Network Detail
Brief Introduction
Archway is a Cosmos-based incentivized smart contract platform that rewards developers : The protocol gives developers the tools to quickly build and launch scalable cross-chain dApps and get rewarded for the value the dApps contribute to the network.
Archway ensures that dApp developers receive their fair share of rewards and incentives by building network-level rewards directly into the protocol itself. DApps receive a portion of transaction fees and inflationary rewards in exchange for their contribution to the network, similar to how validators are rewarded on a typical PoS chain. This collaborative earning model allows dApps to earn recurring rewards, earn a real stake in the underlying protocol, and participate in increasing community success.
Mission
The overarching goal of Archway is to foster an array of diverse and sustainable applications by empowering and rewarding developers that build on the network with baked in incentives and rewards.
The internet helped democratize access to information, but it hasn’t fully democratized access to capital and value. Entrepreneurs and developers worldwide lack access to the same opportunities as their counterparts in more developed nations.
Archway aims to level the playing field. Built into the protocol itself, Archway rewards developers based on the value and impact of their dApp, rather than their close association or connections to capital.
Unlike existing Web 2.0 platforms or early versions of Web 3 Layer-1s, where tokens are mostly concentrated in the hands of the first few early participants, Archway is designed to be shared across all contributors and stakeholders. The entrepreneurs and developers who are building on Archway get a true stake in the growth and governance of the protocol itself.
Archway Community
Website丨Twitter丨Medium丨Discord丨Newsletter丨Github
Services and Features
Archway may use the information they collect to provide, personalize, maintain. And improve our products and Services. This includes using information to:
- Operate, maintain, customize, measure, and improve our Services, and manage our business;
- Create and update user accounts;
- Process transactions;
- Send information, including confirmations, notices, updates, security alerts, and support and administrative messages;
- andTo create de-identified or aggregated data.
Funding
Phi Labs, a contributor to Archway, said it raised $21 million in a seed funding round that was co-led by crypto investment firms CoinFund and Hashed.
Phi Labs was spun out of Ignite, formerly known as Tendermint, which launched the Cosmos blockchain-interoperability protocol. Cosmos has grown to have 38 different blockchains, more than 250 projects built on the ecosystem and over $100 billion in digital assets riding atop the network.
Anderson said Phi Labs will use the new capital to build software development tools to make it easier for third-party developers to build on the protocol. Phi Labs will also continue to contribute to Archway.
Other participants in the funding round included Blockchain Capital, Wintermute, Figment, Chorus One, stake.fish, Lemniscap, Hypersphere Ventures and Cosmostation.
Technolgy
Core-Github Homepage
Tech Knoledge
Archway Network starts with a vanilla Proof-of-Stake (PoS) network, with modified Minting, CosmWasm, Distribution, Staking, Group, and Governance Cosmos modules that manage the Archway inflation and rewards system.
Furthermore, Archway creates a Cosmos SDK-based chain with support for WASM smart contract execution that rewards developers for using the deployed smart contracts. In summary, it uses CosmWasm, WebAssembly (Wasm), and Rust. Over 40 high-level programming languages support Wasm, including C and C++, Python, Go, Rust, Java, and PHP.
Cosmos SDK
The Cosmos SDK is a generalized framework that simplifies the process of building secure blockchain applications on top of Tendermint BFT.
Application Blockchain Interface (ABCI)
ABCI is an interface that defines the boundary between the replication engine (the blockchain), and the state machine (the application). Using a socket protocol, a consensus engine running in one process can manage an application state running in another. It’s the interface between Archway and your application, and it consists of a set of methods, each with a corresponding Request and Response message type.
CosmWasm
A framework that allows developers to write multi-chain smart contracts using any programming language, including Rust, which compiles to Wasm.
Gravity Bridge
Gravity Bridge is a bidirectional bridge to Ethereum and eventually other Ethereum Virtual Machine (EVM)-based chains. Archway will provide a native Gravity Bridge integration so developers can pull Ethereum assets such as ERC-20s and ERC-721s into their dApps and bring their own assets to Ethereum.
Inter-Blockchain Communication protocol (IBC)
The next layer is the interconnectivity layer that enables communication between all the individual chains. This creates a series of interconnected zones and hubs that act independently, yet share a common system architecture. This is the key layer for token, data, and digital asset exchanges across chains.
Tendermint Core
Tendermint is the open-source base layer that acts as a blockchain development platform. Anyone with an application can use this blockchain-in-a-box implementation to integrate their own decentralized/distributed network, along with their own BFT-compatible consensus model.
WebAssembly (WASM)
An open standard which defines a portable binary-code format for web-ready executable programs, a corresponding textual assembly language, and interfaces for facilitating interactions between programs and their host environment. WASM lets you code software using any one of a number of programming languages all of which compile and output a streamlined file format with the .wasm extension.
