Supply Mechanics
A Fixed-Supply, Share-Based Virtual Mining Protocol
Total Supply: 1,000,000,000 HORIZON Minting: None (100% created at genesis) Halving: Every 4 Years Model: Pool-based emissions with share-based difficulty
Introduction
Horizon has a virtual mining module designed to deliver Bitcoin-like monetary discipline without proof-of-work, hardware arms races, or discretionary issuance. Horizon enforces a fixed supply cap, deterministic emissions, and competitive participation using smart contracts.
Unlike inflationary DeFi reward systems, Horizon does not mint tokens over time. All tokens are minted once at genesis, then released over time on a transparent, fixed schedule, similar to Bitcoin’s block reward distribution. Participants compete through time-locked commitments that translate capital and patience into mining power.
The result is a protocol that combines:
Bitcoin-style scarcity
Deterministic supply release
Permissionless participation
Programmatic difficulty adjustment
Supply & Genesis
Total Supply: 1,000,000,000 HORIZON
Minting: Disabled permanently
Creation: 100% of supply is created at protocol launch
Custody: Tokens are held by the Horizon Emissions Pool
The Horizon Emissions Pool is a non-upgradeable distribution vault. It does not mint tokens; it only releases pre-existing tokens according to the emission rules defined below.
Emission Model
Horizon follows a Bitcoin-inspired emission curve with annual halving's.
Annual Halving Schedule
Emissions occur continuously
The emission rate halves every 12 months
Each year distributes exactly 50% of the previous year’s allocation
Emissions asymptotically approach zero
This ensures:
Front-loaded distribution
Long-term scarcity
Full supply predictability
The emission schedule is enforced by immutable smart contracts and cannot be altered by governance or external inputs.
Horizon Miners
Horizon Miners are virtual mining contracts that entitle users to a share of emissions from the Horizon Emissions Pool.
Mining is competitive and proportional. There is no guaranteed APR and no fixed ROI.
Miner Creation
Users may create Horizon Miners by depositing:
ETH
TitanX
X28
HORIZON
All deposits are converted to a USD-denominated value at the moment of miner creation using oracle pricing, which serves as the fixed reference for ROI calculations.
Horizon-Based Miner Fee
When creating a miner using HORIZON, users must additionally pay an ETH fee.
Base ETH fee: 5%
Fee model: Dynamic, capped at 15%
Adjustment variable: Total Global Shares
The ETH fee increases automatically as Total Global Shares increase and decreases as they fall, never dropping below the base.
All ETH fees follow the standard ETH deposit path and are treated identically to ETH miner deposits.
Miner Power & Length Efficiency
Horizon separates power from efficiency to mirror real-world mining dynamics.
USD value sets base power
Miner length sets efficiency (shares per USD)
Larger deposits receive proportionally more power, while longer commitments receive higher efficiency.
USD Power
At miner creation, each deposit is converted to a USD-denominated value using oracle pricing.
All deposits are normalized to USD at creation and used as the fixed reference for power and reward calculations.
This USD value defines the miner’s base power and is immutable for the lifetime of the miner.
Base Power = USD Deposited
Length-Based Efficiency (8–88 Days)
Miner length determines how efficiently USD power is converted into mining shares.
Minimum duration: 8 days
Maximum duration: 88 days
Longer miners receive more shares per USD than shorter miners, reflecting a stronger time commitment.
Efficiency Calculation
Miner length is normalized across the allowed range and converted into an efficiency factor:
t = (Miner Length − 8 days) / (88 days − 8 days)
The efficiency factor increases smoothly with duration:
Efficiency = Min Efficiency + t² × (Max Efficiency − Min Efficiency)
Share Creation
Mining shares are created by combining USD base power with length-based efficiency:
Shares = USD Power × Efficiency
More USD → more shares
Longer duration → higher efficiency per USD
Once created:
Shares are fixed
They remain active until miner expiry or early claim
They contribute to Total Global Shares for difficulty adjustment
Loyalty & Referral Multipliers (Dynamic)
Horizon includes Loyalty and Referral programs that adjust a miner’s effective shares over time.
