Archethic Blockchain Burns 90% of their Native Tokens — a Crypto First
The project has adopted a deflationary tokenomic model to ensure network sustainability.
A new blockchain project called Archethic has become the first project to burn 90% of their total token supply — within just 6 months of launch of their Mainnet Beta.
The unprecedented mass burn of the $UCO token is a decision made in order to ensure the long-term sustainability of the project, based on the analysis of simulations comparing the circulating supply of their token to the future fully diluted supply. The simulation found a divergence from market standards which was affecting investor trust.
“Our commitment, first and foremost, is to the self-sustenance of our network without compromising trust,” said Archethic CEO Sebastien Dupont. “We have big goals of seeing this blockchain being real-world use, and we won’t risk anything which might compromise that.”
With an initial $UCO token supply of 10 billion, Archethic is left with 1 billion $UCO tokens post-burn, which have been redistributed to ensure a deflationary tokenomic model. Cryptocurrency tokens that have a permanently limited supply, such as Bitcoin, are deflationary by nature. This ensures the token will never be affected by inflation, which is something that plagues all fiat currencies that are repetitively minted by their issuing governments.
A look at the tokenomics breakdown
The new tokenomics for Archethic ensures a controlled average annual inflation rate of 10.93% until 2030, after which inflation will be reduced to just 0.5% until the year 2080. At this point, no more tokens will be made available.
The new token distribution breaks down thus:
Network Funding (38.2%): This includes the circulating supply of 216M, remaining will be used to fund the future blockchain development.
Adoption Rewards (23.6%): Controlled by DAO, this wallet is dedicated to promote the use of the Archethic Public Blockchain (incentives for core & dapps developers, grants for new services and rewards for end users by using services).
Team & Advisors (14.5%): 2 years cliff from TGE (Token Generation Event) with 60 months linear release with holding incentives & 3 years Cliff from TGE + 60 Months linear release.
Stacking Rewards (9%): 9M UCO per year distributed amongst people staking.
Exchange Liquidity (5.57%): CEX & DEX Liquidity.
Dynamic Miner Reward (3.34%): Supplements the transaction fees to pay fixed miner incentives until transactions fees > miners rewards. This pool helps the network through the bootstrap phase leading to equilibrium and deflation.
Gamification & Geo Incentives (3.44%): Used to reward nodes in the parts of the world that are not on the network and also reward the network participants for being hooked-on the network. Gamification would be at the heart of achieving both the objectives.
Foundation (2.13%): Non-profit in order to manage decentralized governance of the public blockchain.
Built for use in day-to-day life
The Archethic blockchain is highly scalable and especially suited for use in industries like communications, marketplaces, retail, that require scale, where most other blockchains struggle to find actual use cases. It achieves this through a unique consensus protocol called ARCH (Atomic Rotating Commitment Heuristic) Consensus capable of up to 1 million transactions per second. The team claims it is capable of handling the current mining power of the Bitcoin network while consuming 3.6 billion times less energy.
The blockchain also enables streamlined biometric Decentralized ID (DID) smart contracts authenticated by fingerprint recognition, another key strength they plan to implement in industry use cases. A smart contract is a contract with preset terms programmed to self-execute when run — Archethic has user identification smart contracts hard-coded into it. They back this capability with high safety standards on par with the aviation industry — the Archethic blockchain is capable of functioning without error even when up to 90% of its network is compromised by malicious actors.
“Archethic provides an ecosystem that is ready for various industry use-cases,” Nilesh Patankar, COO said. “During the bootstrap period, token inflation will be balanced by deployment of pervasive use-cases leading to mass adoption and hence token usage. The token economics designed now will maintain the fine balance between inflation, equilibrium and deflation.”
Further benefits of the Archethic blockchain
There are many other reasons that Archethic is an ideal blockchain for real-world use. In addition to being the fastest, most secure and most environmentally-friendly blockchain, Archethic is also very programmer-friendly, cheap to use and ideal for use in NFT, communication, identity verification and other common applications.
Archethic’s smart contracts are being touted as the most advanced in the industry but also very easy to program with. They are based on the concept of Unspent Transaction Output (UTXO), an abstraction of cryptocurrency remaining after each transaction, which ensures high accountability. Archethic’s network, biometrics and smart contract architecture is backed by 12 international patents.
Transaction fees are also guaranteed to remain low, priced at around 0.1% of each transaction amount and kept in check with both upper and lower thresholds. Users won’t have to worry about running into ridiculously high transaction fees as the UCO token grows in market value, a significant problem that now stymies the Ethereum network.
For NFT marketplaces built on Archethic, management of royalty payments, access and exploitation rights is natively integrated. As the blockchain has been specifically built from the ground up to accommodate modern use cases, it is able to make every related process much smoother than other blockchains.
The blockchain is also suitable for custom-build applications such as Decentralized Web & Decentralized Mail. In fact, the team boasts it is capable of the most secure email solution possible, with all data being encrypted and stored only once, no matter how many recipients are involved.
Communication will also be made more secure through the aforementioned fingerprint DID. Archethic’s biometric DID capabilities will also make it capable of providing instant, unforgeable identity authentication to institutions such as banks, universities and hospitals, or any other third party. DID is made possible across international borders, without any privacy disclosure whatsoever.
With Know-Your-Customer (KYC) protocols becoming more and more commonplace as the planet’s governments scramble to keep tabs on an ever-intermixing global economy, DID is set to become very important in the coming years. Archethic is well-positioned to tackle this growing need head-on.
The use of Archethic Blockchain is unlimited and there are already more than 25,000 holders of the native UCO token. The team is growing fast and by 2022 the full deployment of the Archethic network, which will allow ERC-20 tokens to be moved to Archethic, will happen. The team also plans to exponentially grow the number of token holders by then and attract tech and R&D talent to further grow its presence across the world.
With a talented and experienced team of tech professionals, R&D, marketers and business development personnel, Archethic seems poised to create a new generation of blockchain that is sustainable, scalable, secure and inclusive.