HIP-23 Revenue Sharing Model: Intent-based System Phase one
This proposal outlines the revenue sharing model for the Intent-Based System during Phase One, aimed at supporting the Horizon Protocol ecosystem.
Last updated
This proposal outlines the revenue sharing model for the Intent-Based System during Phase One, aimed at supporting the Horizon Protocol ecosystem.
Last updated
Type: Horizon Improvement Proposal
Date: January 28th, 2025
Status: Draft 1
Summary This proposal outlines the revenue sharing model for the Intent-Based System during Phase One, aimed at supporting the Horizon Protocol ecosystem. The model allocates revenue towards rewarding HZN stakers, HZN buybacks and burns, and incentivizing trading activities to promote Xpanse.
Specification
Intent-Based Revenue Sharing
40%: Distributed to HZN stakers who meet the target C-Ratio, eligible to receive rewards in USDC or other stablecoins.
40%: Allocated for HZN buybacks and burns.
20%: Used to incentivize trading activities and promote Xpanse.
Staker Rewards
Rewards distributed to HZN stakers who meet the target C-Ratio, proportionally based on their debt share.
The first rewards distribution is set for February 26th, 2025. Monthly distributions will shift to a weekly schedule after automation is implemented.
Rewards will be in USDC or other stablecoins on the MODE network.
Rewards are non-carryover, requiring stakers to meet the target C-Ratio during the snapshot period.
HZN Buyback and Burn
40% of revenue used for HZN buybacks from PancakeSwap and burned.
Initially conducted monthly, transitioning to weekly after the first month.
Allocation for buybacks will decrease, redirecting funds to staker rewards once the global active C-Ratio exceeds 350%.
Incentives for Trading Activities and Xpanse Promotion
20% of revenue allocated to incentivize trading activities, promote Xpanse, and attract more traders.
Revenue Distribution
Revenue is manually distributed to a multi-sig wallet owned by Xpanse.
Xpanse receives 60% of total fee generation; Symmio receives the remaining 40%.
Motivation This proposal seeks to create a balanced and growth-oriented revenue-sharing model that rewards stakers, enhances HZN value through buybacks and burns, and attracts traders to Xpanse. It supports long-term sustainability and scalability for Horizon Protocol.
Considerations
Transitioning staker rewards distribution from monthly to weekly will depend on the implementation of automation.
Revenue allocation percentages will be adjusted in future phases to support the project’s growth, sustainability, and development. Further evaluation will determine the timing of these adjustments.
Exchange performance and revenue data will be available on SYMMIO’s dashboard for transparency.
Feedback & Questions If you have any suggestions, concerns, or inquiries regarding this proposal, please don't hesitate to reach out. Your feedback is valuable in ensuring the success and continuous improvement of Xpasne.
