In preparation for Sapphire V3, we wanted to take the chance to explore the idea of a token split with the ARCx community and token holders.
To preface this discussion, it is pertinent to note that ARCx’s vision during V2 of the protocol was to become a governance-minimised central bank that issued credit against various DeFi assets through its native stable coin, STABLEx. The ARCx Governance Token was designed to be the core mechanism for governance of this system.
Since then, we have identified a significant opportunity for Sapphire v3 which requires new incentives to help foster growth of the DeFi Passport. In addition to this, we and many other community members take the view that the high token price is negatively affecting discoverability for ARCx - which in turn may hinder adoption of V3.
With this in mind, we would like to propose a 1:10,000 token split - resulting in a maximum supply of 100,000,000 ARCx Governance Tokens. As an indication, if you hold 1 ARCx worth $7,000 pre-split, you would get 10,000 ARCx post split, each worth $0.70. The core function of the ‘post-split’ ARCx Token would still be to govern the protocol, and use it as a tool to incentivise growth and integrations with other protocols.
It would be great to get community feedback on this prior to moving to a snapshot vote.