Nova is the protocol’s incentive asset.
Its function is to direct liquidity formation, borrowing utilization, and cross-chain expansion during Horizon’s growth phase.
Nova is not the protocol’s primary value accrual token. Horizon fulfils that role through a fixed supply, revenue backed buybacks and permanent supply reduction.
***
Emissions and Distribution
**Total NOVA emission: 2,800 per day**
| Category | % | NOVA / day | Purpose |
| --------- | --- | ---------- | ---------------------- |
| Liquidity | 40% | 1,120 | Incentivises LPs |
| Earn | 25% | 700 | Incentivises lending |
| Borrow | 25% | 700 | Incentivises borrowers |
| Treasury | 10% | 280 | Protocol reserve |
These allocation percentages are initial launch parameters and may be adjusted over time by the protocol to reflect market conditions, liquidity needs, and protocol growth. 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
* Referral multiplier
#### Emission Calculation
Nova emits 2,800 NOVA per day.
40% (1,120 NOVA) is allocated to Horizon Earn.
If the protocol curator assigns 50% of Earn emissions to the USDx market, that market receives 560 NOVA for the day.
User rewards are calculated proportionally:
User Reward =\
(User Effective Shares ÷ Total Effective Shares) × Market Emissions
If a user holds 132,000 Effective Shares in a market with 500,000 total Effective Shares:
(132,000 ÷ 500,000) × 560 = 147.84 NOVA
***
Liquidity Farm Fees and Buyback
Platform trading fees are distributed as follows:
**72%** → Liquidity providers\
**28%** → Nova buyback and burn
The buyback allocation is used to purchase Nova on the open market. Acquired tokens are permanently removed from circulation.
Buyback volume scales with trading activity.
***
Miner and Revenue Allocation
From all Horizon miner input tokens and platform revenue:
**8%** → Nova buyback and burn\
**10%** → Nova liquidity provisioning
Buyback allocations permanently remove Nova from circulation.
Liquidity allocations increase market depth and improve execution efficiency.
These allocations are activity dependent.
***
Supply Dynamics
Nova supply is determined by:
* Fixed daily emissions (2,800 NOVA)
* Liquidity farm fee buybacks
* Miner and revenue buybacks
* Permanent token burns
A protocol-level metric tracks:
* Daily emissions
* Daily tokens burned
* Net supply change
Net supply expands or contracts based on the relationship between emissions and buybacks.
---
# 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/nova-overview.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.