error
term tells us how much we should be adjusting the supply to get back to the target ratio. The seconds_per_year
constant smooths the adjustments so that even though we can adjust on a per block basis, it would take approximately a year (all else equal) for the system to get back to the target ratio.initial_ratio
,target_ratio
and throttle
.It’s important to note that all models are imperfect representations of reality but can help to create a better and more robust shared understanding of how we expect the system to behave and make the assumptions we are basing our decisions on more explicit.