Tokenomics

Arch is designed to create a sustainable reward loop for the ARCH token.

🌐 Overview

ARCH is the utility and value-accrual token at the center of the Arch protocol. All protocol activity — from swaps to stablecoin operations and yield trading — is designed to funnel value back to ARCH stakers, creating strong, sustainable incentives for liquidity providers and power users.

By staking ARCH, users receive xARCH, a fee-bearing token that gives holders exposure to the full economic engine of the Arch ecosystem.

🔁 Unified Fee Model

The Arch protocol integrates three revenue-generating components:

  • DEX Fees from swaps on Algebra V4 pools

  • Stablecoin Yield from M0-powered RWA reserves (USDa)

  • Yield Trading Revenue from exclusive integrations with a fully audited yield engine

All three are structured to channel protocol value into xARCH via:

  • Fee redistribution

  • Staking rewards

  • Buy-and-stake mechanics (if applicable post-launch)

🧠 Fee-Backed Token Design

Instead of siloing fees per product, Arch aggregates protocol revenue into a unified value stream directed toward xARCH. The result is a flywheel where:

  1. Higher usage = more protocol fees

  2. Protocol fees flow to xARCH holders

  3. xARCH becomes more attractive to LPs, whales, and repeat users

  4. More demand = deeper liquidity and usage

  5. Cycle repeats

This architecture ensures ARCH’s value is proportional to platform growth and usage, not just speculative emissions.

💰 xARCH: Fee-Bearing, Ecosystem-Linked

Staking ARCH converts it into xARCH, which receives:

  • A share of swap fees across all Arch pools

  • Exposure to RWA stablecoin yields (e.g. T-bill-backed USDA)

  • Revenue from automated yield trading strategies

  • Bonus emissions during bootstrapping and launch campaigns

This positions xARCH as an attractive asset for:

  • LPs seeking compounded real yield

  • Governance participants

  • Yield-maximizing whales and DAOs in the Botanix ecosystem

📊 Token Allocations

We've allocated the ARCH token supply to maximize the rewards available to the community while retaining the incentives necessary for continued growth.

  • Incentvies & Community: 45%

  • Treasury: 15%

  • Team: 20%

  • Investors: 15%

  • Reserve: 5%

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