What is the issuance and circulation of ARPA coins?

ARPA coins are the native token of the ARPA network, used for incentivizing participation, securing the network, and facilitating privacy-preserving computations.

Nov 29, 2024 at 11:48 am

What is the Issuance and Circulation of ARPA Coins?

Introduction

ARPA is a blockchain-based privacy-preserving computation network that enables secure multi-party computation (MPC) without revealing sensitive data. The ARPA network utilizes a native token, also known as the ARPA coin, to incentivize participation and secure the network. This article delves into the issuance, circulation, and other key aspects of ARPA coins.

Issuance of ARPA Coins

1. Initial Coin Offering (ICO): The initial ARPA coin offering was conducted in 2018 and raised approximately USD 35 million. A total of 400 million ARPA coins were issued during the ICO, representing 40% of the total supply.
2. Team and Advisor Allocation: A portion of the ARPA coin supply (10%) was allocated to the project team and advisors, ensuring their long-term commitment to the project's success.
3. Foundation Allocation: Another portion (10%) of the ARPA coin supply was designated for the ARPA Foundation, a non-profit organization supporting the research, development, and adoption of the ARPA network.

Circulation of ARPA Coins

1. Public Exchanges: ARPA coins are widely traded on various cryptocurrency exchanges, including Binance, Huobi, and OKEx. These exchanges facilitate the buying, selling, and trading of ARPA coins among the general public.
2. Decentralized Exchanges (DEXs): ARPA coins are also available for trading on decentralized exchanges, such as Uniswap and PancakeSwap. DEXs enable users to trade cryptocurrencies directly with each other, eliminating the need for intermediaries.
3. ARPA Network Participation: ARPA coins are used to incentivize participation in the ARPA network. Network participants, including computing providers and users, earn ARPA coins for providing computational resources, conducting privacy-preserving computations, or staking their coins.

Other Key Aspects

1. Total Supply: The total supply of ARPA coins is capped at 1 billion. This fixed supply ensures that the value of each ARPA coin is not subject to unlimited inflation.
2. Token Burn: To maintain the scarcity of ARPA coins, the ARPA Foundation periodically conducts token burns. The tokens are permanently removed from circulation, thereby reducing the overall supply and potentially increasing the value of remaining coins.
3. Staking: ARPA coin holders can stake their coins on the ARPA network to earn rewards. Staking contributes to securing the network and allows users to generate passive income.
4. Governance: ARPA coins grant holders voting rights within the ARPA network. They can participate in decision-making processes, such as proposing and approving network upgrades or allocating funds.

Conclusion

ARPA coins play a crucial role in the issuance, circulation, and operation of the ARPA network. The issuance process ensures a fair distribution and incentivizes early participation. The wide availability of ARPA coins on both centralized and decentralized exchanges facilitates easy access and liquidity for users. Furthermore, the ongoing development of the ARPA network through token burns, staking, and governance mechanisms contribute to the long-term sustainability and value of ARPA coins.