# Tokenomics

## 1. Token Distribution Plan

The Arcane DEX project is anchored on its native token, $ARC, which plays a pivotal role in the ecosystem. The tokenomics of ARC are designed to ensure sustainability, fair distribution, and incentivization of participants.

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**Total Supply and Initial Exchange Offering (IEO)**

* **Total Supply**: The $ARC token, belonging to the Arcane Dex project, has a capped supply of 100 million units (100,000,000). This finite availability is designed to promote value retention. Of this total supply, 100,000 tokens are allocated for the Coinstore Launchpad.
* **Initial Exchange Offering (IEO)**: The project aims to raise $100,000 through the IEO. For this purpose, 100,000 $ARC tokens are set to be offered at an initial price of $1 per $ARC. The fundraising target for the IEO phase is set at 100,000 USDT, with a hard cap of 3,000 USDT per user. The vesting period includes 3 days of linear vesting with 25% available at Token Generation Event (TGE).
* **Initial DEX Offering (IDO):** Targeting a raise of $300,000, an additional 300,000 $ARC tokens will be available, with the offering price determined by market dynamics.
* **Vesting schedule**: Initially, 25% of the total allocation, which amounts to 25,000 tokens, will be released at the Token Generation Event (TGE). Subsequently, an additional 25% (25,000 tokens) will be released each day over the next three days, completing the distribution in a linear unlock over this period.

**Initial Circulating Supply and Market Cap**

* **Initial Circulating Supply**: At launch, the circulating supply of $ARC tokens will be 10 million.
* **Initial Market Cap**: The initial market cap is projected to be $20 million.&#x20;

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## 2. Allocation Plan

The allocation of $ARC tokens is strategically segmented to bolster various aspects of the Arcane DEX ecosystem:

* **Fair Launch (2.5% - 2,500,000 $ARC):** This allocation is for the initial public offering, ensuring a fair and equitable distribution of tokens.
* **Yield Farming (5% - 5,000,000 $ARC):** Reserved to incentivize liquidity providers and users in yield farming activities, crucial for a healthy liquidity pool.
* **Airdrop (8% - 8,000,000 $ARC):** Allocated for promotional activities, including airdrops to boost adoption and reward early adopters.
* **Partnerships (8% - 8,000,000 $ARC):** Dedicated to establishing strategic partnerships and collaborations for growth and outreach.
* **Treasury (5.5% - 5,500,000 $ARC):** A reserve for operational expenses, emergency funds, and future initiatives.
* **Private round A (Seed) (6% - 6,000,000 $ARC):** Cliff of 6 months, releasing over 18 months with 2% TGE unlock.
* **Private round B (Strategic) (6% - 6,000,000 $ARC):** Cliff of 5 months, releasing over 16 months with 2% TGE unlock.
* **Community round (4% - 4,000,000 $ARC):** Cliff of 3 months, releasing over 8 months with 10% TGE unlock.
* **Public round (2.5% - 2,500,000 $ARC):** No cliff, releasing over 6 months with 20% TGE unlock.
* **KOLs Round (2% - 2,000,000 $ARC):** Cliff of 2 months, releasing over 6 months with 10% TGE unlock.
* **Liquidity Provision (5% - 5,000,000 $ARC):** No cliff, releasing over 3 months with 4% TGE unlock.
* **Foundation (26% - 26,000,000 $ARC):** No cliff, releasing over 48 months.
* **Creators (5.5% - 5,500,000 $ARC):** Cliff of 3 months, releasing over 24 months.
* **Marketing (8% - 8,000,000 $ARC):** Cliff of 3 months, releasing over 27 months.
* **Development (8% - 8,000,000 $ARC):** Cliff of 3 months, releasing over 27 months.
* **Team (14% - 14,000,000 $ARC):** Cliff of 18 months, releasing over 24 months.
* **Advisors (7% - 7,000,000 $ARC):** Cliff of 16 months, releasing over 24 months.
* **Growth fund (6% - 6,000,000 $ARC):** Cliff of 8 months, releasing over 24 months.

## 3. Mechanisms for Burning, Deflation, and Additional Issuance

Arcane DEX incorporates several mechanisms to manage the token supply and reinforce the token's value.

**Burning Mechanism**

* A portion of the transaction fees within the $ARC ecosystem is proposed to be burned. This reduces the total supply over time, potentially enhancing the token's scarcity and value.

**Deflationary Features**

* The burning mechanism contributes to $ARC's deflationary aspect. Complementing this, the project can limit the number of tokens available for rewards and staking, gradually decreasing the circulating supply.

**Staking Rewards**

* To promote token retention and active participation in the ecosystem, $ARC holders may be rewarded through a staking program. This program is designed to offer returns based on the quantity and duration of tokens staked, thus fostering a committed and engaged community.
