Horizon Protocol Supply and Inflation Policy

  • The Horizon Protocol inflation policy incentivizes collateral providers, liquidity providers, and synthetic asset onramps.
  • Purpose is to stimulate early growth and overall health of the protocol.
  • The policy is front-loaded to reward early adopters.
  • Rewards are calculated and distributed weekly.
  • 10% (10,000,000 HZN) will be reserved for the IFO on PancakeSwap.
  • 30% (30,000,000 HZN) will be reserved for Liquidity Mining (PHB, HZN, HZN-BNB LP) purposes.
  • 60% (60,000,000 HZN) will be reserved for the Ecosystem & Community Fund.
  • Initial launch phase begins with 100m HZN tokens minted. HZN will be distributed through community mined staking, liquidity pools, partnerships, grants, bounties and other rewards.
  • Inflation policy begins when Horizon Genesis is released.
  • 40 week front-loaded inflation begins to reward early adopters and drive growth at a rate of 75m per year distributed weekly i.e. ~1.44m HZN per week for the first 40 weeks.
  • Weekly reduction of the inflation rate at 1.25% begins at week 40.
  • On week 235: the inflation policy will end having reached the terminal inflation rate.
  • After week 235: the change to a terminal inflation rate of 2.5% per year distributed weekly.
Table 1. Period/Year and Total Supply — All HZN will be distributed to collateral providers, liquidity providers, and synthetic asset onramps.
Graph 1. Total HZN supply after the inflation policy starts.
Graph 2. Weekly inflation displayed over 7 years after the inflation policy begins.

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Horizon Protocol

Horizon Protocol

A DeFi platform facilitating the creation of on-chain synthetic assets representing the real economy. https://horizonprotocol.com/