Policy Levers

Staking Reward Rate:

This metric determines the number of new ORI minted for stakers. The percentage of staked ORI then determines the Annual Percentage Yield (APY). The rate of bond sales combined with the reward rate determines the supply growth rate. Every ORI token minted must be backed by one unit of Risk-Free Value. The reward rate combined with the percentage of total ORI supply staked yields the APY. The APY is the primary internal metric of internal coordination. It is inversely proportional to ORIZON's health. When ORIZON is performing well, the APY will be lower because the reward rate will be lower (indicating the protocol has existed longer), and there will be a high staking percentage (indicating long-term internal confidence).

Bond Control Variable:

This measure is to incentivize the precise treasury composition that ORIZON desires. It considers what types of reserve assets it wants to back the value of ORI, such as liquidity provider assets versus stablecoin assets. Each asset has different reserve backing attributes, and these attributes must be collectively weighted to achieve healthy growth and adequately stable reserve backing. The bond control variable is an internal metric of external price coordination because it sets the discount rate for purchasing directly from the protocol rather than from third-party market makers.

Premium Over RFV:

This is not a policy lever but a market measure. The trading value of each ORI token is above the stablecoin value backing each token. This is a multiple comparable to the price-to-earnings ratio familiar to value investors. The premium is an external/price measure of internal coordination; ORI trades at a price higher than the RFV because the external market perceives effective internal coordination among ORIZON contributors. This external perception reflects investor confidence that the ORI staking ratio will remain high, contributors will continue to work for ORIZON, the protocol will expand its network to form new partnerships, and demand for ORI will remain high. Therefore, the premium over RFV is a metric of ORIZON's economic productivity and its expected future cash flows. This metric is set by the market, not directly by the ORIZON protocol, but it can be influenced by policy levers.