Emissions should be adjusted when they begin to distort market structure rather than strengthen it.

Key signals include:

• Rewards materially exceeding organic demand, resulting in consistent sell pressure.
• Declining retention - participants farming incentives and exiting immediately.
• Weak correlation between emissions and real ecosystem growth.
• Rising circulating supply outpacing depth of liquidity and buyer capacity.

Emissions are effective when they catalyze adoption, secure infrastructure, or deepen liquidity in a measurable way. If they primarily inflate volume or TVL without durable participation, the program is likely miscalibrated.

Adjustments should be communicated transparently and tied to predefined metrics where possible. Incentives work best when they are responsive to performance — not static regardless of outcome.