# Governance

Horizon uses a dual governance structure. HORIZON governs protocol-level decisions, while NOVA governs incentive distribution across markets.

Governance will not be active at launch. The protocol will initially operate with predefined parameters while the platform grows. During this period, the Horizon team will monitor system performance and manage operational parameters to support stability and early ecosystem development.

Governance mechanisms may be introduced once the protocol reaches TVL milestones and sufficient token distribution.

<h3 align="center">HORIZON Governance</h3>

HORIZON is the primary governance token. If governance is activated, HORIZON holders may participate in decisions that affect protocol configuration and ecosystem development.

Governance scope may include:

Approval of new lending markets and supported collateral assets\
Deployment of liquidity vaults and strategies\
Risk parameters such as loan-to-value limits and liquidation thresholds\
Treasury allocations and ecosystem initiatives\
Protocol integrations and upgrades

Core economic rules and token supply mechanics are defined at the smart contract level and are not intended to be modified through governance.

<h3 align="center">NOVA Incentive Governance</h3>

NOVA coordinates incentives across Earn, Borrow, and Liquidity markets. It is distributed to users who supply capital, borrow assets, or provide liquidity.

At launch, emission rates and allocation weights are defined by protocol parameters. As the system evolves, incentive distribution may transition toward a vote-escrow model, allowing participants who lock NOVA to influence how incentives are allocated across markets.

<h3 align="center">DAO Treasury</h3>

The protocol treasury is initially managed by the Horizon team to support development, integrations, and ecosystem growth.

If governance is introduced, treasury management may transition to community governance mechanisms controlled by HORIZON holders.

<h3 align="center">Governance Structure</h3>

HORIZON governs protocol configuration and ecosystem development.\
NOVA coordinates incentive distribution across markets.
