> For the complete documentation index, see [llms.txt](https://docs.reflexer.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.reflexer.finance/system-contracts/automation-module/esm-threshold-setter.md).

# ESM Threshold Setter

## 1. Summary <a href="#id-1-introduction-summary" id="id-1-introduction-summary"></a>

The `ESMThresholdSetter` is meant to recompute the `threshold` of protocol tokens needed to burn and trigger settlement through the `ESM`.

## 2. Contract Variables & Functions <a href="#id-2-contract-details" id="id-2-contract-details"></a>

**Variables**

* `authorizedAccounts[usr: address]` - addresses allowed to call `modifyParameters()` and `disableContract()`.
* `minAmountToBurn` - the minimum amount of protocol tokens that must be burned to trigger settlement using the ESM
* `supplyPercentageToBurn` - the percentage of outstanding protocol tokens to burn in order to trigger settlement using the ESM
* `protocolToken` - The address of the protocol token
* `esm` - the address of the ESM contract

**Functions**

* `modifyParameters` - modify contract parameters
* `recomputeThreshold` - calculate and set a new protocol token threshold in the ESM

**Modifiers**

* `isAuthorized` - checks whether an address is part of `authorizedAddresses` (and thus can call authed functions).

**Events**

* `AddAuthorization` - emitted when a new address becomes authorized. Contains:
  * `account` - the new authorized account
* `RemoveAuthorization` - emitted when an address is de-authorized. Contains:
  * `account` - the address that was de-authorized
* `ModifyParameters` - emitted when a parameter is updated.

## 3. Walkthrough <a href="#id-2-contract-details" id="id-2-contract-details"></a>

`recomputeThreshold` can be called any time in order to recompute the threshold inside the `esm`. The computed threshold must be higher than or equal to `minAmountToBurn` and it should be a specific percentage of the outstanding supply of protocol tokens.


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