# Horizon v2 Whitepaper

Overview

Horizon issues a fixed supply token through a continuous bond mechanism on the TitanX ecosystem. The protocol has no auctions, no mining, and no emissions on HORIZON. Every dollar of activity through the platform funds the token, rewards stakers, deepens protocol-owned liquidity, and refills bond inventory through a single value flow. One distribution mechanism, one universal split, perpetual operation within a hard supply cap. The mechanism compresses to a single principle: every dollar that flows through Horizon buys HORIZON on the open market, with 20% burned forever, 30% paid to HORIZON stakers, and 50% recycled into bond inventory for the next bonder. The protocol additionally operates as its own liquidity provider, capturing trading fees and NOVAE emissions on its positions, with all harvested rewards routed to stakers in their native asset.

Supply

Total supply: 1,000,000,000 HORIZON. Hard cap. Genesis is the only mint event. Every mechanism in the protocol operates at or below this number. Allocation: * Bond distribution (genesis): 800,000,000 * Treasury: 200,000,000 Treasury HORIZON funds initial POL seeding, ecosystem grants, audits, infrastructure, security reserves, and long term protocol development. The Treasury also receives ongoing USDx flow from bond and platform revenue routing, which the team deploys productively across protocol operations. All treasury operations are published on chain and dedicated dashboards.

Launch and Initial LP Formation

At launch, both HORIZON and NOVAE are minted in their entirety to genesis allocations. The first $10,000 USDx received through the bond contract is allocated entirely to initial liquidity formation, split as follows: * $5,000 USDx paired with 5,000,000 HORIZON to seed the HORIZON/USDx pool, establishing a starting price of $0.001 per HORIZON * $5,000 USDx paired with 1,000 NOVAE to seed the NOVAE/USDx pool, establishing a starting price of $5 per NOVAE The HORIZON and NOVAE used for initial pairing are drawn from the Treasury allocation. After initial LP formation completes, all subsequent bond USDx flows through the standard routing described below. From that point forward, POL deepening occurs via Gamma V2 vault zaps, which acquire pair tokens through market swaps rather than treasury draws.

Distribution Mechanism

HORIZON enters circulation exclusively through bonds. Users deposit USDx and receive HORIZON at a discount, vesting linearly over a duration the user selects. #### **Bond Mechanics** Bond duration: 28 to 88 days, selected by the user at bond purchase. Discount curve (full state): * 28 days: 5% discount * 88 days: 20% discount * Linear interpolation between Vesting is linear over the chosen duration. HORIZON drips to the bond position block by block from the moment the bond is purchased. Upon maturity, Bonders may claim their fully vested HORIZON at any time without penalty. #### **Early Claim and Forfeit** Bonders may exit their position at any point before vest completion via early claim. Early claim returns the vested portion of the bonder's HORIZON. The unvested portion is forfeited and returns to the protocol bond inventory, becoming available for future bonders. Early claim mechanics: * Bonder receives: HORIZON vested up to the claim moment * Bonder forfeits: HORIZON unvested at the claim moment * Forfeited HORIZON: 100% returned to bond inventory Worked example: A bonder bonds 1,000 USDx for 1,200 HORIZON over 88 days. At day 44 (50% through vest), 600 HORIZON is vested. If the bonder early claims at day 44, they receive the 600 vested HORIZON and forfeit the 600 unvested HORIZON, which returns to the bond contract for future bonders. #### **Dynamic Discount Adjustment** The discount curve adjusts automatically based on aggregate vesting load. Vesting load is defined as total HORIZON in vesting positions divided by circulating supply. | Vesting Load | 28 Day Discount | 88 Day Discount | | ------------ | --------------- | --------------- | | Below 25% | 5% | 20% | | 25% to 40% | 5% | 17% | | 40% to 55% | 4% | 13% | | 55% to 70% | 4% | 9% | | 70% to 85% | 3% | 6% | | Above 85% | 3% | 4% | Long bonds remain available across all vesting load states. At extreme vesting load, the 88-day premium over 28-day compresses to a single percentage point, naturally directing bond demand toward shorter durations through pricing. As vesting load drops back below trigger thresholds, the curve restores automatically. A bonder's discount is locked at purchase time. Subsequent curve adjustments leave existing bonds unchanged. Bonders take dynamic-discount risk at bond purchase time.

