Archway: First Look

Saad Asif
January 12, 2022
minute read

Archway is an incentivized smart contract chain built on Cosmos. Archway fuses developer incentives into the protocol by sharing a portion of inflationary rewards and transaction fees generated on the network. According to Archway, this creates a flywheel effect. Incentivization leads to dApp creation → more users → network effect → more dApps created.

Through the rewards earned, dApp developers have new ways to incentivize the usage of their dApps without relying on a token treasury with a limited supply. This will allow for the dApp community to grow organically. Developers can use the revenue to incentivize governance participation, reduce fees for users, incentivize liquidity pairs, reduce fees for users and/or fund core development of the dApp.

Importance of Archway

Archway reshapes how value is created and shared across blockchain ecosystems, opening up a completely new kind of developer-centric economy. Archway doesn't only reward network operators and early contributors, but also developers that build on top of the protocol. Typically, new tokens are minted along with transaction fees to pay validators or miners for securely running the network. However, what makes Archway important is the way funds are distributed back to the developers and creators who build on the Archway network. For example, developers can encourage dApp usage by subsidizing gas fees. Built on Cosmos and with native integration of the Inter-Blockchain Communication protocol (IBC), Archway makes it possible to create cross-chain dApps that scale. Developers can launch their contracts straight to an established Proof-of-Stake (PoS) network and instantly connect to users, assets, and communities from across the Cosmos ecosystem.

Use Cases

  • Subsidize Gas Fees - Archway supports gasless transactions. This means that developers can subsidize gas fees by drawing from a pool account (accumulated by either fee rebates or pre-funding through grants etc.). In return, this can massively reduce gas costs to end users.
  • Support for Development Team - developers can bootstrap new projects without dedicating excessive time and resources to fundraising. They can choose from available grants and focus on shipping the best possible product, growing their user base, and supporting the community.
  • Governance Rewards - dApp developers can redistribute their share of network rewards directly to their governance token holders. Archway's model turns standard governance tokens into productive, yield generating assets. They can opt in to automatically redirect the funds earned by their dApp, including gas rebates, inflation rewards and even smart contract fees, straight to governance token holders.
  • Fund a DAO - rewards generated by a dApp can be contributed to a community-owned DAO. This DAO could vote to fund core development teams, sponsor events and hackathons, launch education programs, subsidize third-party integrations–anything and everything that could benefit and impact the ecosystem.

The Token: 

In addition to fees and staking, Archway’s native token $ARCH is used for governance. This helps in maintaining and supporting Archway’s decentralized community, while ensuring fair and transparent participation. $ARCH holders can propose changes to the Archway protocol and vote on active proposals. Consensus reaching proposals are adopted whether they propose to change a specific feature or the governance structure itself. 

The team

Archway was founded in 2021 by Griffin Anderson (Tendermint Inc). The project is backed by and launched by Tendermint Ventures. Tendermint also hosts other projects such as Terra, Binance DEX, Regen, Oasis etc.

Archway’s Roadmap: 

Q3 2021 - Brand identity, lightpaper, website, blog, community channels, etc.

Q4 2021 - Marketing announcement, 2 testnets launched, CLI for WASM contracts, network docs, gas tracking, rewards calculation + distribution, HackAtom

Q1 2022 - Incentivized testnet, open sourcing, developer academy, IBC transfers, builders program

Next Steps: Archway 

Archway seems like a breath of fresh air in the Web 3 world. Incentivizing developers is one of the first steps towards inspiring Web 2 developers to take a plunge into Web 3.  

Archway is fully set to launch an incentivized Mainnet in Q1 of 2022. We can also expect to see a stake drop around that time as well! Stay tuned for our staking guide on how to start staking the native token. 

Important Links: Archway

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