The policy operations entity can ping the minter to mint new citadel, based on the logic in the SupplySchedule contract. Each mint factors in in the last mint time and the supply schedule to determine how many citadel to mint.
The supply schedule contains a hardcoded approximation of the supply schedule function which is outlined in the tokenomics article.
(This calculation isn't economically efficient to do live on ETH mainnet)
These new tokens are then divided between three destinations, based on the treasury / market cap logic (which is handled off-chain in a trusted manner until a contract can be written and meet sufficient security and efficiency requirements).
Destinations:
- Funding Pools
- Stakers
- Lockers
The amount of citadel going to Funding is further distributed between the various funding pool contracts according to weights which are managed by the policy ops entity. There is a unique funding pool contract for each asset the DAO is interested in (wBTC, CVX, etc).