Nova Overview
Introduction
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
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.
Last updated