Token-Economics of ARENA Security Token


Fixed Terms
Valuation Cap
€ 50 000 000 ( 50 M )
Total Supply
1 000 000 000 ( 1 Billion Tokens )
Dilution Protection
Minting Disabled ( no dilution )
Pre ICO Token Min Price
€ 0,05
Max. Circulating Supply
Decentralization Process Length
Launch + 10 Years ( max )
BBB Fund Token allocation
25% ( Fixed until end of process )
Rate of Self-Decentralization
Rate of Self-Decentralization (RSD) refers to the velocity with which change in primary distribution allocations happens over time. This is marked "variable" because it depends on the individual decisions of ARENA Security Token Holders to sell their tokens or not at any point in time throughout the duration of the self-decentralization process. The end point is fixed, not the speed.

The Deal

Asset Scope

The over-arching purpose of ARENA Security Tokens is to deliver our mission: Self-Decentralization, in a manner that is actually feasible, convenient and trust-less.
This implies a number of highly specialized challenges across different sectors of operations - namely it's difficult such a mission in pragmatic and technical terms, that is economically sound and attractive, and at the same time fully legally compliant, transparent and trust-less.
ARENA Security Tokens are a critical component of how we address such concerns.
They feature three complementary use cases, working together towards delivering a broader vision:
  1. 1.
    Investment Vehicle,
  2. 2.
    Revenue Distribution "Beacon",
  3. 3.
    Enforcer of the terms & processes guaranteeing our mission and all that this implies.

The Self-Decentralization Process

CryptoArena is established as a hybrid entity, part for-profit & part non-profit.
In fundamental terms, Self-Decentralization is the process by which shares move from the for-profit, to the non-profit. As a consequence of this, the amounts that the platform distributes to Users increase in time.
Check out the dedicated section for more details.

Initial Cap Table

The Self-Decentralization Process will begin concurrently with the official Launch of our main platform.
Left is Non-Profit, Right is For-Profit. Click to enlarge.
Note: left side proportions are exact, right side are approximated for simplification of graph. In actuality, we won't sell all available for sale ("AFS") Security Tokens, included above in the blue, until 1 or 2 years after launch. This is because unsold AFS Tokens contribute to ongoing cash positions, and we purposefully use this mechanism to speed up break even and support the initial growth stage of the network, just after Launch. Find out more here.

Changing Allocations

As we've extensively repeated, the purpose of it all is for the green allocation to take over entirely.
This happens automatically & progressively, whenever some ARENA Security Tokens move from the for-profit side to the non-profit. This happens as a consequence of outstanding Token Holders deciding to trigger the "Exit" mechanism, releasing their share of the BBB.
Changing Allocation Example. Click to enlarge.

Understanding the Numbers

The Valuation Cap

Financial markets, including crypto ones, feature fierce competition based on mostly on liquidity, and CryptoArena is a unique kind of venture that benefits from scale exponentially, as generated revenues and distribution incentives feed each other in a mutually beneficial feedback loop.
Initiating this process however requires a sufficient initial "push" to give it momentum; a large enough price point to be able to develop, compete & grow into the best version of itself that it can be, during its "limited lifespan".

Predetermined Allocations

These are very purposeful, the proportions and the duration take into consideration the company's plans and a multitude of factors and perspectives, including those of all stakeholders.
Above all considerations, the most notable is that by having the non-profit holding half the total supply from the start, directly translates to the fact that nobody can stop the process of self-decentralization.
Even if all ARENA Security Token Holders in existence, agreed to collude to stop the full delivery of the self-decentralization process and keep profit shares to themselves, it still wouldn't be enough to change the consensus of the system - in very practical terms.

Why 1 Billion Token Supply?

It's functional to the unique terms, properties and purposes of our Security Tokens.
  • the size for full platform development, and to raise competitive market making capital after audit
  • to give away lots of tokens to lots of people for the purpose of promotion and brand building while keeping the relative value per token small initially,
  • because the relative value of this token will stay small, it gives us time to grow our audience, develop and launch the revenue generating services that will feed asset price growth
  • total supply is relatively large, but minting of new tokens is permanently disabled, and the system features escalating scarcity due to the BBB
Escalating scarcity is provided by Token Holders triggering the BBB's release mechanism, effectively removing parts of the total supply from circulation.
This is similar to how a proof of burn mechanism would work (e.g. sending tokens to an inaccessible wallet address), except that ARENA Security Tokens are not actually burnt. Instead, they are moved into the revenue distributions wallet, where they remain permanently, and keep acting as beacons to the distribution blockchain, allowing our automated systems to safely handle the changing of distribution allocation over time. The more Tokens accrue in this wallet, the more will be distributed to the public.

What revenue streams contribute to the value of the Tokens?

Anything and everything that contributes to the platform's cash flow, including all services, all fees, all stakes in complementary organizations (e.g. the CATs DAO).