Introduction

ARCx is just over two years old. What started off as a synthetic asset DeFi protocol has now evolved into something much bigger and more exciting – the first on-chain identity layer.

While the journey hasn’t been a straight line, the progress we’ve made and technology we’ve built underneath the hood is one that we believe will push the industry forward.

The Opportunity Ahead

On August 23, we released our credit scoring-based lending/borrowing markets which utilises this on-chain identity layer in a novel and sophisticated way. In addition to this, over the past few months we’ve been working with other DAOs and projects in the space and believe that the problems that ARCx can solve go far beyond just credit scoring - there’s a much bigger vision that we intend to execute on.

What we have created is an extremely powerful and flexible data infrastructure that can be used to solve many pressing problems for DAOs, companies and projects in the space. We’re starting by helping our customers understand key business metrics including retention, attribution and metrics such as CAC/LTV etc.

We’ve already earned thousands of dollars in revenue from early customers, with a pathway for how we can scale it as well through a new product offering which has received promising early traction.

The team is currently 9 full time employees, with the majority having been around for over a year and highly skilled in the realms of on-chain identity and data.

Going private

We initially launched the ARCx Governance Token in very different circumstances to today, and as a result of market changes it has become effectively illiquid, with a valuation that we believe doesn’t reflect the reality of the fundamentals present. To this effect, we’re announcing today our plan to take ARCx private, so that we can focus on growing a sustainable business.

This is the first time a token has gone from public to private, so we want to ensure that we’re being fair and transparent to all stakeholders as we proceed to this next phase. There will be two pathways for those who hold ARCx:

1. Continue on the journey with us and hold your existing ARCx Governance Tokens. They will become non-transferable until further notice.
2. Redeem your ARCx Governance Tokens for USDC within the next one month (as detailed below)

The total number of ARCx will remain unchanged, and there will be no change in the fundamental ownership structure of ARCx. The token contract will be paused, resulting in the token being unable to be traded or transferred for an indefinite period going forward.

Of course, the intention is to unlock the ARCx Governance Token in the future so that token holders can realise the value of their tokens.

Terms

In order to ensure that we’re being fair to those in our past journey and future, we will be offering the following terms:

• The buy-out contract will be live from the 31st of October and be live till the 30th of November.
• ARCx tokens will be redeemable at a price of $0.071 USDC. This represents a 90 day TWAP with a 20% premium (from July 29, 2022 to October 26, 2022).

• This will cost the ARCx treasury a maximum of $1.77m USD (assuming all ~25m community held tokens are redeemed).
• The buy-out contract will remain live for one month ending on 30th November 2022. After this date, the ARCx token will become non-transferrable.
• Immediately after the buy-out period ends, the ARCx Token will be paused and transfers will be disabled at a contract level, until further notice.
• The ARCx team will not be participating in the buy-out, and will not redeem any of their vested or unvested team allocated tokens.

Moving Forward

Making the token private will allow us to accelerate our development and create greater focus and certainty around the future of ARCx. We’re excited to embark on this next stage and are open to any questions in our Discord.

‍