This screen estimates the miner burn level that removes excess chain buys while preserving the currently observed paired liquidity injection.
Current-flow target
total_flow = liquidity_tao_per_day + chain_buys_tao_per_day
target_burn = 1 - liquidity_tao_per_day / total_flow
If a subnet receives 57 TAO/day as liquidity and 100 TAO/day as chain buys, the first-order target is about 64% burn.
Emission share
emission_weight_i ∝ price_ema_i * (1 - miner_burn_i)
Root proportion is not used in the emission share calculation here. It matters in the liquidity cap.
Liquidity cap
alpha_in_cap = root_proportion * alpha_emission
liquidity_tao_cap ≈ alpha_in_cap * spot_price
chain_buys = max(0, tao_emission - liquidity_tao_cap)
The target is useful when chain buys are mostly captured by sellers/arbitrageurs and miner alpha is external dilution.
Caveats
- Chain buys can raise spot and EMA, which can increase future emissions.
- Persistent price impact argues for lower burn than the first-order target.
- Immediate miner selling argues for higher burn than a no-selling model.
- This is a decision support view, not an execution instruction.