An article to understand Archway, a value capture chain that will be publicly sold on Coinlist

Original Author: Joy, PANews

CoinList; will start the Archway (ARCH) token sale on June; Month; 16; Sun; 01:;00; Beijing Time.

Archway; is based on; Cosmos; a native; Layer; 1; blockchain built with development components. In addition to the common functions with general public chains, more than 1; years 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 agreements have also tried through; Gas; rebates, token redistribution, etc., but the core problem has not been resolved so far, Dapps; can not really benefit and participate in the value capture of L1, and with them Proportional to the value created for L1.

2022; March; Archway; developer behind the protocol; Phi Labs; announces completion of $21 million seed round, CoinFund; led by Hashed, 1co;nfirmation, IDEO CoLab, Figment, Blockchain Capital , Wintermute, Chorus One, stake.fish, Lemniscap, Cosmostation; and; Hypersphere Ventures; etc. participated in the investment. Founder of Phi Labs; Griffin Anderson; has been a contributor to Ethereum since 2015; served as senior product director of Consensys; founded; Phi Labs; before the core development company of; Cosmos; Product owner.

What is the value capture chain

In short, it is to benefit from the value created on ;Layer;1;. At present, the main value capturers on Layer 1 are miners, or large token holders/pledgers, but they provide value for the ecology on the chain, and the Gas fees are paid by users to continuously promote the growth of L1 value; Dapp;s, but did not directly enjoy these value captures.

Archway; a value capture engine is included in the 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 the Gas; fee, a portion of the inflationary token, and an additional security deposit. This way developers will earn a 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 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, each 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 the ;Archway;, the calling contract and the original contract both earn ;ARCH; tokens. This means that when a stablecoin is used on another; Dapp;

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

ARCH; TOKEN USES

Archway Network; ARCH token use cases include:

• Security: ARCH; will be secured by staking; Archway; blockchain. 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; Issuance Proceeds: ARCH tokens will be programmatically distributed to developers on a block-by-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.

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.