# Automatic supply handling

The main issue with yield farming is the enormous increase of the supply, which is absorbed by new investors only during the first days.

To solve this equation, we'll use two major approaches :

* By burning very aggressively, as explained in the [next section](https://samuraidefi.gitbook.io/samurai-defi/tokenomics/fees-burns)
* By the use of a progressive emission reduction system

We were inspired by some of the most recent AMMs, which more or less successfully tried this option, but sometimes with too much restraint.

That's why we chose the following parameters for our own implementation :

* Initial emission rate : 1 SMR / block
* 5% emission reduction every 9600 blocks
* Minimum of 0.2 SMR / block reward

All of this mechanism is transparent and automatically handled in our smart contract.
