# Examples and Strategy Assessment Horizon Staking distributes USDx rewards to positions that deposit ETH and lock HORIZON. Each position receives shares. These shares determine the portion of rewards a participant receives from the system’s reward pools. Because rewards depend on several variables, total deposits, share ownership, and protocol yield, it is useful to illustrate how the system behaves under different conditions. The following examples demonstrate how participants can evaluate potential outcomes. These examples are illustrative scenarios intended to help readers understand how the mechanism functions. Actual outcomes depend on real network activity. *** #### Example 1 Early Participant In the early phase of the system, total deposits are relatively small. Individual positions may therefore represent a larger share of the system. Assumptions: * Total ETH deposited in Horizon Staking: 1,000 ETH * User deposit: 10 ETH * User share of system: 1% * ETH price: $3,000 * Daily ETH entering the system: 10 ETH * Portion converted to USDx reward pools: 70% * POL yield contribution to reward pools: 5% annually Daily reward pool funding: 10 ETH × $3,000 = $30,000 daily deposits 70% to USDx rewards = $21,000 per day POL yield contribution: If deployed liquidity produces yield equivalent to $1,050/day, the total reward pool becomes: $21,000 + $1,050 = $22,050 daily rewards User reward share: 1% of reward pool = $220.50 per day Annualized equivalent: $220.50 × 365 = $80,482 per year User capital: 10 ETH = $30,000 Illustrative APR: $80,482 ÷ $30,000 ≈ 268% This scenario reflects the early phase where share ownership is relatively high. *** #### Example 2 Growth Phase As the system grows, deposits increase and individual share percentages decline. Assumptions: * Total ETH deposited: 10,000 ETH * User deposit: 10 ETH * User share of system: 0.1% * Daily deposits: 50 ETH * ETH price: $3,000 Daily deposit value: 50 ETH × $3,000 = $150,000 70% to reward pools: $105,000 POL yield contribution: Assume $5,000 daily yield from deployed liquidity. Total reward pool: $110,000 daily User reward share: 0.1% × $110,000 = $110/day Annualized equivalent: $110 × 365 = $40,150 User capital: 10 ETH = $30,000 Illustrative APR: $40,150 ÷ $30,000 ≈ 134% Even with lower share ownership, larger system activity maintains meaningful yield. *** #### Example 3 Mature System As Horizon matures, deposits and liquidity strategies scale further. Assumptions: * Total ETH deposited: 50,000 ETH * User deposit: 10 ETH * User share of system: 0.02% * Daily deposits: 200 ETH * ETH price: $3,000 Daily deposits value: 200 ETH × $3,000 = $600,000 70% allocated to reward pools: $420,000 POL yield contribution: Assume $30,000 daily yield from deployed strategies. Total reward pool: $450,000/day User share: 0.02% × $450,000 = $90/day Annualized equivalent: $90 × 365 = $32,850 User capital: $30,000 Illustrative APR: $32,850 ÷ $30,000 ≈ 109% In a mature system, yields remain supported by higher system throughput and strategy income. *** #### Example 4 Low Activity Scenario If deposits slow temporarily, rewards decline proportionally. Assumptions: * Daily deposits: 5 ETH * ETH price: $3,000 * Deposit value: $15,000 * Reward allocation: 70% Reward pool: $10,500/day If the user owns 0.5% of shares: 0.5% × $10,500 = $52.50/day Annualized: $19,162 APR on $30,000 capital: ≈ 64% This scenario illustrates that rewards scale with continued participation. *** #### Strategy Considerations Users can evaluate Horizon Staking using several variables. Deposit Size\ Larger deposits generate larger share allocations. Share Ownership\ Rewards are proportional to shares relative to the total system. System Growth\ Higher daily deposits increase reward pools. Protocol Yield\ Liquidity strategies deployed by the protocol generate additional reward funding. HORIZON Lock\ Locking HORIZON increases participation in reward distribution while simultaneously reducing circulating supply. *** #### Modelling the System Because Horizon Staking is driven by transparent inputs, deposits, shares, and protocol yield, users can model potential outcomes. To support this analysis, a simulation calculator is provided that allows users to adjust: * ETH deposits * share ownership * daily inflows * protocol yield * ETH price This allows users to evaluate how the system behaves across different market conditions. {% file src="/files/P85YPyq0o5z4OPmfXi4h" %} *** #### Summary Horizon Staking distributes rewards based on measurable system activity rather than fixed emissions. As deposits increase and liquidity strategies generate yield, the reward pools grow proportionally. 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