Status: Pre-mainnet. ARX does not exist on-chain yet. This document describes the planned token economics for the Arxia protocol. All parameters are subject to change prior to TGE.
- Overview
- Supply
- Allocation
- Vesting Schedule
- Node Operator Rewards
- Fee Mechanism
- Staking
- Slashing
- TGE and IDO
- Governance
ARX is the native utility token of the Arxia protocol. It serves four functions:
- Transaction fees — every transaction pays a fee in ARX, split between the relaying node, validators, and a burn mechanism.
- Node staking — relay node operators stake ARX as collateral. Stake is slashed for poor performance or malicious behavior.
- Governance — ARX holders vote on protocol parameter changes, treasury allocations, and the transition to full DAO governance.
- Node rewards — operators earn ARX proportional to their relay score over monthly emission cycles.
ARX is not a security token. It does not represent equity, profit sharing, or any claim against the Arxia Foundation. Its utility is functional: paying fees, earning rewards, and participating in governance.
| Parameter | Value |
|---|---|
| Total supply | 1,000,000,000 ARX (1 billion) |
| Inflation | Zero — fixed supply at genesis |
| Decimals | 18 |
| Token standard | ERC-20 on Base (pre-mainnet) |
| Native token | ARX on Arxia L1 (post-mainnet) |
The supply is fixed at genesis. No additional ARX can ever be minted. The only supply-side mechanic is the burn component of transaction fees, which is deflationary over time.
Total Supply: 1,000,000,000 ARX
│
├── Node Operators 250,000,000 ARX (25%)
├── Ecosystem Fund 200,000,000 ARX (20%)
├── Team 150,000,000 ARX (15%)
├── Public IDO 150,000,000 ARX (15%)
├── Treasury 130,000,000 ARX (13%)
└── Seed Investors 120,000,000 ARX (12%)
Distributed to relay node operators over 60 months according to a decreasing emission schedule. Rewards are proportional to each node's relay score relative to the total network score.
| Period | Monthly Emission | Total |
|---|---|---|
| M1–M12 | 6,250,000 ARX | 75,000,000 ARX |
| M13–M24 | 4,583,333 ARX | 55,000,000 ARX |
| M25–M60 | 3,333,334 ARX | 120,000,000 ARX |
| Total | 250,000,000 ARX |
Controlled by the Arxia Foundation multi-sig (5/9). Used for:
- Developer grants and hackathons
- ONG deployment subsidies
- Bug bounty program (250,000 USD equivalent ARX at testnet launch)
- Community incentives
Cliff 12 months, linear vesting over 36 months (48 months total). Held in a 3/5 founder multi-sig. Vesting executed via Sablier V2 on Base, publicly visible on-chain in real time.
Distributed via Liquidity Bootstrapping Pool (LBP) on Fjord Foundry (Base). See TGE and IDO.
Vesting over 48 months. Governed by DAO vote (5% quorum of circulating supply). Used for long-term protocol development, audits, and operational continuity post-DAO transition.
Price: 0.02 USDC/ARX. Cliff 6 months, linear vesting over 24 months (30 months total). Structured as SAFT (Simple Agreement for Future Tokens) — no tokens are delivered until TGE. Vesting via Sablier V2 on Base post-TGE.
Cliff Vesting Total Lock
Team 12 mo + 36 mo = 48 months
Seed Investors 6 mo + 24 mo = 30 months
Treasury 0 mo + 48 mo = 48 months
Node Operators 0 mo + 60 mo = 60 months (emission schedule)
Ecosystem Fund 0 mo + governance-controlled
Public IDO 0 mo (delivered at TGE)
All vesting is enforced on-chain via Sablier V2 streaming contracts on Base, publicly auditable in real time. No party can accelerate their vesting.
Node operators earn ARX monthly based on their relay score:
reward = (node_score / total_network_score) × monthly_emission
Where:
node_score = valid_relay_receipts / transactions_in_range (30-day window)
A RelayReceipt is a cryptographic proof (Ed25519 signed) that a node relayed
a specific transaction. Receipts are collected in batches (RelayBatch) separate
from transaction payloads to respect the LoRa 256-byte MTU constraint.
Nodes operating in active conflict zones (ACLED classification) receive a ×2 multiplier on their relay score. This counteracts the centralizing incentive of deploying nodes in well-connected urban areas rather than high-need regions.
The ACLED zone list is distributed weekly via satellite broadcast (<500 KB), signed by the Arxia Foundation Ed25519 key, and verified offline by each node.
A node must stake a minimum of 500 ARX to be eligible for rewards. This threshold is recalibrable by governance if ARX price exceeds ~2 USD (to prevent the stake from becoming prohibitive for operators in low-income regions).
