Archway - The next L1 Summer from Cosmos
We will once more see a repeat of a L1 summer with a $2T MC
In the previous bull run we saw: $AVAX run 30x, $SOL run 300x
The next 100x L1 coin that I am looking at 🧵 👇
Total market capitalization of Layer-1 coins is $2 Trillion, with a daily trading volume of $94 billion.
And those top coins, you see, were the ones that benefited the most from the L1 summer from the previous cycle.
In this thread, I will be sharing my thesis for this Layer-1 built on Cosmos SDK.
TLDR thesis on $ARCH
MC at only $50M vs other L1 this is considerably very low
~90 dApps already launched
$2 million was allocated to the Dapp Treasury and earmarked for distribution among developers.
Number of unique address grew by more than 50% in Q4
Staking ratio increased to 44%
Chain supported by 99 validators
Over 1M transactions on Archway in under six months
Metrics have been incredible and developers keep building, dApps keep launching and team is shipping hard.
Here is a quick overview about what $ARCH is:
@archwayHQ is user driven a Cosmos-native L1 blockchain built to incentivize.
$ARCH tokenomics enable developers to deploy high-performance dapps that capture the value they create for the network by receiving fee-based incentives.
As developers build and launch dapps, they receive a proportional share of network transaction fees and inflationary block rewards.
@archwayHQ redefines the incentivization blockchain model through:
value capture engine, which empowers dApps to harness ongoing value creation and share in the growth of the ecosystem.
alleviating the need for dApps to resort to unsustainable, inflation-driven economic models
generate revenue from the onchain activities dApps enable
Through revenue sharing model with the developers where thier users pay per use, over $18,000 was paid out.
@archwayHQ is huge with $2M and growing with more network usage.
At the hands of the community discussing how to best utlize the treasury.
Here are some factors which particularly attracted me is its value capture engine, where Archway came up with a highly deflationary token through:
Gas Rebates - 50% burnt, 50% go to developers
Inflationary Rewards - 75% go to validators, 25% go to developers
Contract Premiums - Devs can set their own contract premiums (0 ARCH by default)
Gas Rebates
Unlike other PoS L1s, Archway only burns 50% of collected gas fees while the remainder is distributed among dapp developers.
Archway splits gas fees between dapp developers and validators
Devs love it because they will get 50% gas rebates.
They are incentivized to build useful products to attract users and becomes a flywheel effect.
Inflationary Rewards
Unlike other PoS L1s, Archway has allocated 75% of block rewards for validators and 25% for developers.
The Archway comunity can vote for the change in block rewards anytime via governance.
Inflationary rewards are paid by a proportion of gas contributed.
Smart Contract Premiums
Many dapps require developers to handle additional costs (such as distributed storage, off-chain processing, smart contract audits, etc) beyond basic deployment.
Archway enables developers to define and collect custom fees for utilising their smart contracts called “contract premiums”
Developers can price their contracts/services based on thier operational needs.
Contract premium is embedded directly into Archway’s network fees, so users will view and approve a combined fee when signing transactions.
dApp and developers can also allocate their rewards in any way they want, such as redistributing them to their users or communities.
This reward system gives developers various options for growth:
Subsidize Gas Fees.
Support for Core Development Team.
Fund a DAO.
Rewards minings
DeFi ecosystem projects:
@axvdex: the main DEX with Protocol Earned Liquidity, stable swaps, and more.
@liquid_finance: Native liquid staking protocol with auto-compounding.
@peerswapotc: Cosmos OTC platform for trading tokens and NFTs.
@eris_protocol: Multi-chain liquid staking protocol
@sudostake: Vault platform with socialfi aspects
Infrastructure projects:
@archidapp: Archway name service that supports Web2 identity verification.
@Nomos_Multisig: Multisig (similar to Gnosis Safe).
Last point which makes me most bullish is that @phi_labs is a a contributor for@archwayHQ which raised $21m from multiple VCs on March 22..
Twitter: https://twitter.com/arndxt_xo/status/1766119034427466140