Bond USDx Routing

Every USDx that enters via a bond purchase splits as follows: * 78% to the buyback contract (executes market buy of HORIZON, then universal 20/30/50 split) * 12% to Treasury (paid in USDx, instant to Treasury wallet, deployed productively across protocol operations) * 7% to HORIZON/USDx Gamma V2 POL (single-sided USDx deposit, vault zaps) * 3% to NOVAE/USDx Gamma V2 POL (single-sided USDx deposit, vault zaps) The HORIZON purchased through the buyback flow is processed through the universal value split. POL allocations are deployed into the protocol's own Gamma V2 farms, generating ongoing revenue.

Platform Revenue Routing

All platform revenue (vault performance fees, LP vault fees, liquidations, OEV, USDx portion of POL trading fees, and any future revenue source) is collected as USDx and split: * 75% to the buyback contract (executes market buy of HORIZON, then universal 20/30/50 split) * 25% to Treasury

Buyback Mechanism

HORIZON buybacks execute through a permissionless caller-incentivised function. USDx allocated to buybacks accumulates in the buyback contract from bond and platform revenue routing. The function becomes callable when both of these conditions are satisfied: * Time elapsed since last call exceeds the configured interval * USDx balance meets or exceeds the configured per-call swap cap Any address may call the function. The caller receives a percentage of the swapped USDx as compensation (default 0.5%). The remaining USDx executes a market swap to HORIZON. Bought HORIZON enters the universal 20/30/50 split. #### **Treasury-Controlled Parameters** The Treasury adjusts three parameters within governance bounds: * **Per-call swap cap**: maximum USDx swapped per buyback execution. Lower caps reduce slippage in thin liquidity. Higher caps improve gas efficiency in deep liquidity. * **Interval**: minimum time between buyback calls. Tightens or loosens based on USDx accumulation rate and target buyback frequency. * **Caller fee**: percentage paid to the address triggering the function. Default 0.5%. Adjustable to maintain bot incentive economics across changing gas conditions. #### **Why Permissionless** The caller fee creates a sustained incentive for third parties to monitor the buyback contract and execute calls when eligible. This decentralises buyback execution: the protocol does not depend on the team or any specific validator to trigger buybacks. The mechanism runs reliably as long as the caller fee remains profitable relative to gas costs. The same mechanism governs NOVAE buybacks, with parameters set independently by the Treasury.

The Universal Value Split

Every HORIZON the protocol acquires through buybacks, regardless of source, splits identically: * 20% burned permanently * 30% distributed to HORIZON staker pools * 50% recycled to bond inventory This rule is invariant. It applies to HORIZON bought via bond USDx routing and HORIZON bought via platform revenue routing. One mechanism, one rule, three outputs. The recycled portion replenishes bond inventory and becomes available for future bonders. The protocol does not deplete; recycled inventory is continuously refilled by the 50% recycle from every buyback. The mechanism operates indefinitely within the fixed 1B cap.

Protocol-Owned Liquidity

The 10% of bond USDx allocated to POL is deployed into Horizon's own Gamma V2 farms across two pairs: HORIZON/USDx and NOVAE/USDx. Allocations are sent as single-sided USDx deposits. Gamma V2 vaults handle the zap automatically, swapping a portion of the USDx into the pair token at market price and deploying both assets into the concentrated liquidity position. POL allocation per bond purchase: * 7% of bond USDx to HORIZON/USDx Gamma V2 vault * 3% of bond USDx to NOVAE/USDx Gamma V2 vault Treasury HORIZON allocation is preserved for strategic uses. The pair tokens are acquired by the vault via market swap, contributing additional structural buy pressure on HORIZON and NOVAE alongside the primary buyback flow. POL accumulates continuously. As bond volume scales, the protocol's LP positions deepen, providing structural liquidity depth and capturing a growing share of trading fees and emissions on both pairs. #### **POL Harvest Routing** The protocol harvests revenue from its POL positions continuously. Harvested assets route to their native destination directly: * HORIZON harvested from HORIZON/USDx fees: 100% to HORIZON staker pools * NOVAE harvested from NOVAE/USDx fees: 100% to NOVAE staker pools * USDx harvested from any LP fees: routed through Platform Revenue Routing (75% to buyback contract, 25% to Treasury) * NOVAE emissions earned by all POL positions: 100% to NOVAE staker pools This native asset routing preserves the value created by POL operations and delivers it directly to the appropriate stakeholders. Each asset reaches its destination in its native form.

