Tokenomics, Token Sale & Governance
ARCx’s vision is to become a governance-minimised central bank that issues credit against various DeFi assets through its native stablecoin, STABLEx. As yield becomes a core theme moving forward, the permutations of protocols x assets will explode. ARCx plans to support all of these assets to increase capital efficiency and unlock the value in assets lying idle in users’ wallets.
TLDR: The ARCx Token Sale will commence on February 15th. Phase 1 is exclusively available to early community members, and Phase 2 is for liquidity providers (past and ongoing). Read this post and visit wiki.arcx.money to learn more
Since our community-only launch in September 2020, we’ve been able to achieve the following metrics with our close knit community and very conservative risk parameters:
$15m+ in yield-bearing assets locked up as collateral
The first protocol to enable xSUSHI, ibETH and other interest earning assets as collateral
$5m+ of STABLEx liquidity on Uniswap
No loss of funds through our smart contracts
~300 on-chain addresses actively engaging with our contracts
Strong community of Know Your Farmer users and users who have accumulated XP tokens
There are 3 goals of the ARCx initial token allocation:
Aligning our community of users, core team, and investors to continue to grow ARCx over the longer term
Incentivizing STABLEx liquidity
Striking a balance: enabling meaningful ongoing incentives (e.g. yield farming) while maintaining token holder value
In the first year of ARCx, there will be a maximum of 10,000 ARCx tokens. After the first year, the community will decide how much ongoing inflation there will be. ARCx holders should expect inflation in order to bootstrap STABLEx liquidity and other initiatives in order to stay competitive with other protocols.
ARCx uses a unique continuous inflation schedule to ensure that all stakeholders earn tokens together, at the same time. The team and investors start out with zero tokens. There are no pre-allocations, only ongoing allocations. In addition, the team and investors have agreed to a six month lockup from the end of the token sale.
So, immediately after the ARCx Token Sale, the token allocation will be:
38.4% / 614 ARCx to Community (tokens already earned by users from yield farming)
24.1% / 365 ARCx to Community Treasury
12.5% / 200 ARCx sold in the Phase 1 Sale
25.0% / 400 ARCx sold in the Phase 2 Sale
After the sale, the continuous schedule inflation will kick in. Every time that new tokens are minted by the protocol, they are minted in the following proportions.
60% direct to the community - the users of ARC - as incentives for locking up collateral, providing liquidity, and other productive contributions
19.1% to the Community Treasury (controlled by ARCx holders)
15.5% to Founding Team (6 month lockup from the date of the sale, vesting over 4 years)
5.4% to Angel Investors (6 month lockup from the date of the sale)
The absolute numbers here may be different depending on the amount of incentives allocated to yield farming. The graph above is to simply illustrate that the relative allocations will remain linear and will unlock in a linear manner (with the exception of month 6)
The ARCx token will govern the Community Treasury, which will hold 19.1% of the ARCx circulating supply, plus the funds raised from the ARCx Token Sale.
Any expenditure from the Treasury, including future team hires, grants and operational costs will be approved by the community via snapshot voting, and then executed by a 4-of-6 multisig including core team and community members. We will be announcing these signatories in the coming days as we finalise more details about the Community Treasury.
Over time, we will hand off full protocol governance and implement on-chain voting control of the Treasury for token holders.
In August 2020 we raised an angel round of $437,500 from 35 crypto-native investors, with an average check size of $12,500. This was our first chance to bring a wide range of early supporters on the ARCx journey, and it gave us the resources we needed to get started.
Now, we’re excited to create opportunities for our earliest users (from the Know Your Farmer campaign) to say thank you for making a bet on ARCx, by putting up millions of dollars and your valuable time and effort testing the platform, helping us build, and growing our community.
The ARCx token sale will take part in 2 phases, occurring over the course of 3 weeks from February 15 to March 2, 2021 (UTC dates).
Phase 1 (Know Your Farmer Sale):
Sale Period: February 15th to 17th, 2021 (unless sold out sooner, UTC)
Price: $2,500 per token, representing a $25m fully diluted valuation. All buyers will pay the same price.
Eligibility: Exclusively available to all KYF verified users (Know Your Farmer v1 & v2) who participated in Farm 1, 2, 3 or 4
Amount: Maximum of 200 ARCx ($500k) available, representing 2% of total supply
Maximum per buyer: from Farm 1 to Farm 4, depending on the amount of each buyer’s KYF parcipiation
Terms: Locked until end of Phase 2, any unsold tokens will be rolled over into Phase 2
Next steps: Click here to check your allocation
Phase 2 (Allocation Mining Sale):
Eligibility period: January 15th to March 3rd, 2021 (UTC)
Sale: March 4 to March 5, 2021
Exclusively available to users who have minted STABLEx and provided liquidity for STABLEx on Uniswap or Curve for since the launch of Farm #5 (15th Feb).
Price: $6,500 per token, representing a $65m fully diluted valuation.
Amount: Maximum of 1200 ARCX ($7.8m) available, representing 12% of the first year supply (plus any remaining tokens from Phase 1)
Maximum per buyer: Calculated based on time spent providing liquidity * $ value of liquidity provided.
Terms: ⅓ of the purchased tokens will be unlocked upfront and the remaining ⅔ will be unlocked after 6 months, if there are any unclaimed allocations, they will be sold at the discretion of the ARCx team at no less than $6,500 per token
Next steps: For more details around how to earn allocation read: https://wiki.arcx.money/token-sale/phase-2-sale
We’re incredibly thankful for the earliest users: the farmers, investors, contributors and everyone else who has been on this journey with us for the past 6 months. Developing in DeFi is a gradual endeavour and we’re grateful for those that have shown patience and remained with us through this journey.
The upcoming few months are going to be very exciting as we start working on adding more assets, ARCx v3 and growing out the core team!