Gas Tracking
To achieve the Archway architecture desired properties, the gas tracking module follows this design:
- Wrap the CosmWasm VM with an Archway GasMeter to allow interception and tracking of information passed by the VM.
- During BeginBlock, the recorded information is brought to memory and processed to determine rewards for each of the contracts executed in the last block.
- Developers can choose to take the rewards or give the gas rebate to end users to subsidize transaction costs. To enable that choice, use a proxy wrapper. The wrapper expects the developer to specify configuration parameters during the instantiate call. The parameters are related to the gas reward and the instantiation request body. This body is consumed by the wrapper and the contract is sent only instantiation requests which means the contract interface does not need to be changed.
- Developer reward payout can happen on demand or automatically at BeginBlock: The disadvantage of on-demand reward is an inferior user experience and results in more transactions just to transfer the rewards; The advantage of on-demand reward is that the reward is automatically transferred to the designated reward address when it crosses a certain threshold.
Difference Between Smart Contracts and Cosmos Chains
Economic
Overview
With Archway, dApps can earn a portion of transaction fees and inflationary rewards in exchange for their contributions to the network. This earning model is similar to how validators are rewarded for operating nodes in a typical Proof-of-Stake (PoS) chain.
Archway seeks to provide three potential funding sources for dApps:
Gas fee rebates
Share of inflationary rewards
Smart contract fees
Archway allows each dApp developer and their community to configure how the rewards are managed and distributed. When a contract is instantiated, the dApp creator specifies an owner address where all fees and rewards are automatically deposited. This target address can be the creator’s address, a multisig, or an address that is controlled by a separate custom contract. Ownership can then be transferred to a new address as needed. Ownership transfer requires only the signature of the previous owner.
$ARCH-Rewards Functions
Governance Rewards
In the Archway model, dApp developers can redistribute their share of network rewards directly to their governance token holders, subject to local securities laws. The Archway model turns standard governance tokens into productive, yield-generating assets.
Support the Core Development Team
The model introduced by Archway can counter some of early financial pressures by allocating dApp rewards directly to core development teams. This funding source could serve as a supplement to help sustain projects and allow the team to focus on what really matters — shipping the best possible product, growing their user base, and supporting the community.
Subsidize Gas Payments
To fund the pool account balance, a developer can use the fees and rewards generated by the dApp itself. In effect, the dApp gets a 50% discount on each transaction from gas rebates along with inflation rewards and contract fees that are potentially available as a bonus.
Fund a Decentralized Autonomous Organization (DAO)
Rewards generated by a dApp can be contributed to a community-owned DAO that is focused on coordinating and funding critical work for its ecosystem. These rewards can be continuously deposited to the DAO treasury that allows members to collectively manage and deploy the assets based on specific needs of the project.
This DAO could then vote to fund core development teams, sponsor events and hackathons, commission code audits, open bug bounties, launch education programs, subsidize third-party integrations, and so on. DAO funding could be available to anything and everything that could potentially benefit and impact the ecosystem.
Boost Liquidity Mining Programs
DeFi projects could use the funds earned from Archway to boost liquidity mining rewards, fulfilling a vital strategy for attracting new users and encouraging active participation.
Reduce DEX Fees
On networks such as Ethereum, DEX users incur two sets of fees: a network fee and a swap fee. The network fee incentivizes miners to operate nodes and the swap fee incentivizes liquidity providers (LPs) to provide liquidity to the DEX.
By deploying to Archway, DEXs could be constructed to effectively eliminate one of the network or swap fees. Instead, the DEX protocol could redistribute the earned gas rebates back to the LPs for providing liquidity to dramatically lower total transaction costs on automatic swaps and improve the user experience.
Gas Rebates
Unlike existing smart contract platforms, Archway does not burn gas fees or distribute them entirely to the validators or miners. Instead, the collected gas fees are split between dApp developers and validators. At network launch, gas fees are divided evenly with 50% going to dApp developers and 50% to validators. The network provides configurable parameters that can be adjusted over time to determine the optimal gas rebate distribution between validators and dApps.
From the dApp developer perspective, a contract receives a 50% rebate on all gas paid. From the validator perspective, deferring a portion of rewards in the near term effectively drives transaction volumes, fees, and increases the value of the underlying network in the future.
It would not be profitable for an attacker to spam transactions on the network as gas rebates recoup only part of the fees paid (50%). As an additional safeguard against potential abuse and to prevent the deployment of spam contracts, gas fees are higher for uploading new contracts than for routine transactions. Gas fees are still sufficiently low to allow smaller projects to upload contracts. Gas fee rebates are automatically paid out by the network on a per-block basis.
Inflation
The overall inflation rate on the Archway network follows the model of the mint module in the Cosmos Hub, with total token supply increasing between 7% and 20% annually, depending on the ratio of tokens that are actively staked on the network.
