Token Allocation
Updated June 2023

This is an updated version of the lockup schedules from the previous one.

OVERVIEW

The Archway protocol aims to distinguish itself from competitors by focusing on creating an
economically sustainable token design for ARCH, the native governance token of the Archway protocol.  
The specifics of the token design, which are key to understanding the unique benefits of the Archway
protocol, can be found in the Archway Economics paper. 

This paper provides the Archway community an itemized breakdown of the ARCH distributions that willtake place at the Protocol’s launch. Championing transparency, this document will list and expand upon
the initial token allocations.

Token Distribution

2% of Supply# of ARCH

Ecosystem Grants

27.00

270,000,000

Private Sale 01

12.00

120,000,000

Private Sale 02

2.50

25,000,000

Archway Foundation

17.50

174,946,634

Phi Labs

10.00

100,000,000

Community Pool

10.00

100,000,000

Core Contributors

10.00

100,000,000

Airdrops

5.00

50,000,000

Community Sale

2.50

25,053,366

Early Backers

3.00

30,000,000

Testnets and Hackathons

0.50

5,000,000
Some numbers have been rounded.

Token Distribution

3genesis distribution
Community SaleAllocation: ~2.5%
After confirming purchases, approximately 2.5% of the token’s initial supply, or 25M ARCH tokens,were sold on the Community Sale that took place in June of 2023. This allocation aimed to further
decentralize the genesis token supply and provide initial access to interested parties across the globe,
while equipping the Archway Foundation with resources to support the development and adoption ofthe Archway protocol. All tokens purchased through the community sale will be subject to a 40-day
lockup, and will unlock on an 8-month linear schedule. 

* Residents of the United States and other prohibited jurisdictions were not eligible to participate in theCommunity Sale.

Core Contributors
Allocation: 10%
The Core Contributors allocation consists of 10% of the initial token supply, or 100M ARCH tokens. A
portion of these tokens will be distributed to over 50 individuals who helped bring the Archway
protocol’s innovative design to life. These individuals contributed to the development, design, growth,and implementation of the protocol. The launch of this protocol has been years in the making, and it has
taken many experts countless hours to give breath to this vision. It is important to note that thisallocation has not been distributed to its entirety, in order to benefit future core contributors and further
decentralize the network.  
Each Core Contributor’s token allocation will be subject to a 3-year unlocking schedule starting at thetoken generation event, with an initial 1-year lockup, and will be followed by a per block linear unlocking
period over the following 2 years. All tokens allocated are eligible to be staked, but staking rewards willremain locked until the core contributor reaches the 1-year unlock period.

4Phi Labs
Allocation: 10%
Phi Labs, a core contributor to the Archway protocol, will receive an allocation of 10%, or 100M ARCH
tokens, of the genesis supply. Phi Labs contributes to the creation of community tools, helps maintainand develop the core network, and provides general support to teams building on the Archway
protocol. Phi Labs’s token allocation will be subject to a 3-year unlocking schedule starting at thetoken generation event, with an initial 1-year lockup, and will be followed by a per block linear
unlocking period over the following 2 years. All tokens allocated are eligible to be staked, but staking
rewards will remain locked until the core contributor reaches the 1-year unlock period.

Archway Foundation
Allocation: ~17.5%
The Archway Foundation will receive an allocation of approximately 17.5%, or 175M ARCH tokens, of theGenesis supply. The Archway Foundation is dedicated to the advancement and adoption of theArchway protocol, and aims to foster security, decentralization, and growth for the Archway ecosystem.
This allocation is also intended for foundation employees, supporting early liquidity, and community
incentives.

Community Pool
Allocation: 10%
The Community Pool will receive an allocation of 10%, or 100M ARCH tokens, of the genesis supply.
The Community Pool will be distributed through ARCH governance at the discretion of the Archwaycommunity. This supply may be used for activities including, but not limited to, funding dapps,deploying liquidity, and sponsoring community organized initiatives. Any ARCH holder can submit aspend proposal to on-chain governance, provided they reach the minimum deposit requirement. If theproposal is approved by the Archway community, the tokens will be distributed from this pool to be
used as intended by the proposal. The expectation is that the Community Pool will be perpetually andprogrammatically replenished in accordance with the rules of the protocol.  

