> ## Documentation Index > Fetch the complete documentation index at: https://docs.horse.fun/llms.txt > Use this file to discover all available pages before exploring further. # HORSE Token > Volume-linked emission with deflationary burns and buyback ## Overview HORSE is the protocol token with: **Volume-linked** Scales with entry volume, capped per race **By entry volume** Proportional to participation **Burns + buyback** 10–50% jackpot burns + 1% buyback-and-burn *** ## Emission HORSE is **not** minted at a fixed rate. Each race mints an amount that scales with that race's entry volume, capped so that no single oversized race can mint a disproportionate amount: $$ E = \min\left(c \times B,\; E_{\text{cap}}\right) $$ where $B$ is the total entry volume of the race, $c$ is the emission coefficient (HORSE minted per SOL of volume), and $E_{\text{cap}}$ is the per-race cap. **The coefficient $c$ only ever decreases**: it steps down at pre-announced **cumulative-volume milestones** (halving-style), so emission per SOL is richest in the protocol's earliest phase and tightens as it matures. Milestones depend only on total historical volume — never on the current race or any trailing window — so the cost of minting a token is the same at every moment and cannot be gamed by timing activity to quiet periods. ### Emission Schedule | Phase | Cumulative entry volume | $c$ (HORSE per SOL) | Per-race cap | Max phase emission | | --------- | ----------------------- | ------------------- | ------------ | --------------------------- | | Bootstrap | 0 → 50,000 SOL | 0.5 | 25 HORSE | 25,000 HORSE | | Growth | 50,000 → 1,000,000 SOL | 0.2 | 10 HORSE | 190,000 HORSE | | Mature | beyond 1,000,000 SOL | 0.1 | 5 HORSE | open-ended (terminal phase) | * Each cap equals $c \times 50$: a single race at the \~50 SOL organic design scale emits in full, while abnormally large races hit the cap * Mature is the terminal phase — $c$ never steps down again * Phase transitions are triggered purely by total historical volume crossing the milestone **Above the cap, extra volume mints nothing but still funds the buyback** — organic growth beyond the design scale translates into net buy pressure rather than into supply. The emission of each race is distributed to all participants in proportion to their entry volume: $$ \text{Your Tokens} = E \times \frac{\text{Your Entry Volume}}{\text{Total Race Volume}} $$ **Below the cap** this simplifies to `Your Tokens = c × Your Entry` — you earn exactly `c` HORSE per SOL committed. **Example** (bootstrap, $c = 0.5$): ``` Race volume: B = 20 SOL → E = 0.5 × 20 = 10 HORSE (below the 25 cap) Your entry: 10 SOL (50% of volume) Your tokens = 10 × (10 / 20) = 5 HORSE ``` Because emission tracks real volume, supply is **endogenous**: it grows only as fast as genuine activity — there is no fixed daily or annual issuance, and the cap prevents artificially inflated races from minting disproportionately. *** ## Distribution Tokens are distributed to **all participants** (winners and losers), proportional to entry share. Below the per-race cap, each player earns `c` HORSE per SOL committed, linearly — during bootstrap (`c = 0.5`): * Enter 10 SOL → Earn 5 HORSE * Enter 50 SOL → Earn 25 HORSE Your share depends only on your percentage of total entry volume, not on race outcomes. *** ## Burn Mechanism When a player wins a jackpot, a portion of their **staked** HORSE tokens — the same balance snapshotted at entry close that determined their boost — is permanently burned: | Jackpot Type | Burn Rate | | --------------------- | --------------------------------------- | | Blazing Hoof (normal) | 10% | | King's Run (super) | 50% | | Both (same race) | 60% (additive, on the original balance) | **Example:** ``` You have staked: 2,000 HORSE tokens Win King's Run Burn: 2,000 * 0.50 = 1,000 tokens Remaining: 1,000 tokens ``` ### Why Burns Matter * Creates deflationary pressure on supply * Rotates the jackpot advantage over time — winners consume their stake and must rebuild * Winners buy back HORSE to restock, adding buy pressure * Targets **staked** tokens, so it cannot be dodged *** ## Token Utility HORSE has a **single purpose: boosting your jackpot share.