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Tokenomics

Spec

  • Symbol: AARK
  • Network: Arbitrum
  • Standard: ERC-20

Distribution

Genesis Incentives

Genesis Incentives are allocated to community members that contribute the most to the early stages of Aark Digital. Genesis Incentives will be used for various purposes as below:
  • Rewards for Early Bird AALP and Point Mining (distributed at TGE)
  • Rewards for events before TGE (linear unlock for 2 months after TGE)

Community Rewards

Community Rewards will be allocated for:
  • Trade Mining*
  • Token Staking
  • Early Incentives
  • Rewards for community contribution before and after TGE
*Trade Mining rewards will be categorized into two parts: 1) Base Mining Rewards, where a portion of the allocation will be distributed as flat base rewards, and 2) Triggered Mining Rewards, where the entire allocation is distributed once specific trading volume thresholds are met. Details are to be announced before the beginning of the Trade Mining season.

Early Investors

Early Investors allocation is for investors that have participated in the Seed investment round. Details of our amazing backers can be found here.

Future Investors

Future Investors allocation is for opportunistic fundraising in additional investment rounds.

Team

Team allocation reflects the Aark Digital core team’s share.

Ecosystem

Ecosystem allocation will be used for:
  • Airdrop for Testnet Users
  • Future Contributors
  • Partnerships
  • Ecosystem
  • Marketing Campaigns
  • CEX/DEX Liquidity
  • DEX LP Rewards

Core Contributors

Core Contributors allocation will be assigned to individuals/entities supporting Aark Digital in the initial phase.

Advisors

Advisors allocation represents the rewards for those who catalyze and give guidance to Aark Digital’s growth in various areas including, but not limited to, investments, partnerships, community, and business.
The allocation may undergo changes as Aark Digital is currently in discussions with new investors. We eagerly anticipate keeping our community informed of any developments.

Utility

$AARK has three major utilities within Aark Digital.
  1. 1.
    Governance
The rise of blockchain technology has ushered in a new era of decision-making: on-chain governance. This innovative approach empowers stakeholders to directly shape the future of a protocol through direct voting, typically using a dedicated governance token. The proposed changes are encoded in smart contracts, and if the vote passes, the modifications are automatically implemented on the blockchain, ensuring transparency and immutability.
In contrast, traditional off-chain governance relies on informal social discussions and agreements. While this method can be flexible and adaptable, it lacks the transparency and security of on-chain systems. Changes are implemented manually by developers, leaving room for potential manipulation and errors.
Here's a breakdown of the key differences:
Feature
On-Chain Governance
Off-Chain Governance
Decision-making mechanism
Direct voting through governance token
Informal social discussion and agreements
Implementation process
Automated execution via smart contracts
Manual implementation by developers
Transparency
High: all votes and changes are recorded on the blockchain
Low: limited visibility into decision-making process
Security
High: tamper-proof nature of blockchain ensures immutability
Low: vulnerable to potential manipulation and errors
Flexibility
Moderate: changes require proposal and voting process
High: changes can be implemented quickly and easily
Ultimately, the choice between on-chain and off-chain governance depends on the specific needs and priorities of a Aark. For platforms seeking high transparency, security, and community involvement, on-chain governance offers a compelling solution. However, off-chain governance might be suitable for projects requiring flexibility and rapid adaptation.
As the most pivotal feature, $AARK token holders have the power to directly shape the future of the platform through a robust governance system. This system empowers stakeholders to propose and vote on changes to $AARK's core protocols, ensuring the platform evolves in line with community desires.
$AARK stands as the cornerstone of Aark's governance framework, ensuring the platform's continued efficiency, stability, and growth. This dedicated group of stakeholders, empowered by their $AARK holdings, wields significant power, shaping the future of Aark through a series of critical responsibilities:
A. Protocol Management:
  • Building, deploying, and updating core Aark protocols.
  • Optimizing parameters including liquidation threshold, Ecosystem allocation, rewards, fee structure, audits, and others for performance excellence.
  • Application of new products including options, NFT, listings, spot, and RWA as well as features including multichain and order book.
  • Approving incentives for individuals and entities contributing to Aark's growth and development.
B. Ecosystem Oversight:
  • Qualifying new service providers to maintain ecosystem diversity and reliability.
  • Implementing penalties for service providers failing to meet performance standards.
C. Financial Stewardship:
  • Approving $AARK grants for research initiatives, community development projects, and strategic partnerships.
  • Managing the distribution of platform fees, directing funds towards Aark's treasury, development fund, and community initiatives.
D. Operational Excellence:
  • Implementing a robust bug bounty program to address vulnerabilities promptly.
  • Responding to emergencies and unforeseen challenges to ensure platform stability and user security.
E. Community Engagement:
  • Facilitating open communication and collaboration within the Aark community.
  • Incorporating community feedback into decision-making processes.
  • Fostering a transparent and accountable governance environment that empowers $AARK holders.
By effectively discharging these responsibilities, the $AARK ensures the continued success of the Aark platform, empowering stakeholders to shape the future of the decentralized finance ecosystem.
Voting power is directly proportional to your $AARK holdings, allowing you to actively influence the platform's direction.
The simplest and most effective architecture has been research and applied to foster the community's participation in the governance:
A. Hold or be delegated $AARK tokens: This grants you the right to vote on proposals.
B. Once a proposal is active, cast your vote: Your vote will be weighted based on your $AARK holdings.
Delegation empowers individuals without $AARK holdings to participate:
  • Token holders can delegate their voting rights to any representative of their choice.
  • Delegates receive voting power equivalent to the delegated $AARK tokens.
  • Delegation is valid from the current block until revoked or tokens are transferred.
This system fosters a collaborative environment where all stakeholders have a voice. By actively participating in governance, you can contribute to building a better future for the Aark.
  1. 2.
    Fee Discounts
$AARK may be staked for traders to receive tiered fee discounts. Based on the tier system, the staked amount will give categorized fee discounts in different tiers.
  1. 3.
    Ecosystem Opportunity
$AARK stakers can receive up to 40% of trading fees on Aark Digital (50% for LP, 10% for Ecosystem). These trading fees are earned in the form of USDC.
  • Stakers of $AARK will have two options for rewards: compounding and claiming. Compounding will stake your pending Multiplier Points and Escrowed $AARK(esAARK) rewards. Higher Multiplier Points will boost rewards. Claiming will immediately transfer pending esAARK and rewards to your wallet.
  • esAARK can be used in two ways. The first is that it can be staked to earn rewards on a 1:1 basis with the standard $AARK. The second is that it can be vested for $AARK over 1 year. During this period, esAARK will be converted into $AARK pro-rata per-block basis. esAARK is non-transferrable.