A suite of tools that help improve UX in apps and products that foster user adoption in Web3.

Presented by:

• Mayur Relekar | Founder, Arcana | LinkedIn
• Abhishek Chaudhary | CTO, Arcana | LinkedIn
• Saurav Kanchan - Blockchain Lead, Arcana | LinkedIn
• Rahul B.S. - Cryptography Research, Arcana | LinkedIn

<aside> 💡 Draft for open community review and subject to change Please note that it's still early days for Arcana and that this paper is a continuous work in progress. The fundamental philosophy and core concepts behind Arcana will always hold good but actual implementations may differ.

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XAR - Arcana Utility Token

Here we present the economic model behind the Arcana network how it helps us achieve economic sovereignty. In addition, we also present a token inflation design that will help alleviate any teething issues in the early days and help bootstrap the economic model proposed. To develop a self-sustainable, closed-loop economy, all the network fees collected would be re-distributed as incentives for active contributors within the ecosystem.

1. Definitions

• XAR XAR An ERC20 token. The Arcana network itself is simply a blockchain protocol that does not own or run any computing/storage servers, so third-party computing resources are required for processing transactions and running applications on the Arcana network, as well as the validation and verification of additional blocks/information on the blockchain. Providers of these services/resources would require payment for the consumption of these resources (i.e. "mining" on the Arcana network) to secure the network, and XAR will be used as the native network currency to quantify and pay the costs of the consumed computing resources. As an indication of the commitment to the system and service standard assurance, users would be required to stake an amount of XAR as a security deposit before they may participate in mining for the benefit of the network. This stake is used as the deterrent for penalising validators or service providers for various offences (e.g. illegally verifying blocks, rejecting tasks without reason, unacceptable downtime, or other malicious acts). Penalties include deducting the stake put up (or part thereof), reduction deducting incentives, or temporarily or permanently expelling the service provider from the pool. Through ancillary smart contracts, token holders may delegate their tasks to validators and provide them with the necessary XAR so that it is entitled to participate in network consensus – these validators are in turn free to charge competitive commissions to such holders (out of the mining rewards). The network mining rewards will initially come from token inflation and eventually be replaced by network revenue.
• Customers An individual, team or enterprise that signs up with Arcana to explicitly consume services of the network.
• Arcana Treasury Pool This is essentially a set of smart contracts responsible for receiving crypto payments from customers, managing the inflation of the Arcana token, managing staking and also associated rewards.
• Validators Independent entities that work to secure the Arcana blockchain and the network at large. They validate transactions and propose/commit blocks to the Arcana blockchain and also participate in consensus.
• Delegators Arcana token holders who contribute their holdings by locking them up for a certain period of time to bring economic security to the Arcana App Chain in return for a reward.
• Arcana App Chain A delegated Proof of Stake chain run by an independent set of validators.