5% APY for onchain stakers.
• Burn Policy: Commitment to retain minimum 30M VSN per quarter burn throughout 2026.

4 Governance Lifecycle & Quorum

• Status: Active Approval (Requires majority support of participating power).
• Timeline: Voting concludes May 18th.

5 The Voting Ballot

Should the Vision Protocol implement the VIP-1 Emission Adjustment?

• FOR (YES): Confirm the reduction to 2.5% emissions.
• AGAINST (NO): Maintain the current 5% emission rate and inflationary structure.
• ABSTAIN: Signal participation without a directional preference.