How it works
Intro
CryptoArena introduces new terminology and innovative concepts, trying to push the envelope of the currently (more or less) established standards, in what is already a groundbreaking industry.
We understand it can get confusing.
This plain language section is meant to help further explain, step by step, all the pieces that compose the core mechanism enabling our unique proposition: the “Self-Decentralization Process”, and most importantly, what it all means for you.
Check Technology if that's what you're looking for.
In a Nutshell
Self-Decentralization is the process by which CryptoArena increasingly becomes a 100% non-profit over time, and consequently, distributes incrementally larger shares of platform generated revenue to its users.
Our Mission, and the processes designed to deliver it, are permanent, immutable & secured through extensive use of smart contracts.
Disambiguations & Terminology
It's a Process
Meaning it features a “start state”, an “end state”, and a pre-set framework of rules and activities determining “change”, to go from former to latter.
achieving Self-Decentralization
Means progressing until reaching what we refer to the “end state”, achieved through the completion of the “process” defined above.
What we “decentralize”
Is the ownership of the holding entity of the company operating the network, business & platform, and therefore, claims on its assets, profits, and so on. Founders & investors too. No exceptions. Hence “self”.
Key Components
A Sidechain is a blockchain built as an added layer of another blockchain, featuring own rules and assets, while benefitting from the mainchain’s features and selling points too.
CryptoArena uses an advanced kind of sidechain, specialized for the Polkadot ecosystem, known as a Parachain ("Parallel Blockchain").
A Parachain
Is an application-specific data structure that is globally coherent and validatable by the validators of the Polkadot Relay Chain.
As suggested by the name, they are able to parallelize transaction processing, rather than operating them sequentially, thus achieving the greater scalability of the Polkadot system. They share in the security of the entire Polkadot network and can communicate with other parachains through XCMP.
Learn more about parachains here. The Relay Chain is the backbone of the Polkadot network, more here.
ARENA Security Tokens
Our custom Security Token used for three purposes, among which, most importantly, acting as “beacon” to our systems, for primary distributions (of revenue).
Learn more about ARENA Tokens here
The Glory System
Is a competitive, game-like, points scoring system that regulates secondary distributions (of revenue). Bigger score -> bigger share. All Users automatically earn points through all fee-bearing activity on CryptoArena’s platform, and thus benefit from distributions. No opt-in is required.
The BuyBack Bonus ( "BBB" )
Is an extra revenue stream provided as compensation to Shareholders for the value of their pre-emptive consensus to the self-decentralization process. . Only ARENA Security Token Holders have claims on BuyBack Bonus funds. Consensus is a hard requirement to access our tokens for everyone, including investors, founders & staff.
Not a "burning" mechanism
PoRD is a custom flavor PoA featuring a similar, but fundamentally different, mechanism to a PoB, because tokens are not destroyed or locked & forgotten. The BBB is a repurchase of shares (at a premium) by the operating non-profit, and the shares are automatically and immediately allocated to general revenue distributions as a consequence of this transaction.
In practical terms, completing “self-decentralization” means allocating all outstanding shares, sold previously to raise funds for development & operations, to public revenue distributions.
Various Smart Contracts
Are utilized to automate and enforce terms, payment procedures, inner processes, governance and also interactions between Users in our advanced copy trading solution.
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