Modify NEP Distribution for Lucra Protocol

The Modify NEP Distribution poll can be used to submit polls that adjust parameters related to borrower NEP distribution. NEP distribution to borrowers are controlled by 3 parameter values, Borrower Emission Cap, Increment Multiplier, and Decrement Multiplier.

Calibration of the borrower NEP emission rate will be used to control stablecoin borrow demand, which in turn affects the stablecoin deposit rate. The emission rate will be 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 NEP 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 Decrement Multiplier.

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 Floor to allow a minimum baseline of NEP incentives for borrowers.

Parameter Name	Value
Borrower Emission Cap	Maximum per-block NEP emission rate to borrowers
Borrower Emission Floor	Minimum per-block NEP emission rate to borrowers
Increment Multiplier	Emission rate multiplier when increasing NEP emission
Decrement Multiplier	Emission rate multiplier when decreasing NEP emission

Genesis Values

Parameter Name	Value
Borrower Emission Cap	21381363.851572310123647620
Borrower Emission Floor	6893787.950524103374549206
Increment Multiplier	1.127266723782294841
Decrement Multiplier	0.994083359275160

Poll Format

Field	Description	Optionality
Title	Poll title	Required
Proposal Rationale	Short description of poll rationale	Required
External Link	External URL for further information	Optional
Borrower Emission Cap	Proposed maximum per-block ANC emission rate to borrowers	Optional
Borrower Emission Floor	Proposed minimum per-block ANC emission rate to borrowers	Optional
Increment Multiplier	Proposed emission rate multiplier when increasing emission	Optional
Decrement Multiplier	Proposed emission rate multiplier when decreasing emission	Optional