Thread by @DougieDeLuca

1 - @archwayHQ is an #IBC CW-enabled incentivized smart contract chain. Aiming to increase equitability in its ecosystem, Archway reshapes how value's created & shared across blockchain ecosystems, opening up a new kind of a developer-centric economy.

My deep dive 🧵 is here 👇

2 - Archway believes that an active & engaged dev community is the most important determinant of long-term success for a smart contract platform. Yet in today's ecosystems, individual contributors & builders rarely capture much of the network-level value they help create

3 - Identifying this key flaw, Archway presents a system where developers who build and launch impactful dApps, earn a proportional share of network fees + rewards. This shared earning model enables dApps to access recurring rewards & participate in the upside of their protocol

4 - Doubling down on prioritizing devs, Archway protocol’s design is also optimized for a seamless dev experience providing a full WebAssembly (Wasm) implementation for cross-language support, a Web3-compatible API, & native bridges for cross-chain communication + asset transfer

5 - Furthermore, with the Archway protocol being built on Cosmos and having a native integration of #IBC, Archway makes it possible to create cross-chain dApps that scale.

For the Archway network, it is being built using the Cosmos SDK, Tendermint, IBC, Starport, and @CosmWasm.

6 - On Archway, dApps are compensated for their contributions to the network through tx fees + inflationary rewards. Similar to how validators are rewarded in a typical PoS chain, dApps, devs and their communities are directly incentivized and gain a true stake in the protocol

7 - dApps & their community configure how rewards are managed + distributed. When a contract’s instantiated, the dApp specifies an “owner” address where fees + rewards are automatically deposited. This can be their own, a multisig, or controlled by a separate custom contract

8 - These fees are collected from various funding sources including: gas rebates, inflationary rewards, & smart contract fees.

^Each are configurable/modifiable by governance meaning the initial parameters set are able to be changed via a governance proposal & vote at any time

9 - Archway doesn't burn gas fees or distribute them entirely to the validators --> 50% are issued to dApps, 50% going to validators.

For inflationary rewards, 25% are issued to dApps with the remaining 75% to validators. Archway's inflation model resembles the Cosmos Hub's

10 - For smart contract fees, dApps can define custom fees for interacting with their smart contracts. Also known as the “take rate,” this fee provides developers an exercisable option to charge different fee levels that are based on their specific use case and operational needs

11 - On the UX side, in order to make the inclusion of these fees as seamless as possible, the smart contract fee is embedded directly in the network fee. End users are simply presented with a single combined fee when signing a transaction. The same process we're all used to

12 - Also, these fees are fully optional. Devs can also earn multiple lines of fees across any user base that interacts with their code. They can even monetize a single contract vs a full dApp. This resembles a built-in licensing model that's fully automated w/ smart contracts

13 - With these funds, dApps can choose to allocate them in a variety of ways including: redistributing rewards to governance members, funding core development efforts, covering users’ gas fees, seeding liquidity pools, contributing to a community DAO, opening bounties, & more

14 - So, what impacts does this have?

Through earning network fees + inflation rewards, devs are incentivized to build on Archway. As each new dApp & library is launched, more users will follow. This will then encourage more devs to build which creates a positive feedback loop

15 - Following the “if you build it, they will come” mentality, Archway leveraging network effects will ultimately drive volume & value to the network. Tho validators share fees & rewards w/dApps, the dev-led adoption Archway’s poised to see will end up benefiting validators too

16 - In this model, there are risks already addressed:

To ensure it wouldn’t be profitable for an attacker to spam txs, gas rebates recoup 50% of fees paid. Furthermore, uploading new contracts requires higher gas fees than normal txs to prevent the deployment of spam contracts

17 - For further protection against Sybil attacks + spamming txs, each dApp has a max inflation rewards cap → a contract deployed to Archway can’t earn rewards > the total gas it generates within an epoch.

*Implementation of a dynamic rewards cap is being actively researched

18 - Some might also question the decision to not burn tokens like $ETH does post EIP-1559. Archway determined that continuously redistributing network fees back into the community is a more sustainable approach as the impact(s) scarcity have on gas $ outweigh its price benefits

19 - From my perspective, the Archway value prop is very important & one that has the potential to bring great success to the network + the broader #IBC eco. One of the main goals of #Web3 is to more effectively distribute value based on contribution and Archway embodies that

20 - Archway solves an important problem: Currently, devs lack access to network-level rewards. On chains like $AVAX & $SOL, devs are only exposed to value at the protocol-level. As seen by $ETH's market cap vs the protocols built on it, most value accrual is at the network level

21 - The thing is, an L1’s value/demand largely comes from users’ interest in the dApps built on top of it. With this being the case, shouldn’t the builders behind said dApps be compensated accordingly? I for one believe so and so does @archwayHQ which is why I believe in this

22 - Having the tooling, predictably the network performance necessary to foster a high growth & diverse ecosystem, as well as the cross-chain capabilities which #IBC unlocks, the incentives which Archway offers will make it highly appealing to devs looking to build in #Web3

23 - Archway is slated to launch in mid-2022. Tho only limited information is available on their token: $ARCH at the moment, Archway intends to launch a token which will be used at the network level as well as in other ways on their chain and throughout the broader #IBC ecosystem

24 - As Archway matures & effectively distributes value back to builders + the community, I'm excited to see the effects it has on the broader space. Esp during this period when asset appreciation will be limited, it’s increasingly important to compensate builders fairly

25 - Stay up to date with @archwayHQ via their Twitter. Also, if this thread inspired you to get involved any way you can via their:

- Discord discord.gg/archwayhq
- Telegram t.me/ArchwayUpdates

If you're a developer, get started here: docs.archway.io/docs/create/ge…

Fin.