Why do we need such high SPELL emissions? What am I missing?

I may be missing the completely obvious, so please bear with me, but why are we emitting so much SPELL? Isn’t it really MIM’s growth and velocity that we are concerned with?

What is the protocol (or those of us with sizable SPELL positions) actually getting from all of these emissions (besides the yield from staking/pooling/farming ourselves)?

If MIM has scale and velocity and is generating fees that are then being applied to sSPELL by buying SPELL, why are we even bothering to pump out so much SPELL?

Hope I’m missing something obvious, because as far as I can tell it’s MIM that needs to spread far and wide, and if successful in generating fees, us SPELL holders would benefit from far less dilution on a daily and weekly basis.


I guess to encourage people to stake spells, as higher emission rate in first year, the market price will be low and staking will compound more. As I understand, emission rate reduces substantially after first year, maybe in a nonlinear fashion , but this I’m not sure. Plus spells are supposed to incentivize people to adopt MIM and provide liquidity to MIM pools.

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