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%

---