Tokenomics

Tokenomics Regulatory Framework

The regulatory framework that distinguishes utility tokens versus security tokens is based on the characteristics of the tokens, their purpose, and their use. It is important to note that the GalleryArc token will fall under the regulatory framework of a utility token. Stakeholders should also be aware of our strict commitment to KYC and AML regulations.

Utility tokens are tokens that provide holders with access to a product or service, and are not necessarily intended to be investments. However, these tokens can be used to facilitate crowdfunding campaigns, as they can be used to reward contributors for their participation and to incentivize them to continue to support the project. They can also be utilized for transactions and provide stakeholders with more opportunities inside the platform's product/service. Utility tokens are not subject to securities regulation and can be freely traded.

Security tokens are tokens that represent a security, such as a share in a company or a debt instrument. They are subject to securities regulation, and as such, need to be registered with the relevant regulatory bodies. They cannot be freely traded and must be sold in compliance with securities laws.

Token Technology

The GalleryArc token, an Ethereum-based token, is a critical component of a new marketplace. Ethereum is a distributed computing platform built on blockchain technology that is open source and geared toward smart contracts. Ethereum is a distributed virtual machine that lets end users create smart contracts for transactions.

The Ethereum blockchain maintains stateful applications known as DApps which utilize smart contracts to create a more secure and transparent environment for users to interact with.These contracts are secured via cryptography and can be used to verify or enforce contract execution inside decentralized applications within the Ethereum ecosystem.

Value Flow (Link to view attached)

Gas/Token Tax

The ability to modify a token's tax distribution gives GalleryArc the opportunity to strategically and continuously distribute tokens and funds to stakeholders of our project. The distribution breaks down into four parts: Project Funding (25%), Treasury (Arc Placement Share) (25%), Burn (25%) and Revenue-sharing (25%).

Project Funding is the portion of the tokens that are distributed to the project’s development teams, investors and other stakeholders. This portion of the tokens will be used to fund the project itself, such as covering costs for development, marketing and other activities.

The Treasury (Arc Placement Share) is the portion of tokens that are reserved to a particular group of current and/or potential investors. The treasury may also be used to support business operations.

The Burn portion of the token distribution is the portion of tokens that are burned, or removed from circulation permanently. This is done in order to reduce the supply of tokens in turn increasing their value.

Finally, the Revenue-sharing portion of the token distribution will be used to reward stakeholders for platform engagement and to incentivize long-term users of the platform. Revenue-sharing will be a critical factor in ensuring the success of GalleryArc and is an innovative business opportunity that we believe will have a positive impact on the entire community and its economy.

​​Vesting Schedule (preliminary):

The vesting schedule is designed to ensure a long-term alignment of interests between the founders, employees, investors, public sale participants, liquidity pool participants, advisors, strategics, marketers, community members, amongst other stakeholders. It is important that we ensure that all parties involved in the project have an incentive to remain dedicated to the project and help it succeed.

Different vesting schedules allow stakeholders to receive their tokens over a period of time, rather than all at once. This ensures that the stakeholders are continuously involved in the project and have an incentive to help it succeed. Additionally, the vesting periods help to discourage stakeholders from dumping their tokens on the market and crashing the token price.

Founders: 25% of the tokens will be allocated to the founders of the project. This allocation will be subject to a 6 month cliff, followed by a 3 year vesting period.

Employees: 15% of the tokens will be allocated to employees of the project. This allocation will be subject to a 6 month cliff, followed by a 2 year vesting period.

Investors: 15% of the tokens will be allocated to investors of the project. This allocation will be subject to a 6 month cliff, followed by a 4 year vesting period.

Public Sale: 10% of the tokens will be allocated to participants in the public sale. This allocation will be subject to an 18 month vesting period.

Liquidity Pool: 10% of the tokens will be allocated to participants in the liquidity pool. This allocation will be subject to a 1 year vesting period.

Advisors: 5% of the tokens will be allocated to advisors of the project. This allocation will be subject to a 6 month cliff, followed by a 4 year vesting period.

Strategy: 5% of the tokens will be allocated to strategic decisions for the growth of the project. This allocation will be subject to a 3 month cliff, followed by a 1 year vesting period.

Marketers: 5% of the tokens will be allocated to marketers of the project. This allocation will be subject to a 1 year vesting period.

Community: 5% of the tokens will be allocated to community members. This allocation will be subject to a 3 month cliff, followed by a 2 year vesting period.

Staking: 5% of the tokens will be allocated to stakers. This allocation will be subject to a 6 month cliff, followed by a 5 year vesting period.

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