4.2 Five Regulation Modules

1. EM (Emissions Manager) | Intelligent Debt Issuance Module

Function: Automatically adjusts daily token issuance based on the protocol's Premium value (market price ÷ floor price).

  • Daily adjustable debt issuance cap

  • Parameters: Base Emission Rate, Minimum Premium, debt multiplier

  • When Premium > minimum threshold, debt issuance is triggered (bond market opens)

  • Uses linear release + Premium indirectly controls issuance speed

Purpose: Control protocol inflation rate, prevent excessive inflation during high premium periods.

2. RBS (Range Bound Stability) | Price Stabilization Module

Establishing intelligent price ranges, safeguarding market order

  • Function: Automatically detects when ARK price deviates from range limits (upper and lower bounds), triggering market intervention mechanisms.

    • When market price < floor price × lower limit → Activate buyback

    • When market price > floor price × upper limit → Activate bond issuance (debt to contract supply)

    • Allows for "stability deviation tolerance" as market buffer

  • Purpose: Maintain market price within a healthy range, prevent drastic fluctuations; strengthen protocol expectation management and trust through price self-discipline mechanisms.

3. YRF (Yield Revenue Feedback) | Revenue Redistribution Module

Channeling protocol revenue back into the system, burning supply, stabilizing value

  • Function: Automatically allocates all revenue generated by the protocol (POL interest, etc.).

    • Portion of revenue used for market buyback of ARK and burning

    • Portion used to enrich the treasury, increasing the floor price

    • Adjustable parameters: Buyback Rate, Burn Allocation, Treasury Injection Ratio

  • Purpose: Introduce "positive cycle" currency burning and revenue feedback logic, reducing inflationary pressure, stabilizing price and protocol fundamentals.

4. MCL (Minting Cap Limit) | Minting Cap Module

Defining minting red lines, defending economic bottom lines

Function:

Real-time monitoring of whether daily token issuance exceeds the treasury asset support range.

When supply approaches or exceeds the minting cap, it automatically restricts issuance and triggers governance alerts.

Purpose:

Prevent asset overextension and uncontrolled inflation due to excessive minting.

Protect protocol credit boundaries, ensuring every ARK token has real reserve backing.

5. RCM (Runway Control Mechanism) | Runway Control Module

Predicting lifecycle, stabilizing protocol rhythm

Function:

Monitors the Rebase Pool balance and token issuance incentives (ROI) for each Epoch.

Automatically calculates sustainable operation days (Runway) for the protocol, and issues policy recommendations to EM and YRF.

Purpose:

Provides early warning when system resources are nearing depletion.

Prevents incentive strategies from excessively depleting protocol lifespan.

Ensures timely entry into the "regeneration cycle" to strengthen capital injection and governance adjustments before resources become insufficient.

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