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Sharing half of our revenue with token holders
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INTRODUCTION
You’ve probably heard this mentioned many times, during our frequent AMAs and all over crypto Twitter.
“Half of ARC’s revenue will be shared with token holders”
With development work progressing well on our revenue sharing system, we thought now would be a perfect time to share some details and to clarify that 50% is just the start, and ARC will effectively be paying out up to 60% of all fee revenue generated! Excited? Read on to learn more!
HOW IT WORKS
Every time a transaction is placed through ARC, a tiny fee is levied on top of the prevailing exchange or network charges, which varies based on the type of transaction (CEX/DEX/Farm/Pools etc). Our super-optimized smart contracts crafted by some of crypto’s best developers allow your transactions to be executed as efficiently as possible, so that even with this small fee you get to continue enjoy the significant savings you’ve come to know and love.
Once our revenue sharing system goes live, half of this fee revenue will be retained by ARC and used to continue development and promotion of our revolutionary multi-market aggregator system, while the other half will be returned to holders of the ARC token in proportion to the number of tokens held. For example, a wallet holding 1% of the token supply and would be entitled to receive 1% of the shared revenue, that is 0.5% of the total revenue.
CURRENCY
Some other projects have similar processes in place — they might burn their tokens by making purchases on the open market to drive the price up which all sounds very exciting. But the problem with tokens burns is that investors are required to regularly monitor the token price as it (hopefully) increases and sell their own tokens to realize this benefit, which then in turn ironically creates downwards price pressure.
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At ARC we’re all about giving our investors maximum choices to better advance their financial freedom, so our revenue share system will not involve the ARC token at any stage and will instead be paid out in a stable currency. Of course, you’re free to use your portion of the shared revenue to purchase ARC yourself. But if you choose not to that’s fine too, as this revenue stream will continue to be paid out based on your prevailing token share — all regardless of whether the price of ARC goes up or down.
ARC provides passive income that you can really count on!
Our stable currency revenue share is still expected to have positive price pressure of course. As the system volume and hence revenue builds up over time, purchasing ARC tokens to receive a steady flow of income will become a more and more attractive proposition to investors.
GROWTH
We expect the growth of ARC system usage and hence revenue to follow an exponential curve, a pattern that we’re unfortunately all familiar with from the events of the past couple of years! While this exponential curve may sound exciting at first, it is important to understand that a prerequisite for the eventual surge we’re all anticipating is an initial prolonged period of only incremental gains.
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As a result we would caution investors to not expect a meaningful flow of revenue once the system is initially switched on. Mass adoption relies on two main components — a fully developed product, and awareness (marketing) of said product. For now, we are continuing to funnel our efforts and funds into maintaining and even improving our blistering pace of product releases.
FORECASTS
At this stage we are also not publishing any detailed forecasts, although with our goal being to aggregate the entire crypto market, not just DEX swaps and not just CEX transactions, safe to say there will be sufficient transaction volume to go around. An important consideration to note is that revenue is correlated with volume, not price or change in price. It’s a steady throughput of buys and sells that will deliver revenue, regardless of whether said transactions are made during a raging bull market or a frantic sell-off.
As an example, consider the following theoretical calculations. These figures are for illustrative purposes only:
→90,000 transactions per day
→An average of $5 per transaction collected
→$164,250,000 annual revenue
→$82,125,000 shared with $ARC holders every year
→Holding 1% of the supply would return $821,250 annually
→Holding 0.1% of the supply would return $82,125 annually
DEVELOPMENT PATHWAY
Just like our dApp, revenue sharing will initially be rolled out as an MVP Alpha, with progressive enhancements culminating in a v1 update in the future. We believe that this release schedule is the optimal outcome for investors since it allows revenue distribution to commence as soon as possible.
ALPHA RELEASE
Initially, revenue share can be thought of as an extension of Farms. At regular intervals, wallet snapshots will determine revenue share eligibility. Revenue will then regularly accrue in a pool, and by connecting your wallet to the pool your share can be withdrawn at any time.
TOWARDS V1
With the Alpha initially operating on the ETH network, one of the first improvements will be to integrate a lower-cost network to facilitate effective distribution to smaller wallets. The ultimate end goal for revenue share distribution once volume builds to a meaningful amount is to implement an automatic periodic airdrop made directly to wallets. Tokens staked in the ARC platform and LP tokens contributing to ETH/ARC liquidity will also be tracked and eligible.
There is no requirement to stake tokens to be eligible for revenue share
More details will be shared on this as development progresses.
CLOSING THOUGHTS
We did say that as much as 60% of fee revenue would be redistributed, and that’s where our multi-tiered referral system comes in. Up to 10% of every transaction fee will be paid out across multiple referral tiers, and some maybe even as a rebate back to the user making the transaction!
Referral revenue is earned on top of the 50% revenue share
Keep an eye out on our social channels and participate in our community Discord to be among the first to hear the latest updates about ARC’s revenue sharing, referral system, and much more!
Last modified 2mo ago