Analyzing the ARC economic model, how to create a perpetual motion machine for DeFi wealth?

ARCAug 03, 2024
Analyzing the ARC economic model, how to create a perpetual motion machine for DeFi wealth?


Algorithmic Intelligent Architecture (ARC) is the world's first Web3 intelligent financial platform built on an intelligent computing integrated service network. Its mission is to create a permissionless global financial product spread-hunting platform through intelligent computing technology and blockchain smart contracts, allowing users to maximize their returns in a safe, transparent, and efficient environment.

By running the on-chain program automatically in an AI-intelligent, completely uninterrupted manner and based on smart contract technology, ARC can achieve digital contract binding between the platform and users, and between users, and users can continue to earn income from the network based on contract assets. The ARC platform has several significant technical advantages, which also directly revolve around its unique digital contract strategy, providing users with efficient, secure, and transparent financial services:

  • A platform for intelligent development

ARC achieves intelligent scheduling and optimal allocation of computing resources through its AI data engine. The AI data engine can analyze market dynamics and user needs in real time, ensuring the efficient operation of the system in a high-concurrency and complex trading environment. This intelligent resource allocation not only improves system performance but also reduces the complexity of user operations, making the investment process simpler and more efficient.

  • Eternal Digital Contract

The ARC platform creates immortal contracts through smart contract technology. These contracts exist permanently on the blockchain and cannot be tampered with. The immortal contracts ensure the transparency and security of all transactions and profit distribution. Through the immortal contracts, users can enjoy continuous profit protection and enhance their trust and reliance on the platform. 

  • Income packaging strategy and unlimited dividend capability

ARC adopts a yield encapsulation strategy to encapsulate and distribute users’ investment returns through smart contracts. This strategy can automatically distribute returns based on users’ investment portfolios and market performance to ensure fair returns. At the same time, ARC has designed an unlimited dividend mechanism, and smart contracts automatically execute dividend strategies to ensure that users continue to receive returns and maximize users’ long-term investment returns.

  • Multi-chain liquidity support

ARC supports a variety of mainstream blockchain networks, including Ethereum, Polkadot, Binance Smart Chain, etc., and realizes asset interoperability and transactions between different blockchain networks through cross-chain technology. Multi-chain liquidity support improves the liquidity and investment flexibility of user assets, allowing users to freely invest and trade on different blockchain networks and enjoy diverse investment options and an efficient trading experience.

  • Full industry coverage and distributed computing network
  • ARC uses a distributed computing network to integrate idle GPU resources around the world into a powerful computing resource pool, providing continuous computing support for AI, machine learning, and other fields. The distributed computing network reduces computing costs and improves the utilization efficiency of computing resources in a decentralized manner. In addition, ARC's platform design is highly flexible and scalable and can cover multiple industries and application scenarios, including DeFi finance, AI and machine learning, the Internet of Things (DePin), and the digitalization and decentralized management of real-world assets (RWA).

Based on this, the ARC platform provides users with an efficient, secure, and transparent Defi investment platform to help users maximize their returns and promote the further development of the Defi market. These technical advantages not only put ARC in a leading position in technology but also significantly improve users' investment experience and trust.

 

ARC Eco-Economic Model


ARC also defines the name of its platform circulation certificate asset as ARC, which is a Web3 native asset that supports EVM environment programming and is also the core asset for ARC ecosystem users to capture revenue.

The total number of ARC tokens is 5.1 million, of which 4% is used to add to the liquidity pool, and the remaining tokens are allocated in proportion to ecological user incentives, including 2% for community airdrops, 1% for consensus node dividends, 1% for community election dividends, and 92% for the contract pool

Extreme deflation

From the perspective of the ARC token itself, it is designed to be an extremely deflationary asset.

  • In the ARC system, any transaction of ARC tokens will deduct 1% transaction tax, which will be used for the repurchase and destruction of ARC tokens;
  • Whenever there is a withdrawal of liquidity from the liquidity pool, 30% of the withdrawn ARC assets will be destroyed.
  • In the liquidity pool, 0.5% of ARC tokens will be burned every 24 hours.

 In other words, ARC tokens are in a state of automatic destruction every day, and the trading of ARC tokens and the withdrawal of LPs will continue to accelerate the destruction of ARC tokens, and eventually ARC tokens will deflate to 51,000 tokens.

 This also means that under extreme deflation, the ARC token itself is constantly concentrating its value. Even if users only hold ARC tokens or become long-term LPs, they can expect to gain continuous benefits from the growth of the ARC token price itself.

On the other hand, the ARC ecosystem also provides users with many ways to gain benefits, so that users can continue to capture value from the dividends of ecosystem development.

User income method


From the perspective of user income, in addition to holding ARC tokens and continuously obtaining passive income through token appreciation during their continuous destruction, users have a variety of active income methods in the ARC ecosystem, including purchasing digital contract asset dividends, promotion, and becoming consensus nodes.


