# Singularity Overview

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Loop is a **fixed-supply, hyper-deflationary, auction-based protocol** built on **Nova**, using **Ethereum as its sole minting input**. All ETH entering Loop is routed into deterministic buy pressure, permanent burns, and perpetual auctions, driving increasing scarcity and value across the Horizon protocol.

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## **Token Distribution**

The entire supply of tokens is minted with Ethereum within the first 10 days, with no additional tokens created afterward. This front loaded issuance model makes Loop hyper-deflationary from inception.

#### **Loop Token Distribution:**

* **Max Supply:** 1,000,000,000 tokens
* **Starting Liquidity:** 5 million tokens paired with Nova in the initial liquidity pool.
* **Stage 1 (Days 1-10):** 100 million Loop tokens auctioned daily.
* **Stage 2 (Day 11 onward):** All auctioned tokens come from "The Loop".
* **The Loop**: 0 tokens sent directly to **Loop** for use on day 11 onwards.
* **Daily Auctions:** Loop tokens are acquired via daily auctions using Ethereum. Duration for each auction day will be 24 hrs.

**Daily Auction Claiming:** All tokens from daily auctions are distributed simultaneously at the start of each new day. This ensures clear price comparisons and potential arbitrage opportunities between auction tokens and liquidity pool prices.

#### LP Formation: <a href="#lp-formation" id="lp-formation"></a>

* The LP is formed when the first $5000 comes into auctions, it is then paired with 5 million Loop Tokens
* The main LP pair will be Loop/Nova

#### **Overview:** Treasury fuels Loop's perpetual auction with a deflationary token model.

**The Treasury**

* **Source:** After the initial 10 days, it becomes the exclusive source for auction tokens.
* **Starting Supply:** 288 million tokens.
* **Daily Auction:** 8% of tokens auctioned daily post-Day 10.
* **Token Entry:** Tokens are introduced through Loop's Buy and Burn mechanism.
* **Recycling:** 50% of tokens from the liquidity pool through Buy and Burn are directed to **The Treasury.**

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### Loop Buy & Burn Mechanism

### Loop Buy & Burn Flow

#### ETH Allocation

All ETH entering the protocol is deterministically allocated:

* **97%** is used to **purchase TitanX**
* **3%** is transferred to the **Genesis**

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#### TitanX Processing

From purchased TitanX:

* **97%** is used to **purchase Nova**
* **3%** is **permanently burned**

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#### Nova Deployment

From **purchased Nova**:

* **64%** is allocated to the **Loop Buy & Burn**
* **28%** is allocated to the **Loop Buy & Build**
  * This Nova is paired with Loop and deployed into the **Loop/Nova farm** within Horizon
* **8%** is **permanently burned**

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#### Loop Buy & Burn Execution

* **Nova farm rewards** are used to purchase **Loop** from the open market
* Purchased Loop is allocated as follows:
  * **50% permanently burned**
  * **50% transferred to the Treasury** for future auction distribution

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#### Summary

**ETH → TitanX → Nova → Loop**\
Each step compresses capital, reduces supply, and feeds the Horizon flywheel.

***

#### Initial buy and burn (Days 1-10) <a href="#initial-buy-and-burn-days-1-10" id="initial-buy-and-burn-days-1-10"></a>

* **Daily Allocation**:
  * **Day 1**: no burn on day 1
  * **Day 2**: 42% of the balance is used.
  * **Day 3**: 39% of the balance is used.
  * **Day 4**: 36% of the balance is used.
  * **Day 5**: 33% of the balance is used.
  * **Day 6**: 30% of the balance is used.
  * **Day 7**: 27% of the balance is used.
  * **Day 8**: 24% of the balance is used.
  * **Day 9**: 21% of the balance is used.
  * **Day 10**: 18% of the balance is used.
* **Buy and Burn Calculation:**
  * Each day’s buy pressure is calculated as a percentage (e.g., 39%) of the remaining balance after subtracting the previous day's buy pressure.
  * % of (Balance - current pressure)
  * For example:
    * Day 3: Buy pressure = 39% of (Balance - Day 2's buy pressure)
    * Day 10: Buy pressure = 18% of (Balance - Day 9's buy pressure)

This approach introduces unpredictability and allows for fluctuating buy-and-burn amounts, with some days experiencing slightly larger burns. This all done in a fully decentralised and predicable way.

#### Post Initial buy and burn (Day 11 Onwards) <a href="#post-initial-buy-and-burn-day-11-onwards" id="post-initial-buy-and-burn-day-11-onwards"></a>

* **Daily Usage**:
  * From Day 11 onwards, 15% of the Buy and Burn balance is utilized each day.
  * The daily balance is divided into 288 parts, released every 5 minutes.
  * Unused portions will accumulate.
* **Fully Decentralized Process**:
  * The Buy and Burn process operates under pre-established, transparent rules.
  * These rules ensure clarity on the amount of tokens that will be burnt, maintaining the integrity and predictability of the protocol.


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