** When a jackpot triggers, it is split among players who backed the **winning horse**, in proportion to their entry, **boosted linearly by their staked HORSE**: $$ \text{score}_u = b_u \times (1 + \lambda R_u), \qquad \text{Your Share} = \text{Jackpot} \times \frac{\text{score}_u}{\sum_{\text{winners}} \text{score}} $$ * $b_u$ = your entry on the winning horse * $R_u$ = your **staked** HORSE, snapshotted at entry close * $\lambda$ = boost coefficient (protocol parameter, calibrated so a typical staker earns an order of magnitude more per unit entered than a non-staker) **The entry is the ticket, tokens are the multiplier.** A winner with no staked HORSE still receives their entry-proportional base share — the formula never pays zero to a committed winner. The boost is linear: each additional staked token adds the same increment, with no point of diminishing returns. And a dust entry earns a dust share regardless of token holdings. **Example** (illustrative $\lambda = 1/200$): ``` Jackpot triggers; you backed the winning horse. Your entry: 100 SOL, staked HORSE: 1,500 Your score = 100 × (1 + 1,500/200) = 100 × 8.5 = 850 A non-staker entering the same 100 SOL scores 100 — your stake multiplies your share 8.5×. ``` Long-term players who stake accumulated HORSE receive multiplied jackpot shares — and put more tokens at risk for the deflationary burn. *** ## Staking HORSE must be **staked** to boost jackpot shares. Staking is live and permissionless: * **No lock-up:** stake or unstake at any time * **Snapshot at entry close:** what counts for a race is your staked balance the moment its entry phase closes — stake changes made during the race phase apply only from the next race * **Boost and burn read the same value:** the frozen snapshot determines both your jackpot share and the burn on a win * **Unstaking finalizes after settlement:** a withdrawal requested while a race is in flight executes only after that race settles — no one can see a jackpot trigger on-chain and pull their stake ahead of the burn Once entries close, they are final: everyone's boost and burn are fixed by their position at the close, using exactly the information available to all. *** ## Buyback and Burn A fixed **1% of every race's entry volume** funds a **buyback** of HORSE. This is the protocol's primary source of non-speculative token value: it turns game activity into steady buy pressure and gives HORSE a value floor tied to real volume rather than sentiment alone. The buyback operates in **three phases**: With no market to buy from, the allocation accumulates as SOL. This reserve seeds the initial liquidity pool — the protocol bootstraps its own liquidity from game activity, with no founder capital. For an initial period after the pool opens, the allocation delivers its buy pressure as **protocol-owned liquidity** — deposited into the pool rather than burned. Pool depth grows with volume, damping the price impact of every flow while the market is at its thinnest. The allocation purchases HORSE from the pool and permanently burns it. Purchases execute continuously rather than in lumps, to avoid price spikes and front-running. Both the buyback and the emission scale with volume, so the buyback offsets issuance by construction — the balance is set by the chosen rates, independent of the activity level. *** ## Token Launch and Liquidity HORSE has **no team or insider allocation**. The only supply minted in advance is a **premint** reserved entirely for seeding the initial liquidity pool; every other token enters circulation through play, via the volume-linked emission. | Parameter | Value | | ------------------------ | -------------------------------------------------------------------------------------- | | Premint (liquidity seed) | **500,000 HORSE** — reserved entirely for the pool | | Initial pool SOL | **500 SOL** — drawn entirely from the accumulated buyback reserve, no external capital | | Launch price | **0.001 SOL per HORSE** — set mechanically by the seed-to-premint ratio | **Bootstrap to launch:** until the pool exists, the 1% buyback allocation accumulates as SOL. The reserve reaches the 500 SOL seed exactly when cumulative entry volume crosses **50,000 SOL** — the same milestone that ends the bootstrap emission phase — so the pool opens as the protocol enters its growth phase. The launch price is fixed mechanically: $$ p_{\text{launch}} = \frac{\text{pool SOL}}{\text{premint}} = \frac{500}{500{,}000} = 0.001 \text{ SOL} $$ The token launches **entirely from game activity** — no founder capital and no insider supply. After launch, the buyback first deepens the pool as