There is a strong expectation that detailed discussions and feedback regarding spending proposals
will take place on the Archway forum. The community is urged to be both reasonable and diligent whenevaluating such proposals.

Token Distribution

5Ecosystem Grants
Allocation: 27%
An allocation of 27% of the genesis supply, or 270M ARCH tokens, will go to funding Ecosystem Grants.
The Ecosystem Grants program is designed to foster and support the development of the Archway
ecosystem. This allocation will be overseen by a Grants Committee consisting of key contributors fromacross the ecosystem.

The goal of the Ecosystem Grants program is to empower those who are aligned with Archway’s coreethos and are looking to enable the Protocol by providing the most benefit to the users, contributors
and the Protocol itself. The program is focused on supporting committed builders and contributors thatare advancing the ecosystem through creating key tooling, community resources, applications,research, and educational materials, among other things. A breakdown of the Grants Program can befound here.

Early Backers
Allocation: 3%
Right from the Archway Protocol’s inception, early backers catalyzed the growth and advancement ofcontributing teams. Tendermint and its employees contributed capital, marketing, design, andinfrastructure, as well as a network of core Cosmos contributors and partners, services, and more. This
multifaceted assistance helped position Archway not just as champions for the development
community, but also as thought leaders in economic viability and sustainability. These backers arereceiving an allocation of 3.0% of the genesis supply, or 30M ARCH tokens. Early Backers’ token
allocation will be subject to a 3-year unlocking schedule starting at the token generation event, with an
initial 1-year lockup, and will be followed by a per block linear unlocking period over the following 2years. All tokens allocated are eligible to be staked, but staking rewards will remain locked until the core
contributor reaches the 1-year unlock period.

Token Distribution

6

Private Purchasers
Allocation: 14.5%

Figure 1

Private Purchasers have the right to acquire an allocation from a pool of 14.5%, or 145M ARCH tokens.
Unsold amounts will be used to fund future private purchasing rounds in order to continue supportingthe core development of the Archway Protocol. Private Purchasers’ token allocation will be subject to a
3-year unlocking schedule starting at the token generation event, with an initial 1-year lockup, and will
be followed by a per block linear unlocking period over the following 2 years. All tokens allocated areeligible to be staked, but staking rewards will remain locked until the core contributor reaches the 1year unlock period.

Airdrops
Allocation: 5%

The Archway protocol will allocate 5% of the genesis supply, or 50M ARCH tokens, to current andfuture members of the Archway community in multiple waves. Airdrop mechanisms are expected to be
designed to encourage engagement and interaction with the Archway protocol. The Genesis airdrop
will distribute a portion of this allocation, leaving the remaining allocation, as well as unclaimed tokens,for distribution in future airdrops.

Token Distribution

7

Testnets and Hackathons
Allocation: 0.5%
Archway has a nucleus of community contributors who have actively contributed to the Titus,
Constantine, and Torii testnets through various channels. While some participated in Archway’s
incentivized Torii testnet, others built on Cosntantine through the various hackathons. 

This 0.5%, or 5M ARCH tokens, is allocated to reward testnet and hackathon contributions, pre andpost mainnet launch. A portion of these tokens will be distributed to premainnet testnet participants
and hackathon winners, and the remaining allocation will be used for future testnet and hackathon
incentivization. All of these tokens, regardless of the point of distribution, will be subject to a 1-year cliff
with no further lockup.