HORIZON Staking

HORIZON holders may stake their tokens to receive their share of staker allocations from buyback flow and POL harvested HORIZON. Rewards distribute through two rolling payout cycles, each releasing accumulated HORIZON at fixed intervals. #### **Staking Parameters** Stake duration: 28 to 3500 days. Distribution token: HORIZON. Reward sources: * 30% of every HORIZON the protocol buys via universal value split * 100% of HORIZON harvested from HORIZON/USDx POL trading fees #### **Effective Shares** A staker's Effective Shares determine their proportional claim on each distribution pool. Effective Shares = Principal × (1 + Lock Multiplier) × (1 + Loyalty Multiplier) *Lock Multiplier (Longer Pays More)* Linear from 0% at 28 days to +350% at 2888 days. A 28-day stake earns the base rate. A 2888-day stake multiplies by 4.5x. Stakes between scale linearly along this curve. *Loyalty Multiplier* Loyalty tier is determined by the staker's HORIZON holdings as a percentage of their total portfolio (including HORIZON deployed across the platform and stakes), similar to the Nexo-style loyalty calculation. * Silver (1% to 5% HORIZON portfolio share): +10% * Gold (5% to 10%): +25% * Platinum (10%+): +50% User Reward = (User Effective Shares ÷ Total Effective Shares) × Pool Distribution #### **Rolling Payout Cycles** All HORIZON destined for stakers flows into two rolling payout pools. Each pool accumulates between cycle completions and distributes to active stakers on its scheduled cadence. | Cycle | Cadence | Allocation | | ------- | ----------------------------------------------- | --------------------- | | 28-day | Every 28 days, forever (day 28, 56, 84...) | 50% of staker HORIZON | | 369-day | Every 369 days, forever (day 369, 738, 1107...) | 50% of staker HORIZON | #### **Cycle Eligibility** Stakers active on a cycle distribution date qualify for that distribution. Active means the staker has stake principal in the contract and has claimed within the inactivity threshold. Eligibility is checked at the moment of each distribution. There is no minimum lock duration required to qualify for any cycle. A staker active on day 369 qualifies for the 369-day distribution, regardless of when they staked or how long they are locked for. A staker's share of each pool is calculated based on their Effective Shares as a proportion of total Effective Shares at the distribution snapshot. #### **Inactivity** A staker becomes inactive if they fail to claim within 36 days of a distribution they qualified for. Inactive stakes do not earn from subsequent distributions until reactivated by claiming. Reactivation applies forward only; missed distributions during inactivity remain forfeited and redirect to active stakers. This rule scales correctly with both cycles. A 28-day cycle staker has 8 days of grace beyond each cycle (36 - 28 = 8). A 369-day cycle staker has 36 days post-distribution to claim each annual payout, with the rest of the year free of inactivity risk. #### **Reflexive Yield** Staker rewards are paid in HORIZON sourced from open market buybacks funded by platform activity, plus HORIZON earned through POL operations. Stakers can re-stake earned HORIZON to compound their position across multiple cycle completions. The yield mechanism is structurally aligned with token deflation: every distribution to a staker is HORIZON that was just acquired through a market buy or earned through productive LP activity, with 20% of the same buyback flow burned permanently.

