Horizon Auctions & Apex Virtual Mining

Design Objective

Horizon Auctions and APEX Virtual Mining introduce two additional mechanisms within Horizon.

HORIZON is the base layer. Users acquire it through daily auctions, and the ETH that comes in is used for buy and burn, liquidity growth, reserve refills, X28 burns, and rolling ETH payouts.

APEX is the second layer. It is slower than HORIZON mining, requires HORIZON to mine, and gives users access to a second staking sink and payout system. It also helps feed value back into Horizon by supporting future auctions.

Together, these mechanisms are designed to grow liquidity, reduce circulating supply, and create ongoing reward flows for active participants.

Daily Auctions for HORIZON

HORIZON Token Distribution:

Max Supply: 1 billion tokens, sourced from existing supply with no new tokens minted.

ETH Token Distribution:

Daily auctions for HORIZON tokens are conducted using ETH.

Buy and Burn: 50%

Staking Payouts: 30%

X28 Burn: 4% (Buy X28 directly and burn it)

Buy and Grow: 8% (ETH added to HORIZON / USDx Vault)

Genesis: 8% (no expectation)

LP Formation

The main LP pair will be HORIZON/X28

Buy and Burn Mechanism

50% of ETH Value: Allocated to the Buy and Burn mechanism, where it is used to acquire TITANX, then X28, or mint X28 when the ratio is at or above 1:1, before being distributed across the following three components.

Three Components:

Buy and Burn: 42% of HORIZON tokens purchased from the HORIZON/X28 liquidity pool (LP) are burnt.

Buy and Feed: 50% of HORIZON tokens purchased from the LP are placed in "The Reserve" for future auctions.

Buy and Grow: 8% of HORIZON tokens added to HORIZON / USDx Vault.

Buy and Burn

Daily Allocation:

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.

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.

Buy and Grow

ETH from auctions and HORIZON purchased through buy and burn are sent to the Buy and Grow balance. Once the balance reaches the required threshold, the ETH is converted into USDx and, along with the HORIZON, deposited into the HORIZON/USDx Liquidity Vault. Each new Buy and Grow allocation increases the same position, while trading fees are compounded back into it. NOVAE emissions are swapped into TitanX, transformed into X28, and added to the HORIZON buy and burn balance.

The Reserve

• Source: sourced from existing supply with no new token minting, The Reserve is the exclusive source for auction tokens.

• Starting Supply: The Reserve begins with zero tokens.

• Daily Auction: 10% of the tokens in The Reserve are available for auction each day.

• Token Entry: Tokens enter The Reserve when purchased via Buy and Burn mechanism.

• Recycling Mechanism: 50% of tokens acquired from the liquidity pool through the Buy and Burn are sent to The Reserve.

Staking (Earn ETH)

ETH Payouts to Horizon Stakers

Shares

You earn ETH each time a payout cycle is triggered, based on your percentage of total global shares. When you stake HORIZON, the HORIZON is burned and shares are created in return. Your payout is proportional to your share of the global pool. If you hold 1% of total global shares, you receive 1% of the ETH distributed for that cycle.

Users who do not claim ETH payouts for 28 days are treated as inactive. While inactive, their shares are excluded from global shares and do not accumulate ETH payouts. If they later claim, their shares are reinstated and resume participation in future ETH payout cycles. Inactive shares stop diluting the payout pools. This keeps ETH flowing to users who are engaged.

The rolling payout cycles run:

• Every 8 Days

• Every 28 Days

• Every 90 Days

• Every 365 Days

ETH is distributed across the rolling payout system as follows:

• 30% to the 8 day payout

• 30% to the 28 day payout

• 25% to the 90 day payout

• 15% to the 365 day payout

This keeps strong near term rewards while still reserving value for long duration participants.

Virtual Mining for APEX

APEX is minted at a 1:1 ratio with HORIZON.

Each mint requires a 50/50 cost split between HORIZON and ETH. Users may either provide both assets directly or pay entirely in ETH, with the protocol automatically acquiring the required HORIZON on their behalf.

Each miner has a fixed 100 day duration and accrues at a rate of 1% per day until claimed. Early claims are allowed, but any unaccrued portion is forfeited and sent to the protocol multisig wallet. Late claims carry no penalty.

Forfeiture Utility: The multisig can borrow against forfeited APEX to fund ecosystem growth, development, and infrastructure. This means early claimers effectively subsidize protocol expansion without diluting other participants.

Example: Minting 10 APEX requires 10 HORIZON plus an equal value of ETH. A claim made on Day 10 receives 10% of the miner’s total amount, while the remaining 90% is forfeited.

ETH Token Distribution:

• Buy and Burn: 50%

• Staking Payouts: 30%

• X28 Burn: 4% (Buy X28 directly and burn it)

• Buy and Grow: 8% (ETH added to APEX / HORIZON Vault)

• Genesis: 8% (no expectation)

LP Formation

• The LP is created when the first $5,000 enters virtual mining, matched with an equal dollar value of newly minted APEX.

• The main LP pair will be APEX/HORIZON

Buy and Burn Mechanism

50% of the ETH value from virtual mining is allocated to the Buy and Burn mechanism. This ETH is used to acquire TITANX, then X28, or to mint X28 when the ratio is at or above 1:1. The X28 is then used to purchase HORIZON from the HORIZON/X28 LP. Of the HORIZON acquired, 15% is routed to The Reserve to support future auctions, while the remaining 85% is used to purchase APEX from the APEX/HORIZON LP. The APEX purchased is then fully burned.

Buy and Burn

• Daily Allocation:

• 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.

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.

Buy and Grow

8% of the ETH value from virtual mining is sent to the Buy and Grow balance. Once the balance reaches the required threshold, the ETH is swapped into HORIZON and APEX, both are then deposited into the APEX/HORIZON Liquidity Vault. Each new Buy and Grow allocation increases the same position, while trading fees are compounded back into it. NOVAE emissions are swapped into TitanX, transformed into X28, and added to the APEX buy and burn balance.

Staking (Earn ETH)

ETH Payouts to Apex Stakers

Shares

You earn ETH each time a payout cycle is triggered, based on your percentage of total global shares. When you stake APEX, the APEX is burned and shares are created in return. Your payout is proportional to your share of the global pool. If you hold 1% of total global shares, you receive 1% of the ETH distributed for that cycle.

Users who do not claim ETH payouts for 28 days are treated as inactive. While inactive, their shares are excluded from global shares and do not accumulate ETH payouts. If they later claim, their shares are reinstated and resume participation in future ETH payout cycles. Inactive shares stop diluting the payout pools. This keeps ETH flowing to users who are engaged.

The rolling payout cycles run:

• Every 8 Days

• Every 28 Days

• Every 90 Days

• Every 365 Days

ETH is distributed across the rolling payout system as follows:

• 30% to the 8 day payout

• 30% to the 28 day payout

• 25% to the 90 day payout

• 15% to the 365 day payout

This keeps strong near term rewards while still reserving value for long duration participants.