@n3275k

Balance is achieved by framing it as an optimization problem: minimize token emissions subject to maintaining a target level of stake for security. First, quantify the security need (e.g., stake should be 3x TVS). Second, model how stake quantity and quality respond to changes in the risk-adjusted reward (multiplier minus expected slashing loss). Third, find the equilibrium where the marginal cost of emitting one more token equals the marginal benefit of the additional security it purchases. Utilize dynamic multipliers that increase only when stake falls below target and decrease when it's above. This iterative calibration ensures adequate security without excessive inflation.

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