NOVAE Token

NOVAE is the protocol's incentive asset. It directs liquidity formation, borrowing utilization, and lending participation during Horizon's growth phase. HORIZON is the protocol's primary value accrual token. #### **NOVAE Emissions** Total NOVAE emission: 2,800 per day. | Category | % | NOVAE / day | Purpose | | --------- | --- | ----------- | ---------------------- | | Liquidity | 40% | 1,120 | Incentivises LPs | | Earn | 25% | 700 | Incentivises lending | | Borrow | 25% | 700 | Incentivises borrowers | | Treasury | 10% | 280 | Protocol reserve | Within each market, rewards are distributed proportionally using a weight-based share model based on each participant's Effective Shares relative to total Effective Shares. Effective Shares incorporate principal contribution, loyalty multiplier, and referral multiplier. #### **NOVAE Buyback Flow** Platform trading fees on liquidity markets are distributed: * 72% to liquidity providers * 28% to NOVAE buyback contract NOVAE buybacks execute through the same permissionless caller-incentivised function described in the Buyback Mechanism section. The Treasury controls per-call cap, interval, and caller fee independently for the NOVAE buyback contract. All NOVAE acquired through buybacks splits: * 20% burned permanently * 80% distributed to NOVAE staker pools NOVAE buy pressure also flows from the 3% bond USDx allocation to the NOVAE/USDx Gamma V2 vault, which executes market swaps for pairing on every bond purchase. #### **NOVAE Staking** NOVAE holders may stake their tokens to receive their share of staker allocations from buyback flow and POL harvested rewards. Rewards distribute through two rolling payout cycles, mirroring the HORIZON staking structure. #### **Staking Parameters** Stake duration: 28 to 3500 days. Distribution token: NOVAE. Reward sources: * 80% of every NOVAE the protocol buys via buyback * 100% of NOVAE harvested from NOVAE/USDx POL trading fees * 100% of NOVAE emissions earned by protocol-owned POL positions #### **Effective Shares** Effective Shares = Principal × (1 + Lock Multiplier) × (1 + Loyalty Multiplier) Same Lock Multiplier (linear, 0% at 28 days to +350% at 2888 days) and Loyalty Multiplier (Silver/Gold/Platinum at +10%/+25%/+50% by HORIZON portfolio share) as HORIZON staking. User Reward = (User Effective Shares ÷ Total Effective Shares) × Pool Distribution #### **Rolling Payout Cycles** All NOVAE destined for stakers flows into two rolling payout pools. | Cycle | Cadence | Allocation | | ------- | ----------------------------------------------- | ------------------- | | 28-day | Every 28 days, forever (day 28, 56, 84...) | 50% of staker NOVAE | | 369-day | Every 369 days, forever (day 369, 738, 1107...) | 50% of staker NOVAE | #### **Cycle Eligibility** Stakers active on a cycle distribution date qualify for that distribution. Active means the staker has stake principal in the contract and has claimed within the inactivity threshold. Eligibility is checked at the moment of each distribution. There is no minimum lock duration required to qualify for any cycle. A staker's share of each pool is calculated based on their Effective Shares as a proportion of total Effective Shares at the distribution snapshot. #### **Inactivity** A staker becomes inactive if they fail to claim within 36 days of a distribution they qualified for. Inactive stakes do not earn from subsequent distributions until reactivated by claiming. Reactivation applies forward only; missed distributions during inactivity remain forfeited and redirect to active stakers.

Treasury

The Treasury operates as the protocol's productive capital reserve, holding both HORIZON and USDx assets. All Treasury operations are published on chain via dedicated dashboards. Treasury HORIZON (200M genesis allocation) funds: * Initial POL seed at launch (one-time event to bootstrap initial liquidity) * Strategic partnerships and ecosystem grants * Audit funding and security reserves * Long term protocol development funding * Emergency liquidity backstops Treasury USDx (ongoing flow from 12% of bond USDx and 25% of platform revenue) funds: * Team operational compensation (development, design, ops, BD, infrastructure, legal, marketing) * Productive deployment across the protocol's own products (earn vaults, borrow markets, bond positions, LP positions) Treasury USDx held but not immediately needed for operations is deployed into Horizon's own platform, generating yield that compounds the Treasury position over time. The Treasury operates as a sophisticated user of the protocol it governs, putting working capital to productive use while retaining liquidity for operational needs. The Treasury also controls the buyback mechanism parameters (per-call cap, interval, caller fee) for both HORIZON and NOVAE buyback contracts. Treasury HORIZON enters the bond contract or the universal value split only when deliberately routed by governance for specific purposes.

Supply Lifecycle

Phase 1 (Genesis Distribution): Bonds distribute HORIZON from the 800M genesis allocation. Buyback flow begins immediately and refills bond inventory at 50% of every buyback. POL positions accumulate as bond volume grows. Effective float is deflationary at any meaningful platform volume. Phase 2 (Hybrid Supply): As genesis allocation depletes, recycled inventory becomes a larger share of available bonds. Buyback flow becomes increasingly important to bond mechanism throughput. POL positions reach significant scale, generating meaningful native-asset distributions to stakers. Phase 3 (Recycling Phase): Genesis exhausted. Bonds operate exclusively from recycled inventory. Each bond purchase triggers a buyback that refills part of what was just bonded out. Supply trends down through the 20% burn on every flow. POL continues generating revenue. The protocol does not deplete; recycled inventory is continuously refilled by the 50% recycle from every buyback. The mechanism operates indefinitely.

