Background of BRC-20
We've made substantial progress in the development of Ordinals. From operating full nodes to simply clicking a few buttons for engraving, our developers have made significant contributions to simplifying Bitcoin engraving. As BRC-20 tokens continue to evolve, the introduction of staking functions has become imperative. So, how will BRC-20 tokens realize staking functions?
Arkstar, the first IDO project on the BRC chain biso ecosystem, is leading a new era of BRC-20 token staking through our innovative blockchain project. A groundbreaking staking function has been introduced on the BRC-20 protocol. This innovative feature, based on the VE(3,3) model, aims to provide users with opportunities for returns beyond transactions, ensuring safety, efficiency, and decentralization.
Pain Points of Traditional Staking Model
The traditional BRC-20 staking model has some pain points, including lack of long-term participation incentives, instability of liquidity, and risk concentration, etc. These issues limit user participation and the sustainable development of the staking ecosystem.
- Lack of long-term participation incentives: The traditional staking model lacks effective incentive mechanisms to attract long-term user participation. Stakers may lose motivation due to lack of continuous returns, leading to unstable liquidity and difficulty in sustainable ecosystem development.
- Unstable liquidity: Traditional staking models can result in staked assets being locked, unable to be quickly withdrawn. This limits the flexibility of users when they need funds, making liquidity unstable.
- Risk concentration: In traditional staking models, a few large holders or institutions may concentrate a large amount of staked assets, affecting the stability and sustainability of the entire ecosystem. This risk concentration can lead to potential unfairness and instability.
Arkstart's VE (3,3) Model SolutionTo address these pain points of traditional staking models, Arkstart introduces the VE (3,3) model, bringing the following advantages and solutions:
1. What is VE (3,3)? VE (3,3) originates from OlympusDAO's (3,3) game theory, based on Nash Equilibrium theory. Its basic principles are as follows:
- Arkstart sells tokens to users in the form of bonds at prices lower than the market, getting other cryptocurrencies (like USDC, ETH, etc.) as payment.
- This process backs the platform with valuable assets and generates new tokens, which are distributed to token holders through the Rebase mechanism.
- As more users participate in purchasing tokens, the platform increases the token supply and allocates more tokens to stakeholders.
- This creates a positive feedback loop, enabling stakeholders to achieve high annual percentage rates (APR) as the token price continuously rises.
- This mechanism relies on market users choosing to continue staking their tokens instead of selling them, known as the (3,3) game strategy.
- This mechanism encourages users to continue participating in token staking, allowing them to enjoy the benefits of continuous token issuance while reducing the risk of token dilution.
2.What has VE (3,3) solved?
- Long-term participation incentives: The VE (3,3) model provides incentives for long-term participation for stakers by designing an economic model based on game theory and Nash Equilibrium theory. This model rewards users with higher returns according to the duration and amount of their stakes, encouraging long-term token lock-in and participation in the staking ecosystem.
- Liquidity and flexibility: The VE (3,3) model allows users to stake and unstake flexibly according to their needs, enhancing liquidity. Users can quickly withdraw staked assets when needed based on market conditions and personal goals, improving user flexibility and fund utilization efficiency.
- Risk diversification and profit sharing: The VE (3,3) model achieves risk diversification and profit sharing by rewarding stakers for holding more tokens and for continuous participation. The quantity of tokens held by the staker and the duration of their stake significantly impacts returns, reducing the influence of individual stakers on the entire ecosystem, and increasing overall stability.
How to Implement Staking
Arkstart has launched a staking function on BRC-20 tokens; using 'arks' tokens for concept proofing or testing; infrastructure has been established for the staking/unstaking of 'arks' tokens; the staking function will soon be online. Arkstart aims to adopt the innovative VE (3,3) model, which ingeniously combines Curve's ve economic model and OlympusDAO's (3,3) game theory to encourage continuous staking and ensure that participants' long-term interests align more closely with the protocol's goals.
