Author: Cryptonaitive
On July 10, 2023, Binance announced that it would launch the 32nd Launchpad project Arkham. On the same day, Arkham announced that it was preparing to launch the world's first on-chain intelligence exchange, Arkham Intel Exchange.
On-chain intelligence exchange is also a new term. What is an on-chain intelligence exchange? How does Arkham handle on-chain intelligence trading? A reporter from Golden Finance will show you how to understand it in one article.
Arkham is an on-chain intelligence analysis agency. The name of the on-chain intelligence exchange it launched is Arkham Intel Exchange. Intel is the abbreviation of intelligence. In a nutshell, Arkham Intel Exchange is a market for buying and selling cryptocurrency wallet address intelligence.
Arkham also launched the crypto token ARKM, which Arkham called the first crypto intelligence token, and borrowed the "x-to-earn" concept to innovate the on-chain analysis market gameplay of "intel-to-earn".
Why Arkham launched an on-chain intelligence exchange
Arkham said it founded Intel Exchange after noticing two key trends in the on-chain analytics space:
1. