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# System prepended metadata

title: Issuance Economics to POLYGN

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# Issuance Economics to POLYGN

In this research, we conducted comparison between constant emission and square root emission modes. As stated in original POLYGN. The comparison is inspired from sqrt issuance rate of [ethereum basic rewards](https://eth2book.info/bellatrix/part2/incentives/issuance/).

The sqrt issuance curve is defined as
$$APY=\frac{k}{\sqrt{N}}$$ where $N$ is total staked and $k$ is the constant determining the curve. It is decided by validator inflation yield, $x\%$, when the total staked is $S$ in tokens.


![](https://i.imgur.com/VKCL0pT.png)


The inverse of sqrt distribution can incentivize staking while it's low and disincentivize validators when it's opposite. However, no large gap is found in the comparison between scenarios of black curve (constant 1%) and pink curve (3% when 3.3B tokens staked).