Worked Example

Daily bond USDx flow: 2,000,000 USDx at HORIZON market price of $0.50 (illustrative). Bond USDx allocation: * 78% to buyback contract: 1,560,000 USDx * 12% to Treasury: 240,000 USDx (deployed productively across protocol operations) * 7% to HORIZON/USDx Gamma V2 vault: 140,000 USDx (vault zaps, half buys HORIZON on market for pairing) * 3% to NOVAE/USDx Gamma V2 vault: 60,000 USDx (vault zaps, half buys NOVAE on market for pairing) Daily platform revenue: 200,000 USDx. Platform revenue allocation: * 75% to buyback contract: 150,000 USDx * 25% to Treasury: 50,000 USDx Total daily USDx in buyback contract: 1,710,000 USDx. Buyback execution: when callable, the function executes a market swap. * Caller fee (0.5%): 8,550 USDx * Net swap to HORIZON: 1,701,450 USDx → 3,402,900 HORIZON bought at market Universal split applied: * 680,580 burned permanently (20%) * 1,020,870 distributed to HORIZON staker pools (30%) * 1,701,450 recycled to bond inventory (50%) Daily HORIZON staker pool inflow split across cycles: * 28-day pool: 510,435 HORIZON (50%) * 369-day pool: 510,435 HORIZON (50%) Each pool distributes on its cadence to active stakers based on Effective Shares snapshot at distribution time. Additional structural buy pressure from POL pairing: * \~70,000 USDx of HORIZON market buys via Gamma V2 zap * \~30,000 USDx of NOVAE market buys via Gamma V2 zap POL positions (illustrative, scales with platform TVL): * Cumulative POL TVL: 50,000,000 USD across both pairs * Daily trading fee yield: 0.1% of TVL = 50,000 USD value * Daily NOVAE emissions captured by POL: \~200 NOVAE POL harvest distribution: * HORIZON portion of HORIZON/USDx fees → HORIZON staker pools (split 50/50 across cycles) * NOVAE portion of NOVAE/USDx fees → NOVAE staker pools (split 50/50 across cycles) * USDx portion of all LP fees → Platform Revenue Routing (75% to buyback contract, 25% to Treasury) * NOVAE emissions earned by POL → NOVAE staker pools (split 50/50 across cycles) Daily Treasury USDx flow: * From bond routing (12% of 2,000,000 USDx): 240,000 USDx * From platform revenue routing (25% of 200,000 USDx): 50,000 USDx * From USDx portion of POL fees (25% of POL fee USDx): variable, scales with POL TVL and trading volume * Total daily Treasury USDx: 290,000 USDx + 25% of POL fee USDx Treasury deploys this productively across earn vaults, POL positions, or bonds, generating compounding yield while funding operations. These are illustrative values. Actual flow scales with platform activity.

Summary

Horizon's tokenomics compresses to a single value flow: Every dollar that enters Horizon, whether through a bond purchase or platform revenue, splits between immediate buybacks, Treasury reserves, and protocol-owned liquidity deployment. Buybacks execute through a permissionless caller-incentivised function. Bought HORIZON splits universally: 20% burned forever, 30% to HORIZON staker pools, 50% recycled into bond inventory. Protocol-owned liquidity is funded via single-sided USDx deposits to Gamma V2 vaults, which handle pair acquisition through market swaps. POL positions generate ongoing revenue, with each harvested asset routed to its native destination, HORIZON to HORIZON staker pools, NOVAE to NOVAE staker pools, USDx to Platform Revenue Routing. Both HORIZON and NOVAE staker rewards distribute through two rolling payout cycles (28 and 369 days), with allocations split 50/50 across the cycles. Stakers active at distribution time qualify for that distribution proportional to their Effective Shares. The Treasury holds both HORIZON and USDx assets. HORIZON funds strategic reserves, partnerships, and protocol development. USDx funds team operations and is deployed productively across Horizon's own products, compounding yield while serving as working capital. The Treasury also controls buyback mechanism parameters. All Treasury operations are published on chain via dedicated dashboards. Bonders may early claim at any time, receiving their vested portion while forfeiting the unvested portion back to bond inventory for future bonders. Bonders take dynamic-discount risk at bond purchase time. The mechanism is permanent and operates entirely within a fixed 1B cap. HORIZON has no emissions, no mining, and no auctions. One ruleset, four ingress points (bond USDx, platform revenue, POL trading fees, POL emissions), perpetual operation. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://trader-li.gitbook.io/horizon-protocol/horizon-v2-whitepaper.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.