# Emission Strategy

## About Emissions

The supply of $ZERO tokens set out for emissions is kept at 20 billion tokens (20% of the supply)

The first six months of $ZERO emissions are inflationary. After six months of TGE, the emissions have become deflationary.

**ZeroLend plans implement a hardcoded 4:1 emissions ratio for borrowing and lending, respectively.** This incentive structure is predicated on the principle that borrowing necessitates collateralized lending; thus, by encouraging borrowing, the platform inherently promotes more lending. 

This strategy is expected to elevate APYs in borrowing and lending pools, augmenting revenue for the company and potentially leading to increased buybacks and emissions.

## Types of Emissions

ZeroLend features two types of emissions as part of its incentive structure:

1. **Primary Emissions**: Rewards specific to assets.
2. **Secondary Emissions**: Rewards distributed in $ZERO tokens.

Our focus here is on **Secondary Emissions** as they are the only emissions affected by $veZERO. 

## Example of Secondary Emissions Distribution

Let's assume ZeroLend plans to distribute 1 million $ZERO tokens as ecosystem incentives. The allocation of these tokens is determined by the $veZERO delegated to each asset. Here's a simplified breakdown:

| Asset  | $veZERO Delegated | Percentage of Total $veZERO | $ZERO Rewards |
| ------ | ----------------- | --------------------------- | ------------- |
| $USDC  | 30M               | 30%                         | 300K          |
| $ETH   | 20M               | 20%                         | 200K          |
| $MANTA | 50M               | 50%                         | 500K          |

In this scenario:

* **$USDC** receives 300,000 $ZERO, as it holds 30% of the total $veZERO delegated.
* **$ETH** is allocated 200,000 $ZERO, corresponding to its 20% share.
* **$MANTA** gets 500,000 $ZERO, being the largest beneficiary with 50% of $veZERO delegation.

This allocation demonstrates how the delegation of $veZERO directly impacts the distribution of secondary emissions, encouraging stakeholders to strategically delegate their tokens to enhance specific assets within the ZeroLend ecosystem