INVARCH Token Distribution
The InvArch network’s native token is VARCH. The token can be used for a variety of purposes, including:
Fees for transactions
Governance on the blockchain (DAO)
Sets of intellectual property are being minted.
Developing decentralized businesses (DEVs)
And there are plenty more.
At the start, 1 billion VARCH tokens will be issued. The target yearly inflation rate for InvArch is 5%. Because inflation is essential to address security concerns, there is currently no hard cap on the amount of VARCH tokens. This security budget will be used to pay for a parachain slot on an ongoing basis and to encourage collators to provide block production services to the InvArch network.
One percent of the 5% inflation will go to incentivizing collators, and 1.5 percent will go to the parachain bond reserve, which will accumulate on-chain cash to constantly pay for a parachain slot. Users who invest their VARCH tokens will receive the remaining 2.5 percent.
How will the InvArch Network’s transaction fees be used?
To serve as a deflationary measure, 80 percent of transaction fees will be burned, giving VARCH holders more value.
To increase the network’s engagement, 20% of the fees will be allocated to on-chain treasury for on-chain governance to programs and initiatives.
The VARCH tokens will be issued in the following order at first:
10% money as a seed (100,000,000 VARCH)
Funding for strategic initiatives: 5% (50,000,000 VARCH)
Fundraising for Parachain Bonds: 20% (200,000,000 VARCH)
0.5 percent parachain bond reserve (5,000,000 VARCH)
15.5 percent increase in ecosystem and community growth (155,000,000 VARCH)
10 percent (100,000,000 VARCH) protocol development
5.5 percent (55,000,000 VARCH) in the Treasury
Liquidity programs: 5% (50,000,000 VARCH)
Developer incentive: 4.5% (45,000,000 VARCH)
Partners and team: 19% (190,000,000 VARCH)
Team growth: 5% (50,000,000 VARCH).
Seed money is subject to a vesting schedule of 24 months, with a 3-month cliff and equal vesting in months.
Strategic funding: A 12-month vesting plan with a 2-month cliff and equal vesting in months is in place.
Fundraising with a Parachain Bond: Tokens controlled by the network to pay for the Polkadot (DOT) tokens necessary for the InvArch parachain slot in years 1–6. These payments could be in the form of interest payments to the Department of Transportation (DOT) for the mandatory parachain bond, or rewards for crowd loan participants. These monies will be used as a safety net to ensure that the InvArch parachain slot is covered for years 1 through 6. Unused funds, on the other hand, can be used to fund additional InvArch protocol adoption mechanisms.
Liquidity programs: these help to support InvArch’s growth and acceptance. This allocation will aid in the acceleration of activity within the InvArch ecosystem.
Developer incentive: Funds put aside for projects that are early InvArch adopters as a developer incentive.
It is also required to be vested (2-year monthly linear vest). Unused tokens can be used to fund other community projects.
Founders, InvArch team members, and Partners have monies set aside for them. From the start of the network, this is subject to a 4-year vesting schedule, with a 1-year cliff and monthly vesting after that.
Team expansion: Funds set aside for future employees with a four-year vesting period starting with the network’s inception.