Token Distribution8

Inflation  ScheduleArchway’s emission mechanics will differ from the generic x/mint module in the Cosmos-SDK.
Currently, ATOM emissions are set based upon parameters such as InflationRateChange, InflationMin,InflationMax, GoalBonded, and BlocksPerYear. Even without an inflation change based on an arbitrary
GoalBonded ratio, staking rewards still decrease as the bonded rate increases. Archway will have a set
inflation rate independent of the bonded percentage, and will be properly executed in real time.
Furthermore, a fixed percentage of inflation will be split amongst stakers and developers based on the
Dev Inflation Tokens parameter.  
For comparison:Parameter

ATOMParameter

ARCH

MintDenomuatom (micro)

MintDenom

aarch (atto)

InflationRateChange

13%

Inflation

10%

InflationMax

20%

Dev Inflation Tokens

25%

InflationMin

7%

GoalBonded

67%

BlocksPerYear

4,360,000

Figure 2

Figure 3

BlocksPerYear as a guesstimate is inefficient and leads to a difficult user experience for builders  and users.

Token Distribution

9This won’t be necessary, as Archway will have time (to the millisecond) factored into each block, which
will be used to mint the proper amount of ARCH based on blocktime using the formula:t n x Supply(n-1) x Inflation
MintB n = ———————————————————————————————
31557600

For example, for blockn, assume
Blocktime: 5.004 second
Current Supply: 1,000,544,650 ARCH

5.004 x 1000544650 x 0.10
MintBn = ————————————————————— = 15.9 ARCH
31557600

Of this, 75% (11.9 ARCH) would go to validators and stakers, and 25% (4.0 ARCH) would remunerate
developers based on gas spent on their contracts. This standardized inflation rate leads to an easily
predictable supply chart at the governance-controlled inflation parameter compounded each block.

Supply in Billions

32102
Figure 44681012Year

All of the inflation mechanics and parameters are subject to DAO governance. What is presented here
is an estimation of what is planned to be included in the first major upgrade post-genesis, if decided
upon by Archway Community governance.

Token Distribution

10

DISCLAIMER
The material provided herein is for informational purposes only. It does not constitute an offer to sell, ora solicitation of an offer to buy, any interests in any securities. Certain statements herein may constituteforward-looking statements. When used herein, the words “may,” “will,” “should,” “project,” “anticipate,”“believe,” “estimate,” “intend,” “expect,” “continue,” and similar expressions or the negatives thereof are
generally intended to identify forward-looking statements. Such forward-looking statements, including
the intended actions relating to, and performance objectives of, the Archway project (“Archway”)
involve known and unknown risks, uncertainties, and other important factors that could cause theactual results, performance, or achievements of Archway and the development of the system, network,
its components, and the tokens to differ materially from any future results, performance, orachievements expressed or implied by such forward-looking statements. No representation or warranty
is made as to future performance or such forward-looking statements. All forward-looking statements
herein speak only as of the date hereof. We expressly disclaim any obligation or undertaking todisseminate any updates of revisions to any forward-looking statement contained herein to reflect any

change in its expectation with regard thereto or any change in events, conditions, or circumstances on
which any such statement is based. You are not to construe this paper as investment, legal, tax,regulatory, financial, accounting or other advice, and this paper is not intended to provide the basis forany evaluation of an investment in an interest.  
This document does not constitute and should not be interpreted as either an investment
recommendation or advice, including legal, tax or accounting advice.

Neither ARCH tokens nor rights to purchase ARCH tokens will be offered or sold in the United States orto U.S. persons or to residents of certain other prohibited jurisdictions. In other jurisdictions offers andsales of the ARCH tokens or rights to purchase ARCH tokens, when made, may be subject to significant
restrictions, including, where applicable, requirements that the offeree or purchaser meets certain
qualifications in the jurisdiction in which they are resident and/or that any such offer or sale beaccompanied by a prospectus or other disclosure document. 

 Archway is an open-source protocol that will allow operation of a blockchain network to be known as
the Archway Network. The Archway protocol is under development and subject to change. As such, theprotocol documentation and contents of this document may not reflect the current state of the protocol
at any given time.  
The protocol documentation and document content are not final and are subject to change.

Token Distribution

11

medium.com/archwayhq

discord.com/invite/archwayhq

twitter.com/archwayhq

github.com/archway-network

Token Distribution