The New InvArch Network Token Economy.
VARCH is the native token of InvArch & used to power operations conducted over the network. Such operations include, but are not limited to on-chain governance to determine network upgrades & treasury management, minting NFTs on the network & establishing on-chain DAOs, and registering IP assets & deploying licensing contracts on the blockchain.
VARCH Token Utility
- DAOs deployed on the network are able to bond VARCH in order to unlock gasless transactions over the network & experience financially-free transactions that help to power their operation. VARCH is also used to cover the transaction costs of legally registering DAOs on the network with real-world business registrars. DAO operational costs are otherwise paid using the TNKR token, derived from the InvArch Tinkernet parachain.
- DAOs & individuals on the InvArch Network are able to mint advanced NFT assets optimized for servicing intellectual property needs. By paying a premium fee & bonding VARCH, IP NFTs can be registered to the network & protected under the network’s cross-chain authentication (XCA) protocol.
- The InvArch Network will feature a WASM-powered IPVM (intellectual property virtual machine) that allows for the deployment of IP-specific smart contracts known as Smart Licenses which execute & facilitate on-chain licensing agreements between 2 or more parties. VARCH is required to pay for smart license deployment & execution costs on the network.
The InvArch Network executes pseudo control over the InvArch Tinkernet, which in turn means that the Tinkernet parachain on Kusama is governed using the VARCH token on the InvArch parachain on Polkadot. Alongside Tinkernet, the InvArch Network’s infrastructure treasury is utilized at the discretion of the VARCH community via network governance. Participants who bond their VARCH through network governance receive incentive rewards provided in TNKR.
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VARCH token economy distribution
At launch, 60% of the VARCH supply will be reserved for fueling governance & infrastructure growth and will be unlocked & distributed over the course of approximately 25 years. Another 15% of the supply will go towards the network’s community supporters over various phases of the project’s existence. The remaining 25% will be used to fund the development costs of the network & fuel awareness of its technologies under its core team.
There will be a maximum supply cap of 1 billion (1,000,000,000) VARCH tokens. The distribution breakdowns can be found below:
The InvArch Association (16%):
160,000,000 VARCH will be allocated to the InvArch Association.
Half of this allocation, equalling 80,000,000 VARCH, will be locked & reserved for members of the InvArch Network’s core team. All core team allocations are locked for approximately 1 year before undergoing a linear vesting schedule by block over the course of approximately 9 years & no individual is allowed an allocation exceeding 1% of the token supply.
The remaining half of this allocation, also equalling 80,000,000 VARCH, will be withheld by the InvArch Association & reserved for future project fundraising efforts, in addition to loaning to market makers. Any tokens remaining after approximately 5 years will be reallocated toward the network’s crowdloan reserves. All tokens returned after being loaned to market makers will be redirected to the InvArch Network treasury.
Seed Supporters (7%):
70,000,000 VARCH will be distributed to the project’s early backers which helped to kickstart its development.
These tokens are limited to a cap of 10,000,000 VARCH per allocation & are provided during the network’s token distribution event. Tokens provided at this time are locked for approximately 3 months before undergoing a linear vesting schedule by block over the course of approximately 21 months.
Community Airdrop (2%):
20,000,000 VARCH will be distributed to the project’s early community which helped fuel its growth.
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These tokens are allocated & airdropped to holders of InvArch Access Pass NFTs at the time of the network’s token distribution event. When airdropped, 6,000,000 (30%) of these tokens will be immediately unlocked & the remaining 14,000,000 (70%) will be locked, undergoing a linear vesting schedule by block over the course of approximately 12 months.
[First] Polkadot Crowdloan (1%):
10,000,000 VARCH will be distributed to the project’s early supporters which helped secure its future.
These tokens are allocated to participants in the InvArch Network’s premier crowdloan on the Polkadot Network during the network’s token distribution event. These tokens will be allocated on a scaling ratio determined by the crowdloan participation rate & based on the success of reaching the project’s crowdloan cap. The crowdloan cap will be determined based on the DOT turnout of crowdloan winners immediately preceding the project’s own slot auction.
When provided, 2,000,000 (20%) of these tokens will be immediately unlocked & the remaining 8,000,000 (80%) will be locked, undergoing a linear vesting schedule by block over the course of approximately 24 months.
Crowdloan Reserves (4%):
40,000,000 VARCH will be locked & reserved for future crowdloans & maintaining the project’s status on the Polkadot relay.
Ecosystem Growth (10%):
100,000,000 VARCH will be allocated toward the project’s future community growth initiatives & its early ambassadors.
Up to 65,000,000 (65%) of these tokens will be distributed to members of the InvArch Embassy, which consists of the project’s hundreds of past & current community ambassadors. Any unallocated tokens will be redirected to the InvArch Embassy DAO. Tokens provided at this time are locked for approximately 1 month before undergoing a linear vesting schedule by block over the course of approximately 11 months.
The remaining 35,000,000 (35%) tokens are intended for social marketing efforts & growth campaigns, as well as incentive boosts for network events.
Governance Incentives (25%):
250,000,000 VARCH will be locked & reserved for incentives toward participants of the network’s on-chain governance system. These tokens will be subject to a decaying linear unlock schedule that last over a duration of approximately 25 years.
Infrastructure Support (35%):
350,000,000 VARCH will be locked & reserved for funding future infrastructure needs & development. These tokens will be subject to a decaying linear unlock schedule that last over a duration of approximately 25 years.
A total of 35,000,000 (10%) of these tokens will be reserved toward network collator rewards, and the remaining 315,000,000 will be reserved toward the infrastructure treasury which is governed by the network’s token holders.
InvArch Governance & Infrastructure Development
The purpose of governance incentives & an infrastructure treasury is to foster a network that sees continued contributions & maintenance, achieved in a way that allows a broad community to openly contribute to the network while also distributing ownership over the network amongst those who provide these contributions. Additionally, it is important that the proposals receive input from a decentralized community of network users, while also providing incentives for users to participate in more complex governance procedures.
Infrastructure funds can be deployed to fund on-chain grant proposals, increase collator rewards, subsidize network services, stimulate the OCIF protocol on the InvArch Tinkernet, and incentivize new collators, among other efforts. All of which are matters that would be proposed & decided by the InvArch Network community using the VARCH token.
Transaction fees accrued over the network, rather than initially going to collators, will instead build up in the InvArch Network’s core treasury. After approximately 25 years, the funds initially allocated toward governance incentives & infrastructure support will all be distributed. At this time, the network’s core treasury & the revenue it continues to gain from the economy it powers will become the ultimate funding source for incentivizing & funding further operations.
The goal of this is to provide time for a large economy, THE economy of DAOs, to take form over the network, for a strong foundation of technical infrastructure to be established, and for a well-involved community to exist. After this time, the system shifts to where its infrastructure providers & network governors can continue to grow the network with their incentives aligned around the continued & neverending success of the InvArch Network.
This article reflects an update & change compared to earlier information provided in the network’s tokenomics. Such information on the InvArch Network will be updated in the very near future & past article(s) will be updated.