These programs do not change USD power or miner length
They apply a multiplier to shares only
Multipliers are evaluated and updated daily
Daily Recalculation
If a user gains a tier, their effective shares increase starting the next day
If a user drops a tier, their effective shares decrease starting the next day
No retroactive adjustments are applied
Conceptually:
Effective Shares = Base Shares × Loyalty Multiplier × Referral Multiplier
Daily updates ensure that long-term participation and ecosystem contribution are rewarded, while preventing advantages from short-term activity.
Mining Shares
Mining Power is converted into Mining Shares.
Shares represent a miner’s proportional claim on emissions
Shares are added to Total Global Shares
Shares are fixed for the lifetime of the miner
Rewards are distributed according to:
Difficulty Adjustment
Horizon replaces hash-based difficulty with share-based difficulty.
Total Global Shares represent network difficulty
As new miners enter, Total Global Shares increase
As miners expire or forfeit, Total Global Shares decrease
This ensures that:
Emissions remain perfectly on schedule
Individual rewards adjust dynamically
No participant can accelerate supply release
Accrual Mechanics
Emitted HORIZON does not transfer immediately.
Instead:
Tokens accumulate internally inside each miner
Accrual occurs continuously
Balances are tracked per miner
This design reduces immediate sell pressure and prevents claim-spamming.
Claiming Rewards
HORIZON rewards accumulate internally inside each miner and may be claimed either at maturity or early, subject to the rules below.
Claim at Maturity
At the end of the miner’s full duration, 100% of accumulated HORIZON becomes claimable
No fees or penalties apply
The miner expires automatically
Its shares are removed from Total Global Shares
Early Claim (Penalty Exit)
Early claiming is treated as a full exit from mining. Once a minimum of 7 days has passed, a miner may be early claimed.
When a user claims early:
A 10% ETH fee is paid
10% of accrued HORIZON is forfeited
Both the ETH fee and forfeited HORIZON are sent to the Horizon Treasury
The miner expires immediately
Its shares are removed from Total Global Shares
The remaining 90% of accrued HORIZON is claimable by the user.
Early claiming permanently ends the miner and cannot be reversed.
This mirrors real-world miners shutting down hardware, increasing rewards for those who remain.
Early claims introduce a real economic cost, discouraging short-term behaviour while recycling value back into the protocol through the treasury.
All accrual, claimable amounts, and forfeits are shown transparently in the UI before confirmation.
This is an advanced feature, use with care.
Grace Periods & Penalties
At the end of the miners duration, the miner becomes fully claimable.
A 30 day grace period follows, during which the miner may be claimed with no penalties.
After the grace period, unclaimed miners enter a late-claim penalty phase, applied to the claimable amount as follows:
1 day late → lose 1%
2 days late → lose 3%
3 days late → lose 8%
4 days late → lose 17%
5 days late → lose 35%
6 days late → lose 72%
7 days late → lose 99%
Penalized tokens are permanently removed from circulation.
Value Routing, Buybacks, and Treasury Recycling
Horizon routes value back into HORIZON through the Universal buyback module. Value enters this module from two primary sources: external asset flows generated through miner participation and revenue generated through ongoing protocol activity.
Miner inputs made using assets other than HORIZON, including ETH, TitanX, and X28, are processed through predefined routing logic. These assets are converted into HORIZON through open market acquisition.
Protocol revenue generated from vault fees, interest rate spreads, trading fees, and yield from protocol-owned liquidity is also routed into the same buyback mechanism.
All buybacks follow a fixed allocation rule. Fifty percent of acquired HORIZON is permanently burned. Fifty percent is allocated to the Treasury. This allocation is constant and applied uniformly across all sources.
HORIZON held in the Treasury, including tokens allocated through buybacks or forfeited through early claims, remains within the fixed supply. These tokens may be redeployed to support ecosystem growth through incentives across earn vaults, borrow markets, or liquidity programs. Each incentive deployment defines a specific token amount and duration.
Treasury recycling operates entirely within the existing supply framework and does not introduce additional issuance or alter the emission schedule.
Security & Guarantees
Horizon enforces the following guarantees:
No minting
Fixed maximum supply
Deterministic emissions
Annual halvings
Immutable emission rules
Non-discretionary difficulty adjustment
All core mechanics are enforced at the smart contract level.
Halving Schedule Comparison: Annual and Four-Year
Previous Annual Halving Model
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