Sustainability is quite the buzzword in crypto. How many times have we heard this phrase used in conjunction with the most outlandish and face-melting ponzi tokens?
The quest for true sustainability has led many protocols to switch over to various kinds of “real yield” models that rely on protocol fees instead of high emissions to reward users and investors.
This is mostly viable as long as there is enough volume and support for the protocol in question. Without enough volume, any yield generated would be negligible.
On the opposite end of the spectrum, we have printer tokens. These are typically memecoins that don’t even pretend to be sustainable. They typically lack any kind of buy pressure over the long term, so they quickly fade away as volume decreases.
Hundreds of these have come and gone in the last few years, with varying degrees of success.
As long as there is volume, reflections will be produced. If hype can be maintained and volume sustained, the project remains stable. Unfortunately, most aren’t sustainable because volume dries up.
Therein lies the problem: volume.
The vast majority of printer style tokens have failed, not because there was anything particularly wrong with them, just that they were not able to maintain enough hype to generate meaningful volume.
APAY, a new printer token on Arbitrum, may have just solved this problem.
ArbiPay: a Printer and Lottery in One
I’m a big fan of anything innovative in DeFi, which is one of the reasons why I have been more active on Arbitrum lately. Seems like every week there’s something new and interesting being released on Arb, reminds me a lot of how Fantom was before it had its big run up.
Knowing how hot Arbitrum has been, I’ve been keeping an eye out for anything that looks even remotely promising.
Probably one of the more interesting projects that has launched in recent memory is LOTTO. Fans of Arbitrum are probably well acquainted with this token already. A portion of every buy and sell goes to a lottery pool, and anyone who drops $100 or more on the token has a shot at winning the pool.
It’s actually really clever and arguably superior to many other kinds of tax tokens. Even at low volume, the jackpot will accumulate over time so periodically the token would see a natural increase in buys as people will attempt to snag an ever-growing jackpot.
This system, while innovative, doesn’t leave much room for the average holder though. Not everyone can afford to constantly ape hundreds of dollars in hopes of landing the jackpot, especially when the buy and sell taxes are taken into consideration.
This is where ArbiPay shines in my opinion. This token was just released, and I immediately loved the concept: a printer token that includes a lottery mechanic built in.
Why does this work so well? Let’s break it down:
The two sets of tokenomics patch each other’s weaknesses.
Printers suffer from lack of hype and volume over time. The lottery tokens price out a certain segment of investors, as not everyone can afford to ape into the lottery consistently.
ArbiPay gives you both options: buy and HODL to collect reflections, or ape .1 ETH or more for a shot at the jackpot. This means constant buy pressure to maintain volume for reflections, while also giving the little guys a shot at earning despite the fact that it’s a lottery token.
Simple yet genius.
Arbitrum and the ARB Token
There are actually other factors at work here that in my mind paint a pretty clear picture for APAY as one of the most promising tokens to release in recent memory, at least as far as tax tokens are concerned. Namely, Arbitrum itself.
If this project released on any chain, I would still be bullish on it. However, the fact that it’s on Arbitrum adds an undeniable element of potential.
Arbitrum isn’t a ghost chain, it is one of the most active places in DeFi right now. There is plenty of volume and TVL on the chain to support high growth trajectories for any kind of project. The large market caps and recent successes of projects like Camelot and Vela prove as much.
Now you add on the fact that ArbiPay prints ARB, the brand new Arbitrum governance token, and you get a very interesting recipe for potential growth.
Airdrop jeeters and foundation FUD aside, there is little doubt in my mind that ARB will be a blue chip token for the foreseeable future.
“It has no utility.”
That never stopped Cardano.
The reality is, during the next bull run when new investors are streaming into DeFi looking for opportunities, people are simply going to buy ARB on principle. It’s the signature token of one of the only true fully functioning L2s. That’s all the narrative it needs.
So APAY isn’t just reflecting itself, or paying out in ETH or USDC or anything else. It’s printing ARB, which means that ArbiPay is actively supporting the Arbitrum ecosystem and reflecting a token that is almost sure to have very positive price appreciation as we head into the next bull market.
This makes sitting on a stack of APAY that much more comfy. You could do much worse in DeFi than accumulating ARB.
APAY Tokenomics and Lottery System
ArbiPay has a flat 10% Buy/Sell Tax. Here’s how the tokenomics work out:
- 40% Rewards
- 20% Treasury
- 20% Liquidity
- 20% Lotto
With each buy and sell, the jackpot grows, liquidity is strengthened, and enough is left over for ample rewards. For those who are not used to how these kinds of tokens work, essentially 4% (40% of the 10% tax) of the total amount of each buy and sell gets converted to ARB and reflected to holders, according to how much APAY you are holding in your wallet.
The more APAY you have, the bigger a piece of that 4% you will receive. It is divided among all holders proportionally.
The lottery system is straightforward enough. Each buy over .1 ETH may trigger the lottery.
.1 ETH offers a 1% chance, .2 ETH a 2% chance, and so on until 1 ETH, which gives the buyer a generous 10% chance to win.
Each buy is its own event, which means you can’t game the system by stacking buys or anything like that. So if you buy with 1 ETH for that 10% shot and don’t get it, you don’t get 20% odds if you put in another ETH. It’s still a 10% chance.
What’s great about the printer system is that anyone who apes the lottery and then sells to get their money back will end up printing everyone more ARB while also feeding the lottery at the same time.
Based Team + Great Launch = ?
It has to be said that teams can make or break a project. We all know this.
The ArbiPay launch was about as successful as they come. Starting liquidity was $30,000 raised in a private sale with reliable individuals in the DeFi space, branding is on point, Discord and Telegram vibes are great, and everything seems to be working just fine.
In fact, the first lottery winner came away with 2 ETH, and off of a .1 ETH buy no less.
It’s also outlined on their roadmap that this is just phase 1 of the project. The end goal is not to just be a another printer token. Though it’s only in its initial stages, barely a couple days old at the time of this article, it’s already looking good.
Also, the liquidity has already been locked and ownership renounced, so this project isn’t going anywhere. The team is solid so the project is working off of a great foundation.
Project Sustainability
The combination of a printer and lottery in one certainly seems more sustainable than either system on its own, which is a bullish sign in itself.
As anyone who reads my writings already knows, I am always interested in the intangibles when it comes to projects, however. What is the vibe like, how does the energy feel.
Positive energy and abundance cannot be separated conceptually. I consider the vibes and overall appeal (aesthetics, community, viral capacity, and so on) to be just as important, if not more so, than the tokenomics.
Needless to say, the vibes have been immaculate.
APAY is straight up printing, and already dropped a 2 ETH bomb on a lucky winner.
“Earning has never been easier on Arbitrum” indeed.
The project as a whole seems to be geared toward drawing attention to the Arbitrum ecosystem while also supporting the ARB token.
In a Twitter Spaces held on 4/7, it was also revealed that there will be added utility for the APAY token itself, as the platform adds on various casino games. The GambleFi narrative is hot right now, and a solid protocol that can put it all together with great tokenomics, website UI, and branding, has incredible potential.
A bucketload of alpha was dropped in that Twitter Spaces, so I highly recommend giving it a listen.
Nothing is guaranteed in crypto, and as always DYOR, but so far this is looking like one of the most promising new tokens on Arbitrum.
Follow me on Twitter for Updates on ArbiPay
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