  • Purchase Contract

ARC's digital contract assets provide users with stable and continuous income guarantees through the creation of eternal contracts, income packaging strategies, and unlimited dividend capabilities, of which 92% of the total ARC tokens are used for contract pool incentive distribution.

When creating a contract, users need to first reserve digital contract assets, that is, pay 30% of the reserved contract amount to the platform's Dapp. This part of the funds will enter ARC's LP liquidity pool on DEX by default, and users can generate additional LP transaction tax dividend income through this part.


When users purchase and configure digital contract assets, there will be a time difference between the matching of funds and platform computing power assets. Therefore, after users successfully reserve digital contract assets, the platform will enter a 48-hour asset matching period. After the end, users need to pay the remaining 70% of the funds within 24 hours to complete the entire digital contract order. Overdue orders will become invalid and need to be rebooked. It should also be noted that each order cycle is 7*24 hours, and it must be renewed after the end. A 5% handling fee will be deducted from the income collection.

After the order is completed, users can start to earn income, including rewards from the 1.2% daily yield of digital contract orders and LP transaction tax dividends. Digital contract rewards will be issued in the form of ARC tokens.

The transaction tax dividend will be based on certain time points, including:

  • 5000 trading volumes trigger a dividend.
  • When the number of LPs reaches 1,000 or more, a dividend will be distributed once every 10,000 transactions.
  • When the number of LPs reaches more than 2,000, a dividend will be triggered once the transaction volume reaches 20,000.
  • Maximum transaction volume of 20,000 triggers once

It should be noted that the number of LPs is not the coin holding address, but the number of LPs in the liquidity pool.

  • Promotion income 

Users can also invite other users to join the ARC ecosystem to earn income through promotion. When a user completes an order for a digital contract, he will receive an exclusive digital contract order voucher and a promotion link. The invitation relationship generated through this promotion link will be forever bound to the smart contract, and the income generated through the promotion will be permanently valid along with the generation of digital contract income. It should be noted that users must complete the entire digital contract asset order before they can obtain the promoter's income, and all income rewards are related to the income of the invited user, not the purchase amount. If the invited user does not receive the income through Dapp, the promoter cannot obtain the income.

In the promotion income section, ARC will default to 4 levels of promotion income, with the rebate ratio being 15% for direct sharing income, 10% for indirect sharing income, 5% for third level income, 2% for fourth level income, and 2% for fifth to twelfth level income.

Every time a user shares a valid address, he or she will enjoy an extra layer of benefits. For example, directly sharing one valid address will enjoy one layer of benefits, sharing two valid addresses will enjoy two layers of benefits, sharing three valid addresses will enjoy three layers of benefits, and sharing four valid addresses will enjoy four layers of benefits. When a user directly promotes 5 different users to complete the purchase of digital contract assets, 12 layers of tiered benefits can be activated.

In addition, when the referrer has no contract, it is an invalid address, which triggers the tightening mechanism, and the referrer will no longer enjoy the invitation reward of the downline. The invitation reward of the downline will be obtained by the referrer's superior. When the referrer makes a contract again, the invitation reward will be restored and the income will continue. Therefore, the dynamic income is a percentage of the static income.

  • Become a Node or Run for Community

Users can also become consensus nodes to earn income, and 1% of the total ARC tokens will be used for consensus node incentives.

Consensus nodes are important community units in the ARC platform. In the early stages of platform development, only 51 consensus nodes will be allowed to exist. The income of the node comes from the consensus node dividend pool in the token distribution. To become a node, the node user needs to complete a community performance of more than 20,000 US dollars to obtain node qualifications. The reward is distributed in a fixed amount every day. The basic principle of the consensus node incentive is early come, early served, first come, first served.

When all 51 nodes are activated, the number of ARC tokens each node holder can obtain daily is:

Consensus node dividend pool accounts for 1% of the total token share = 51000 * 0.5% released every day = 51 = 5 ARC.

For users whose community performance reaches 15,000 US dollars, if their total performance can rank within the top 51, they can receive daily rewards from the election pool through the weighted dividend community. 1% of the total ARC tokens will be allocated to the community election pool.

The income standards are as follows:


  • 0.3% of the daily dividends in the community campaign dividend pool (1% of the total token share) is used as a standard to generate a community campaign incentive pool.
  • The community campaign incentive pool * time coefficient of 10% is used as the daily incentive distribution standard for qualified users.
  • The time coefficient increases month by month, from 10% in the first month to 60% in the sixth month, and then stops increasing.

It should be noted that after the distribution of ARC tokens belonging to consensus nodes and community campaigns is completed, there will be no more special income.

When the number of nodes is less than 51, the excess ARC reward share will flow back to the node pool, and the consensus node reward will continue until the ARC in the node pool is distributed.

Based on a series of active income models, users can earn ARC tokens continuously. With the accelerated growth of the ARC ecosystem value and the continuous deflation of ARC tokens, the ARC ecosystem will continue to create a perpetual motion machine for DeFi wealth.


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This article is for informational purposes only. It is not offered or intended to be used as investment or other advice.

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