Archway is a native Layer 1 blockchain built on Cosmos development components. In addition to the common functions with general public chains, more than a year ago, the Archway protocol proposed the idea of ​​"value capture", that is, all those who contribute to the protocol can get value in return. The idea of ​​value capture is very popular, and some protocols have also tried it through gas rebates, token redistribution, etc., but the core problem has not been solved so far, and Dapps cannot really benefit and participate in L1 value capture in proportion to the value they create for L1.

In March 2022, Phi Labs, the developer behind the Archway protocol, announced the completion of a $21 million seed round of financing, led by CoinFund and Hashed, with participation from 1confirmation, IDEO CoLab, Figment, Blockchain Capital, Wintermute, Chorus One, stake.fish, Lemniscap, Cosmostation, and Hypersphere Ventures. Griffin Anderson, the founder of Phi Labs, has been a contributor to Ethereum since 2015 and was a senior product director at Consensys. Before founding Phi Labs, he was the product manager at Ignite, the core development company of Cosmos.

What is the value capture chain?

In short, it is to benefit from the value created on Layer 1. Currently, the main value capturers on Layer 1 are miners or large token holders/stakers, but Dapps that provide value to the on-chain ecosystem and continuously drive the growth of L1 value through users paying gas fees do not directly enjoy these value captures.

The Archway protocol includes a value capture engine in the form of several new modules added to the existing Cosmos SDK modules. The value capture engine enables developers to earn a portion of gas fees, a portion of inflation tokens, and additional security deposits. In this way, developers will receive sustainable income directly driven by the value they bring to the network.

Dapp developers on Archway will receive income proportional to the value they create. Specifically, the value capture engine module enables the protocol to calculate the amount of Gas generated by each smart contract in the Dapp and directly add the percentage of tokens earned to the wallet address of each related smart contract based on time distribution.

For example, if a developer builds a stablecoin project using Archway's infrastructure, the network will programmatically send ARCH tokens to its creator every time a stablecoin is transferred. In addition, every time a contract is called by another contract on Archway, both the calling contract and the original contract will receive ARCH tokens. This means that when a stablecoin is used on another Dapp on Archway, both the stablecoin issuer and the calling contract will receive ARCH.

Project owners can implement these ARCH rewards in a variety of ways to improve the economics behind minting, transferring, and destroying stablecoins. For example, stablecoin issuers can decide to put their ARCH rewards into a reserve pool, which can be used for certain DeFi operations by issuing/transferring these ARCH tokens.

Uses of ARCH Tokens

ARCH token use cases on Archway Network include:

  • Security: ARCH will be used to secure the Archway blockchain through staking. Token holders can choose to become delegators by staking their ARCH to Archway’s validators, who share the responsibility of validating transactions and maintaining the security of the network. In return, validators and their delegators earn a portion of token inflation.

  • Governance: ARCH will become the native governance token of Archway Network. Holders will be able to propose chain upgrades, community decisions, parameter changes, etc. through on-chain governance. At the same time, delegators and validators will be able to vote on proposals in proportion to the number of tokens they hold.

  • Transaction Fees: ARCH will be used to pay fees on Archway, which will be distributed to the network’s validators and smart contract developers.

  • Dapps issuance revenue: ARCH tokens will be distributed to developers programmatically on a per-block basis based on smart contract usage.

The Archway Foundation recently launched a grant program to support the development of the ecosystem. The core team created Area-52, a free, interactive online platform that teaches developers of any skill level to build and deploy Dapps on Archway.

  • Original link: https://www.panewslab.com/zh/articledetails/zh5ljmkq.html