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Redefining Incentives for Developers: A Comprehensive Look at Archway’s Reward System

TL;DR

•Archway, a new blockchain in the Cosmos network, has launched on the mainnet

•Archway rewards developers for building on the network with incentives and rewards

•The project raised $31 million through public and private token sales

•Archway utilizes gas rebates, dev inflation tokens, and contract premiums as part of its rewards system

What is Archway?

Archway is Layer 1 blockchain that rewards developers for building on the network with baked-in incentives and rewards. Archway protocol is built on Cosmos and has a native integration of Inter-Blockchain Communication (IBC). IBC allows Archway to connect to other blockchains in the ecosystem to transfer tokens and other data between each other frictionlessly and seamlessly.

Architecture

Archway is built using the Cosmos SDK, Tendermint, and CosmWasm. Starting with the base PoS network template, Archway has modified various modules, including Minting, CosmWasm, Distribution, and Governance, that manage their proprietary inflationary and rewards system. The protocol provides developers with the tools to quickly build and launch scalable cross-chain dApps and receive rewards for the value that the dApps contribute to the network.

The goal of Archway is to foster an array of diverse and sustainable applications by empowering and rewarding developers who build on the network.

Rewards for developers

With Archway, dApps can earn a portion of transaction fees and inflationary rewards in exchange for their contributions to the network. This earning model is similar to how validators are rewarded for operating nodes in a typical Proof-of-Stake chain. The rewards system comprises three types of incentives:

1.Gas Rebates

2.Dev Inflation Tokens

3.Contract Premiums

Gas rebates

Every transaction requires a specific amount of gas for execution, and typically, the account initiating the transaction bears the associated cost. In most Proof of Stake blockchains, the transaction fees associated with purchasing gas are redistributed to network stakers. However, in Archway, 50% of this transaction fee is distributed to the dApp on which the gas was spent, while the other 50% is permanently removed from circulation.

Dev inflation tokens

In the Archway ecosystem, inflation serves as a vital aspect of not only token economics but also network security. This mechanism incentivizes ARCH token holders to stake their tokens, thereby fortifying network security. The newly minted ARCH tokens are dispensed as rewards to validators and delegators for their role in securing the network.

Contract premiums

Archway enables dApp developers to define a custom flat fee for interacting with their smart contracts. These fees grant developers a versatile alternative to monetize their contracts.

Gas Mechanism

Typically, in the Cosmos ecosystem, the gas for transactions is redistributed alongside inflation to network stakers through the Proof-of-Stake validator nodes. Contrarily, Ethereum has a much lower inflation rate, higher usage, and burns gas spent, further limiting the dilution through an increase in supply. Archway will use a modified version of Ethereum’s gas approach, burning a base 50% of the minimum gas spent and distributing the other 50% of gas spent to the contract’s creator.

Funding

Archway was founded by Griffin Anderson and was backed and launched by Tendermint Ventures. It is currently built and maintained by Phi Labs. Information about the team from its official web pages is vague but according to an article by Hashed, the team is made up of experienced contributors from Tendermint Core, AAVE, Polkadot, Maker, and Metamask, among others.

Recently, the Archway core team concluded a $10 million public sale through CoinList. This came a few months after a private token sale, co-led by CoinFund and Hashed, in which the project raised $21 million. This brought its total funds raised to $31 million.Archway will join the expanding Cosmos ecosystem, which comprises 60 different Layer 1 chains, each referred to as a zone. This includes Osmosis, Cosmos Hub, Kava,Injective, and others. According to data from Map of Zones, these Cosmos Layer 1 zones have a cumulative market cap of over $10 billion.

Community Impact

Archway launched Ambassador Program. The program aims to build an engaged community that not only supports the growth of the Archway blockchain but also benefits from the value it creates. Anyone is eligible to join the Architect Ambassador Program by simply completing the quests on the Zealy questboard.

Conclusion

Archway is an exciting addition to the Cosmos ecosystem, offering incentives and rewards to developers and fostering a thriving community. With a robust architecture and integration of Inter-Blockchain Communication (IBC), Archway enables scalable cross-chain dApp development. The experienced team behind Archway brings credibility and expertise to the project. Through its innovative reward system and community-driven approach, Archway has the potential to drive advancements in the decentralized application space and contribute to the overall growth of the Cosmos ecosystem. You can delegate $ARCH to the Stakewolle to provide security for the Archway blockchain.