How Arc Finance innovate the DeFi governance model and mining approach to better realize value capture
Using automatic unlocking mining algorithm, Arc Finance is a DEX of Trade to Earn for all users of the platform through liquidity premium pooling (LPP). Arc Finance is committed to building a DeFi 2.0 Liquidity as a service (Laas) economic infrastructure and creating liquidity premium value by incentivizing users positive behaviours that are motivated by the premium mining pool protocol. By doing this the platform manage to capture the premium value to activate the market economic ecology.
Arc Finance liquidity as a service similar to market capitalization and liquidity management for projects by mobilizing users liquidity. Arc Finance mobilization measures are mainly accomplished through liquidity premium pooling mining pools, use all sorts of positive influence for users to actively improve capital utilization. These include LP unlocking mining, accelerated unlocking a under automatic unlocking mining and staking revenues e.t.c.
ARC is Arc Finance’s platform token with a total issue of 100 million ARCs, 69% of which will be shared to users as incentives through mining. Arc Finance does not set ARC as the governance token, instead it uses ARC as mining incentives to solidify the sustainability of Liquidity premium mining. Arc Finance charges a 3% transaction fee for each transaction and of these fee, 20% is used to repurchase ARCs. The tokens repurchased are not directly burned, but injected into a recycling pool to ensure sustainable revenue for users. The existence of a recycling mining pool captures the value of the liquidity premium.
By holding ARC, users can get help including transaction fee refund, IDO participation eligibility, and early promotion rewards. While recycling the mining outputs, Arc Finance also sets a deflationary tokenomics model for ARC tokens. Given that Arc Finance’s Laas service for startup projects is very appealing to start- ups, the frequency of IDO can go to a high level and the ARC deflation process may be surprisingly fast.
The governance of Arc Is different from other DeFi projects in that it belongs to the LPs of Arc Finance. According to the governance model of Arc Finance. Community nodes can act as proposal initiators and any user can obtain the right to vote for the DAO governance by staking LP credentials. When the number of LPs staked reaches the standard or higher, they are eligible to participate in the election of community nodes.
The weight of users vote is proportional to the number of Liquidity pools staked and each LP staking credential is equal to one vote. Users receive a small share of all time transactions based on the number of Liquidity poolings staked. This income is the extra reward for their participation in the platform governance.
Platform tokens for most DeFi protocols also function as their governance tokens and some incorporate transaction fee dividends for the value support, but disregard of governance after attracting initial users with liquidity mining, most platform tokens are dismissible. Value is supported by the community consensus that is hard to attain.
Arc Finance creatively integrates ARCs tokenomics into it business operation and user incentives, which provides not only stronger value support, but also better resilience. It is a brand new liquidity management model for DeFi 2.0.
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