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🪙Nova Overview

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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.

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Emissions and Distribution

Nova emits 2,800 NOVA per day.

Daily emissions are allocated as follows: Horizon Earn — 40% Horizon Liquidity — 25% Borrow Markets — 25% Treasury — 10%

Emissions are capped at the category level and allocated across supported markets by the protocol curator. 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

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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

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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.

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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.

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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.

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