YIP#7 Updated Earthquake emissions (v1 & v2)

With the impending launch of Earthquake v2, this proposal sets out an adjusted emissions mechanism for both Earthquake v1 and v2 vaults.

The monthly emissions budget will be the greater of 66,666.67 Y2K per month (the current emissions as per YIP#4) and 750 Y2K per market and strike.

E.g. if there are 20 weekly markets/strikes per week and 10 monthly markets/strikes per month a budget of max( 66,666.67 , ((4.33*20)+10)*750 ) = 72,495 Y2K would be available per month for vault emissions.

Formulaically, monthly budget would be equal to max( 66,666.67 , (w+m)*750 ), where w is the number of weekly markets per month and m is the number of monthly markets per month.

The Internal Policy team will not necessarily seek to allocate all budgeted Y2K, but rather will seek to maximise the utility of emitted Y2K to the Y2K DAO The budget of Y2K emissions will be on a monthly basis, with any unallocated Y2K rolling over into future months to be used if necessary.

This greater flexibility in terms of emissions will allow for greater capacity to scale and incentivise new vaults and strikes as they are added, with the aim of growing Y2K’s TVL, while also limiting emissions where and when they are driving TVL.

This allocation of tokens will be drawn down on from the liquidity incentives portion of total supply.