The Archway protocol then shares a portion of these total inflation rewards directly with dApps. At genesis, 25% of inflation rewards go to dApp developers and 75% go to validators. For example, if the network sees total annual inflation of 8%, then 2% goes to dApps and 6% goes to validators. These distribution values are configurable parameters that can be adjusted by the Archway community through network governance.
The dApp rewards pool (2% in the previous example) is then proportionally distributed based on the relative amount of gas fees that each dApp generates within a given epoch. For example, a dApp that is responsible for 10% of gas consumption is awarded 10% of the available pool.
To mitigate potential Sybil attacks and ensure spamming transactions is not profitable, each dApp has a max inflation rewards cap. At network launch, there is a hard cap based on the total gas fees paid per dApp. A contract deployed to Archway cannot earn rewards greater than the total gas it generates within an epoch. Implementation of a dynamic rewards cap is being actively researched and can be updated through future governance. Transitioning to a floating cap provides more flexible distribution and further incentivizes developers to continuously improve their dApps.
Any surplus in rewards is contributed to the Archway community pool where the funds are managed through governance.Inflationary rewards are paid out by the network on a per-block basis.
Ecosystem-Governance
Governance is the process by which Archway network participants and token holders can influence the future direction of the protocol through proposals and on-chain voting.
In addition to fees and staking, Archway’s native token is used for governance. This governance model helps maintain and support Archway’s decentralized community while ensuring fair and transparent participation. All holders of the native token can propose changes to the Archway protocol and vote on active proposals. Proposals that reach a consensus threshold are adopted, whether a specific feature or even changing the governance system itself.
Archway’s Incentivized Testnet — Torii
Torii testnet will run across multiple phases, each of which is designed to test various dimensions of the network and grow the overall ecosystem.
Validators, developers, and community members will participate in a series of competitive tasks and guided challenges. With each challenge, participants will have the opportunity to earn tokens.
In total, ~0.5% of the token supply will be distributed to winners.
To ensure we assemble a diverse and representative set of participants, the program is focused across several distinct themes:
- Node Operations — performing technical tasks related to operating a validator and testing core protocol features (running a node, performance stress testing, etc.)
- Feature Testing — targeted testing of Archway’s unique new features. Let’s see if we can break the economic model (economic exploits, maxing out network rewards, sybil attacks, etc.)
- dApps + Tooling — building core applications (DEXs, NFT marketplaces, etc) and tooling that simplifies development workflows and developer onboarding (run CLI in local env, contract templates, etc)
- Contributor Content — publishing creative content that raises awareness and educates the broader community on the value and benefits to Archway, why it’s important, and what that means for developers.
If you want to join the Testnet, please Submit this form to register your interest in participating and you’ll be notified shortly about specific next steps.
Validator
Introduction
Archway is based on the Tendermint consensus engine that relies on a set of validators that are responsible for committing new blocks in the blockchain.
These validators participate in the consensus protocol by broadcasting votes which contain cryptographic signatures signed by each validator’s private key. Validator candidates can bond their own ARCH or have ARCH delegated or staked to them by token holders. See Participate in Staking (Delegation). The validators are determined by the highest number that stake or delegate to them.
Validators and their delegators ARCH as block provisions and tokens as transaction fees through execution of the Tendermint consensus protocol. Note that validators can set commission on the fees their delegators receive as additional incentive.
If validators double sign, are frequently offline, or do not participate in governance, their staked ARCH(including ARCH of users that delegated to them) can be slashed. The penalty depends on the severity of the violation.
Hardware
Validators can set up a physical operation secured with restricted access. A good starting place, for example, would be co-locating in secure data centers.
Validators are expected to equip their datacenter location with redundant power, connectivity, and storage backups. Plan to have several redundant networking boxes for fiber, firewall, and switching and also small servers with redundant hard drive and failover. To start out, hardware can be on the low end of datacenter gear.
Archway network requirements are expected to be low initially. The current testnet requires minimal resources. Bandwidth, CPU, and memory requirements rise as the network grows. Large hard drives are recommended for storing years of blockchain history.
Requirements
Hardware
Validators should expect to provision one or more data center locations with redundant power, networking, firewalls, HSMs and servers.
Linux distribution
x86_64 processor
16 GB RAM
500 GB to 2 TB storage
Software
Validators must develop monitoring, alerting and management solutions.
Bandwidth
The Cosmos network has the capacity for very high throughput relative to chains like Ethereum or Bitcoin. Archway recommends that the data center nodes connect only to trusted full-nodes in the cloud or other validators that know each other socially. This relieves the data center node from the burden of mitigating denial-of-service attacks. Ultimately, as the network becomes more heavily used, multi gigabyte per day bandwidth is very realistic.
Set-up Docs
Troubleshooting Common Issues With Validator Nodes
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About BlockPower
Our Services
Why do people trust us?
- We have started 7/24 staking services since 2018, and have managed over $100 million assets.
- We run highly available and redundant nodes in different data centers to achieve continuous operations.
- We are actively participating in community and governance, disclosing information frequently.