A quick overview of Archway, a value capture chain that will be publicly sold on Coinlist

By Joy, PANews

CoinList will start the Archway (ARCH) token sale at 23:00 on June 15, Beijing time. With the token sale, Archway officially begins the journey of value capture.

Archway is a native Layer1 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 returns. 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 resolved so far. Dapps cannot really benefit and participate in the value capture of L1, and they create for L1 proportional to the value of .

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, 1confirmation, IDEO CoLab, Figment, Blockchain Capital, Wintermute, Chorus One, stake.fish, Lemniscap, Cosmostation and Hypersphere Ventures participated in the investment. The founder of Phi Labs, Griffin Anderson, has been a contributor to Ethereum since 2015. He served as the senior product director of Consensys.

What is the value capture chain

In short, it is to benefit from the value created on Layer1. At present, the main value capturers on Layer 1 are miners, or large-amount token holders/pledgers, but Dapps that provide value for the ecosystem on the chain and continuously promote the growth of L1 value through user payment of Gas fees do not directly Enjoy these value captures.

A value capture engine is included in the Archway protocol, 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 inflationary tokens, and additional security deposits. This way developers will earn a sustainable income directly driven by the value they bring to the network.

Dapp developers on Archway will earn 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 by time distribution to the wallet address of each relevant smart contract.

As an example, if a developer builds a stablecoin project using Archway's infrastructure, every time a stablecoin is transferred, the network will programmatically send ARCH tokens to its creator. Additionally, whenever 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 the stablecoin is used on another Dapp on Archway, both the stablecoin issuer and the calling contract will get ARCH.

There are a number of ways project owners can implement these ARCH rewards to improve the economics behind minting, transferring, and burning stablecoins. For example, stablecoin issuers can decide to put their ARCH rewards into a reserve pool, and these ARCH tokens can be used for certain DeFi operations through issuance/transfer.

ARCH TOKEN USES

Use cases for the ARCH token on the Archway Network include:

• Security: ARCH will secure the Archway blockchain through staking. Token holders can choose to become delegators by staking their ARCH to Archway's validators, whose shared responsibility is to verify transactions and maintain 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. Meanwhile, delegators and validators will be able to vote on proposals in proportion to the amount 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 distribution proceeds: ARCH tokens will be programmatically distributed to developers block by block based on smart contract usage.

The Archway Foundation recently launched a grant program to support the growth 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.

In fact, strategies that might have succeeded in the early days of the cryptocurrency community are unlikely to work today, and most platforms compete similarly in many technical areas. In Archway's view, both users and investors want to understand the actual key differentiators in the operating model. In the long run, the existence of a financial model that is fair to all stakeholders may be a key winning factor. A sustainable business model will provide continuous driving force for the development of the community.