Research Summary
The report discusses the potential of Archway, a Layer-1 blockchain built on Cosmos SDK, to replicate the success of previous Layer-1 coins. It highlights Archway’s unique features, including its value capture engine, revenue sharing model, and deflationary token system.
Key Takeaways
Archway’s Market Capitalization and Growth
- Low Market Capitalization: Archway’s market capitalization is currently at $50 million, which is significantly lower compared to other Layer-1 coins. This suggests potential for growth.
- Impressive Growth Metrics: Archway has seen a 50% increase in unique addresses in Q4, and its staking ratio has increased to 44%. Over 1 million transactions have been made on Archway in under six months.
Archway’s Unique Features
- Value Capture Engine: Archway’s value capture engine allows dApps to capture ongoing value creation and share in the ecosystem’s growth. This eliminates the need for dApps to resort to unsustainable, inflation-driven economic models.
- Revenue Sharing Model: Archway has a revenue sharing model where developers receive a share of network transaction fees and inflationary block rewards. This incentivizes developers to build and launch dApps.
Archway’s Deflationary Token System
- Gas Rebates: Archway only burns 50% of collected gas fees, with the remainder distributed among dApp developers. This incentivizes developers to build useful products to attract users.
- Inflationary Rewards: Archway has allocated 75% of block rewards for validators and 25% for developers. The Archway community can vote for changes in block rewards anytime via governance.
Archway’s Ecosystem and Infrastructure Projects
- DeFi Ecosystem Projects: Archway supports several DeFi ecosystem projects, including Axvdex, Liquid Finance, Peerswapotc, Eris Protocol, and Sudostake.
- Infrastructure Projects: Archway also supports infrastructure projects such as Archidapp and Nomos Multisig.
Actionable Insights
- Monitor Archway’s Growth: Given Archway’s low market capitalization and impressive growth metrics, it may be worthwhile to monitor its progress and developments.
- Understand Archway’s Unique Features: Archway’s value capture engine and revenue sharing model are unique features that differentiate it from other Layer-1 coins. Understanding these features can provide insights into Archway’s potential for success.
- Consider the Impact of Archway’s Deflationary Token System: Archway’s deflationary token system, which includes gas rebates and inflationary rewards, could have significant implications for its value and attractiveness to developers.
