How Does the Token’s Emission Schedule Distort the MC/TVL Ratio?

The token's emission schedule dictates the rate at which new tokens are released, directly affecting the circulating supply and thus the Market Cap (MC). A high initial emission rate can artificially inflate the MC, making the MC/TVL ratio appear higher than it should be, suggesting overvaluation.

Conversely, a low initial emission rate can suppress the MC, making the ratio appear low. Analysts must normalize the ratio by considering the long-term, fully diluted supply (FDV/TVL).