protocol-owned liquidity, then switches to continuous buy-and-burn; the market sets the price. *** ## Supply Dynamics **Emission:** variable — scales with entry volume, capped per race. **Sinks:** * **Buyback-and-burn** (1% of volume): the dependable, volume-funded supply sink * **Jackpot burns** (10% normal / 50% super of winners' staked tokens): a secondary sink that depends on staking behavior Both the emission and the buyback scale with volume, so the buyback offsets issuance by construction — the balance is set by the chosen rates, independent of the activity level. No fixed supply target. Net supply growth is moderated by the volume-funded buyback and the jackpot burns. *** ## Token Accumulation Your token earnings depend on your **percentage of race volume**: Consistently enter \~1-2% of race volume **Result:** Steady token accumulation, builds long-term jackpot equity Consistently enter \~5-10% of race volume **Result:** Faster token growth, meaningful jackpot shares sooner Consistently enter >10% of race volume **Result:** Rapid token accumulation; a large staked balance means large jackpot shares — but also bigger burns when you win Actual token earnings depend on YOUR percentage of race volume, which varies based on other players' activity. No fixed predictions possible. *** ## Strategic Considerations **Goal:** Build the largest staked balance **Strategy:** * Enter consistently (volume matters, not wins) * Play many races and stake what you earn * Don't focus on winning — tokens are distributed to all participants **Result:** A large staked balance means a larger jackpot share when you eventually win **Goal:** Avoid burns while playing **Strategy:** * Back horses less likely to win 1st * Focus on 2nd/3rd place strategies * Keep accumulating tokens but rarely become eligible for jackpots **Trade-off:** Miss jackpot opportunities to preserve tokens **Goal:** Win jackpots frequently **Strategy:** * Back favorites (highest 1st place probability) with a meaningful stake * Accept 10-50% burns as the cost of winning * Rebuild your staked balance between jackpots **Result:** Frequent jackpot wins but lower long-term token accumulation *** ## Value Proposition ### For New Players * Start earning tokens immediately * Build holdings through consistent play * Even a small staked balance contributes to your jackpot share ### For Long-Term Players * A large staked balance is a significant jackpot advantage * Jackpot share scales with entry × (1 + λ·staked HORSE) * Rewards loyalty and sustained participation ### For Whales * Large entries = large token earnings per race (up to the cap) * Can accumulate and stake tokens quickly through volume * But burns also affect large holders more *** ## How Your Jackpot Share Is Calculated One formula: your share is proportional to `entry × (1 + λ × staked HORSE)`. **Entry factor (the ticket):** * Linear skin-in-the-game — a real entry on the winning horse is required * Blocks "dust sniping": a negligible entry earns a negligible share * Pays a base share even with zero stake — no committed winner is shut out **Staked-token factor (the multiplier):** * Linear boost — each additional staked token adds the same increment, no diminishing returns * For any meaningful stake the boost dominates: serious stakers effectively compete on entry × λ·staked HORSE * Maximizes both your share **and** the tokens placed at risk for the burn **Optimal:** combine a meaningful entry on the winning horse with a consistently accumulated, staked HORSE balance. *** ## Frequently Asked Questions No. Tokens persist in your account indefinitely unless burned through jackpot wins. You always get your entry-proportional base share of a jackpot — but staked HORSE multiplies it, and typical stakers earn an order of magnitude more per unit entered. Staked tokens are also what the burn applies to. Earning HORSE from playing and staking it are separate steps; staking has no lock-up, and what counts for each race is your staked balance when its entries close. Tokens continue accumulating with zero burns. Over time you build a larger staked balance that yields bigger shares IF/WHEN you eventually win a jackpot. Yes. Burns happen when claiming jackpot payouts. It's the protocol's deflationary mechanism, alongside the continuous buyback-and-burn. *** ## Next Steps How staked tokens boost jackpot shares Advanced token economics Begin earning HORSE tokens!