The InvArch Token Economy — An Overview

InvArch
5 min readMar 16, 2024

The VARCH token is the native token of the InvArch Network — used to power an omnichain economy of organization & services. VARCH has a genesis supply of 1 Billion tokens (1,000,000,000 VARCH); however, the token is subject to inflation, used to help grow the InvArch ecosystem during its early years.

VARCH Inflation Overview:

The VARCH supply is subject to a 10% annual inflation rate designed to seed new organizations & services on the network at the discretion of InvArch Network stakeholders.

60% of VARCH inflation is administered to DAOs pro rata based on their support via the InvArch DAO Staking protocol. A minimum of 250,000 VARCH (0.025% of the initial supply) in staking support is required before a DAO begins generating any rewards for itself.

The remaining 40% of VARCH produced from inflation is administered as staking rewards via the InvArch DAO Staking protocol. The same reward rate is given to VARCH stakers regardless of the DAO(s) they stake toward, allowing them to focus on staking toward what they support.

The inflation rate of the VARCH token can, and likely will, be adjusted to be lowered & follow an algorithm for inflation (and possibly burning) in the distant future via network governance if there is consensus to do so.

VARCH Allocations Overview:

The VARCH token is primarily allocated across 3 core areas — the Network, its Community, and Funding its development.

Allocations are broken down further across these areas, covering the InvArch Foundation, Early Backers, the InvArch Crowdloan, Ecosystem Growth, Strategic Backers, Liquidity Provisions, Infrastructure, a future DAO Ecosystem Fund, and the InvArch Network Treasury. These areas can be explored in greater detail below:

Network Allocations (34%) — 340,000,000 VARCH:

Infrastructure (9.75%) — Vesting Schedule: None — 97,500,000 VARCH is reserved for collator & TSS protocol bootstrapping.

DAO Ecosystem Fund (8%) — Vesting Schedule: None — 80,000,000 VARCH is reserved for incubating new DAOs launching on InvArch.

Network Treasury (10.25%) — Vesting Schedule: None — 102,500,000 VARCH is reserved for the InvArch treasury, governed by the community.

Liquidity Provisions (6%) — Vesting Schedule: None — 60,000,000 is reserved for liquidity loans & deposits for CEX & DEX needs.

Community Allocations (30%) — 300,000,000 VARCH:

Crowdloan (5%) — Vesting Schedule: 2 year linear distribution — 50,000,000 VARCH will be provided as rewards towards its Polkadot slot auction.

Ecosystem Growth (25%) — Vesting Schedule: Varies — 250,000,000 VARCH will be provided to the community via several allocation methods:

  • It’s Grow Time Community Event (2%)Vesting Schedule: 1 year linear distribution — 20,000,000 VARCH will be airdropped to holders of InvArch Access Pass NFTs.
  • InvArch Ambassadors & Embassy (8%)Vesting Schedule: 2 year linear distribution — 80,000,000 VARCH will be provided to current & past InvArch Network ambassadors.
  • #TheFutureIsDAO Airdrop (1.5%)Vesting Schedule: None — 15,000,000 VARCH will be airdropped to early DAO Staking participants.
  • #Omniway Airdrop (1.5%)Vesting Schedule: None — 15,000,000 VARCH will be airdropped to early Omniway beta users.
  • Social Awareness Campaigns (2%)Vesting Schedule: None. 20,000,000 VARCH will be allocated via several social marketing campaigns.
  • Polkadot Ecosystem Airdrop (5%)Vesting Schedule: 2 year linear distribution — 50,000,000 VARCH will be airdropped to DOT stakers across Polkadot.
  • External Ecosystem Airdrops (5%) Vesting Schedule: 1 year linear distribution — 50,000,000 VARCH will be airdropped across at least Cosmos, Solana, and Ethereum.

Funding Allocations (36%) — 360,000,000 VARCH:

InvArch Foundation (18%) — Vesting Schedule: 5 year linear distribution — 180,000,000 VARCH will be provided to the InvArch Foundation to help fund the development of the InvArch Network & its ecosystem.

Early Backers (7%) — Vesting Schedule: 2 year linear distribution — 70,000,000 VARCH will be provided to early financial backers of InvArch.

Strategic Backers (11%) — Vesting Schedule: 3 year linear distribution — 110,000,000 VARCH will be provided to later-stage financial backers of InvArch.

VARCH Distribution Overview:

The initial 1,000,000,000 VARCH supply will be fully unlocked over the duration of a 5-year schedule featuring a combination of 1-year, 2-year, 3-year, and 5-year vesting schedules, with community vesting schedules more often towards the shorter end of the scale, funding allocations in the center, with the exception for InvArch Foundation allocations which experience a 5-year linear vesting schedule — the longest of all.

The distribution schedule above, combined with the utility of the VARCH token below, are designed to help realize a steady & stable economic environment for the InvArch ecosystem as these tokens are unlocked.

VARCH Utility Overview:

While the utility of the VARCH token will expand as InvArch does, it is immediately necessary for performing many powerful actions across the network:

  • Account Operations — VARCH is used to create & deploy both multisig & DAO accounts on the InvArch Network. Account management & governance operations require VARCH to cover transaction fees. VARCH can also be used as a universal payment asset for transacting on external networks using omnichain accounts.
  • DAO Funding (Staking & Farms) — VARCH is used in DAO Staking & DAO Farming by locking VARCH in exchange for staking rewards. Staking rewards can be redirected towards DAOs in exchange for rewards and/or benefits offered by said DAO via DAO Farming. This system is used to foster a flywheel effect where the users of gthe network help to fund the creation of new services that they will use, making the network more valuable for themselves & others.
  • Smart Contracts — VARCH is used to pay for deployment costs involving smart contracts on the network via the InvArch EVM (and eventually, PVM as well). VARCH is also used to pay for transaction fees generated by using smart contracts on the InvArch Network.
  • Gas Subscriptions — VARCH can be used to pay for monthly & annual subscription packages that provide gasless transactions to multisigs & DAOs, and their members, on the InvArch Network. Packages come in different tiers designed to accommodate organizations of varying sizes & cover networks of specific interest.
  • Network Governance — VARCH is used as a deposit for submitting proposals to the network’s governance system. VARCH is also used to vote on proposals submitted to the network by locking VARCH for various durations, dependent on a varying amount of conviction that can be used to amplify (or soften) votes.

Functions involving VARCH on other networks not included.

To catch the latest announcements on InvArch, individuals should follow the InvArch Network & InvArch Tinkernet accounts on X (formerly Twitter), check out the InvArch website, and don’t forget to hop in the InvArch Discord & join a community of nearly 30,000 members!

— Modular omnichain account management infrastructure for Web3 —

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