Every transaction pays a fee computed as:
fee = ceil(tx_bytes / 100) × BASE_FEE_ARX
Where BASE_FEE_ARX = 0.001 ARX (fixed at genesis, adjustable by governance
every 6 months via the fee_arx_per_usd_cent parameter).
| Destination | Share |
|---|---|
| LoRa relay node | 60% |
| Burned (deflationary) | 30% |
| Validator (L2) | 10% |
For L0 transactions (BLE only, no LoRa node involved):
| Destination | Share |
|---|---|
| Burned | 100% |
| Parameter | Value |
|---|---|
| Minimum stake | 500 ARX |
| Governance adjustment | If ARX > ~2 USD, threshold recalibrated |
| Lock period | Active while node is registered |
| Reward eligibility | Requires score ≥ 85% over 30-day window |
ARX holders can delegate their stake to a representative for ORV consensus votes. Delegation rules:
- Minimum delegation age: 7 days before taking effect (anti-stake-grinding)
- Stake delegated after a partition begins is ignored for that ORV round
- Delegation is revocable at any time, with a 7-day delay before the new assignment activates
Representative eligibility: minimum 0.1% of total supply delegated.
Node operators are subject to slashing for poor relay performance:
| Condition | Penalty |
|---|---|
| Score < 85% over 30 days | −10% of staked ARX |
| Score < 60% over 7 days | −25% of staked ARX + node exclusion |
| Cooldown after exclusion | 30 days before re-registration |
Slashed ARX is burned, not redistributed. This prevents perverse incentives where validators benefit from slashing competitors.
- Instrument: SAFT
- Price: 0.02 USDC/ARX
- Allocation: 120,000,000 ARX (12% of supply)
- Target raise: 2,400,000 USDC
- Vesting: cliff 6 months + linear 24 months via Sablier V2
- Platform: Fjord Foundry LBP on Base
- Allocation: 150,000,000 ARX (15% of supply)
- Starting price: 0.08 USDC/ARX
- Price floor: 0.03 USDC/ARX
- Duration: 72 hours
- Post-IDO liquidity: Uniswap V3 on Base
| Scenario | IDO Price | Multiple |
|---|---|---|
| Bear | 0.03 USDC | 1.5× |
| Base | 0.10 USDC | 5× |
| Bull | 0.30 USDC | 15× |
| Ultra | 1.00 USDC | 50× |
The 30-month total vesting (cliff 6m + linear 24m) prevents seed investors from dumping at IDO open. Zero seed ARX is liquid at the moment the LBP begins.
- Bridge: Lock-and-Mint, unidirectional (Base → Arxia L1 only)
- Ratio: 1:1 ARX ERC-20 → ARX native
- Migration window: 24 months post-mainnet
- Custody: Arxia Foundation multi-sig (5/9) + 72-hour timelock
- Bridge risk isolation: a bridge compromise does not affect L1 operation
- Model: stake-weighted (1 ARX = 1 vote)
- Cap:
min(balance, 0.10 × total_votes_cast)— no single wallet exceeds 10% of effective quorum - Votes are signed on-chain; duplicates deduplicated by hash at reconciliation
- Offline votes: nonce-signed, deduplicated at network sync; oldest vector clock wins if the same wallet votes in two partitions
| Decision Type | Quorum Required |
|---|---|
| Standard parameter changes | 5% of circulating supply |
| Critical (supply, protocol upgrades) | 15% of circulating supply |
| Absolute floor | 50,000,000 ARX |
| Escalation (>400M ARX in circulation) | 25% of circulating supply |
Critical decisions additionally require Arxia Foundation multi-sig (5/9) approval in parallel. This dual-key mechanism protects against governance attacks during early circulation phases.
The Arxia Foundation transfers governance to a full on-chain DAO when all four conditions are met simultaneously:
- Mainnet live for ≥ 6 months
- Circulating supply ≥ 40% of total
- ≥ 1,000 active relay nodes
- ≥ 3 independent security audits published
Once conditions are met, the Foundation has a 6-month window to execute the transfer. There is no automatic enforcement mechanism — the Foundation's obligation is contractual and reputational.
- All figures are subject to change prior to TGE.
- The ARX token does not exist on-chain at this stage. No purchases, pre-sales, or token transfers of any kind are currently open.
- This document is for informational purposes only and does not constitute a financial offer or investment advice.
- The Arxia Foundation is incorporated in Zug, Switzerland. Token classification is subject to ongoing legal review under Swiss law and the EU MiCA framework.
Last updated: 2026-03-19 — v29