$ARCH buyback and rewards program: Rules of the Game
The last DAO vote on June 8 passed with flying colors (100% in favor), signifying the Archer community’s unanimous support for the 6-week long $ARCH buyback and rewards program for Archer Swap users.
If you’re as excited about this as we are, you’ll probably be curious as to what the rules of the program are, what downstream effects on token price this may have, and how to ensure you qualify for the $ARCH distribution list.
We’ll address all these points and more down below.
But first, if you aren’t familiar with Archer TEV, we recommend you spend a couple minutes reading through our recent article on the topic.
Now that we’re all pros, let’s jump right in with some FAQs and details.
High level summary?
This is a 6-week campaign, where $ARCH tokens are bought back from the market using Archer TEV profits, and re-distributed to Archer Swap traders.
Purpose of the campaign?
To reward early adopters of Archer Swap, incentivize new users to try the platform, and support demand for the $ARCH token.
Where do rewards come from?
From the revenue generated by Archer TEV. Archer TEV utilizes arbitrage bots that backrun trades to capture monetary value created by traders.
Every time someone makes a trade, there is potential to capture monetary value from arbitrage opportunities opened after the trade. These profits are used to buy $ARCH tokens from the open market (e.g. Uniswap or Sushiswap), and are then distributed to Archer Swap users.
Is this the same as an airdrop campaign?
No. In an airdrop campaign, token rewards are typically taken right from the project’s treasury reserves. In this program, $ARCH rewards are market bought using Archer TEV revenue, and then redistributed to traders. No treasury funds will be touched.
Will this cause the $ARCH token price to crash?
Unlikely. Because we are not airdropping tokens, and are instead buying them from the market with our arbitrage profits, a positive-feedback loop is actually created for price action. As more traders trade on Archer Swap, more Archer TEV is generated, and more $ARCH is bought from the market, supporting its price.
Think about it this way: If Archer buys 1,000 $ARCH from the market from its Archer TEV profits, and distributes to 50 traders — all 50 traders would have to liquidate their $ARCH rewards for the price level to be ‘neutral.’ If any portion of rewards receivers hold on to their tokens, the price level will increase.
Do $ARCH token holders benefit?
Indirectly. While token holders do not receive $ARCH rewards, they may benefit from the anticipated price level increase.
How do I qualify?
Make any trade on Archer Swap from June 4 to July 16, 2021. Rewards are proportional to the volume you transacted on Archer Swap during each weekly rewards period.
Rewards are distributed automatically — you won’t have to take any additional steps to claim your $ARCH.
When are the payouts?
Every Friday, starting June 11, and ending July 16, 2021. After each payout, the trade volume tracker resets, and a new rewards distribution list is calculated.
Where are rewards sent?
Directly to the wallet that transacted on Archer Swap.
How many $ARCH tokens will I receive?
It depends on the volume of trades processed through Archer Swap. The more swaps, the more opportunities for Archer TEV to collect profits, and the more rewards for Archer Swap users. We’ll update our Twitter with the rewards distributed during each week of the program.
Will the program go longer than 6 weeks?
It’s possible — an extension proposal could be submitted and approved by the DAO.
Are there any downsides or risks?
Basically, no! The one caveat is that you will need to approve a few contract actions to give Archer Swap permissions to function (but with gas this cheap, it’s just a few bucks). Then you simply make trades as you normally would, while enjoying Archer’s MEV shield protection, and also receive $ARCH rewards purchased using Archer TEV’s revenues.
With all these great benefits and no downside, now is the perfect time to give Archer Swap a go.
Trade like Vitalik, and get rewarded to try out one of the most advanced swapping platforms on the market.
Archer TEV. Power to the Traders.
