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Revenue Sharing: The AFT Token

Introduction

We are excited to share our revenue share token distribution plan! Revenue will be generated from our products on Acrechain and other EVM chains and distributed accordingly. The AFT token will be used to distribute revenue to the Acrechain community. The AFT token will be distributed to delegators and the public and will be used to incentivize the growth of the Acrechain ecosystem.

We are excited to announce that the total supply of Revenue Share Tokens is 25,000. We have allocated 2k tokens for delegators and 8k tokens for sale to the public, with the remainder held by the team.

How will Arable Generate Revenue?

At Acrechain, we keep a revenue share account to ensure fair and equitable distribution of profits. Revenues come from our various products, including derivatives v1 and v2 on Acrechain and third-party chains, voting power lending, and products built by third parties that provide revenue share to Arable.

For derivatives v1 & v2, 40% of the fees collected will be distributed to collateral providers (minters/borrowers on v1 - there will be no collateral providers on v2) and liquidity providers. The remaining 60% will be sent to the revenue share account.

For the voting power lending product, all revenues will go to the revenue share account.

For products built by third parties that provide revenue share to Arable, all revenues will go to the revenue share account.

We are also exploring the possibility of providing validation services on Cosmos chains, with revenues from these services also going to the revenue share account.

How will Revenue be Distributed?

Starting Q1 of 2023, AFT holders will receive 50% of the revenue generated, while 15% will be used to buy back and burn ACRE tokens. 30% will be held in our treasury, and the top 5 users in each of the following categories will receive an additional 5% of the revenue: top delegator, top liquidity provider and top trader.

The revenue share token distribution plan is as follows:

  • 50% for AFT holders
  • 15% for ACRE buyback and burn
  • 30% for treasury
  • 5% for top users (top delegator, top liquidity provider, top trader)

Who is Eligible to Receive AFT?

Delegators Share

The 2k tokens reserved for delegators will be distributed over 10 months starting from February 2023, with a snapshot taken on the first day of each month. The Revenue Share Tokens will be distributed within 15 days of each snapshot, with the Foundation wallet excluded from this process.

Public Sale

The 8k tokens reserved for sale to the public will be available in the first quarter of 2023. The price of the Revenue Share Token will be set at $375, and the sale will be conducted on Acrechain. There will be no prior private sale and it will be an announced public sale, not a stealth launch.

Team Share

The remaining 15k tokens will be distributed to the Arable team.

Utility

The AFT token will be used to distribute revenue to the Acrechain community. The AFT token will be distributed to delegators and the public and will be used to incentivize the growth of the Acrechain ecosystem.

For those that are wondering, why do we offer two tokens, ACRE and AFT? ACRE is the governance token of Acrechain, and AFT is the revenue share token. ACRE is used as the Acrechain gas token, for consensus voting power lending and to vote on proposals and to participate in the governance process. AFT is used to distribute revenue from across all of Arable's products on all blockchains we are active on to the Acrechain community. ACRE and AFT are two separate tokens with different use cases.