A staking function has been introduced on BRC-20 tokens, using an innovative approach. In the "deploy" method of BRC-20, we added an extra parameter called "yield". This parameter represents the appreciation of 'Aras' tokens per block.
For example, if you stake 1000 'arks' tokens in the staking pool and continuously stake for 100 blocks, you will receive a total of 1070 'Aras' tokens, of which 70 are given as rewards. This highlights the innovation of Arkstart, where users can acquire 'Aras' tokens by staking 'arks'.
In the BRC-20 ecosystem, we introduced a staking address. Users can transfer 'arks' tokens to this address via a transaction call, and then retrieve their 'Aras' tokens (including rewards) through the same call. This is our staking mechanism.
We are working diligently to create a real-time Proof of Concept (POC) called the ArkStake protocol, where you can stake 'arks' tokens and monitor the real-time update of your 'Aras' balance.
Technical Architecture of Arkstart
Arkstart is poised to revolutionize the staking model for BRC-20 tokens, building a robust and tightly-knit staking ecosystem. By blending advanced technology and innovative economic models, Arkstart provides stakers with a more efficient, secure, and sustainable staking experience, offering better returns and long-term benefits.
BRC-20 Token Staking: Arkstart has introduced staking functionality for BRC-20 tokens, allowing users to lock their tokens to earn rewards.
Integration of VE (3,3) Model: Arkstart utilizes the innovative VE (3,3) model, aligning the long-term interests of participants with the protocol's objectives. This model encourages continuous staking and ensures stakers gain high returns as the token value increases.
Staking Mechanism: Through a staking address, users can transfer their 'arks' tokens into the staking vault, and withdraw their 'Aras' tokens (including rewards) at any time. This staking mechanism provides flexibility and convenience, enabling users to effectively manage and utilize their staked assets.
Real-Time Concept Validation: Arkstart is committed to developing the real-time ArkStake protocol to showcase staking and balance updates. This protocol will provide stakers with real-time data on their staked assets and balance changes, enabling them to effectively monitor and manage their staking positions.
By integrating the VE (3,3) model, Arkstart's staking ecosystem will offer users a more appealing staking mechanism and higher returns, bringing new advantages and potential to BRC-20 token staking.
Arkstart Roadmap
Q2 2023:
• IDO Launch: Conduct initial IDO to kick-start token distribution and attract early investors.
• Development of Core Features: Focus on developing and launching core features of the Arkstart platform, including Staking and Yield Farming.
• Expansion of Partnership Relations: Establish strategic partnership relations to broaden the ecosystem and attract more projects and users.
• Enhancement of Security: Implement strong security measures to ensure the safety of user assets and data.
Q3 2023:
• Improvement of User Experience: Continually enhance the user interface and experience of the Arkstart platform.
• Launch of Mobile App: Develop and release a mobile application for easy access to the Arkstart platform.
• Community Building: Cultivate a strong and engaged community through regular communication, events, and rewards.
• Exploration of DeFi Integration: Research opportunities for integration with other DeFi protocols to expand functionality and liquidity.
Q4 2023:
• Enhancement of Liquidity Mining: Improve the liquidity mining plan by increasing mining pools and optimizing rewards.
• Implementation of Governance Mechanism: Introduce a governance framework that allows ARKS token holders to participate in the decision-making process.
• Expansion of Market Influence: Amplify marketing efforts to increase awareness and adoption of Arkstart.
• Exploration of Cross-Chain Compatibility: Research and develop interoperability solutions with other blockchain networks.
Q1 2024:
• Advanced Feature Development: Focus on developing advanced features like lending to offer more comprehensive financial services.
• Global Expansion: Explore opportunities for international expansion and partnership relations to expand the user base.
• Regulatory Compliance: Ensure compliance with relevant regulations and legal requirements in target markets.
• Continuous Innovation: Maintain a high focus on innovation and stay at the forefront in the ever-evolving blockchain and DeFi space.
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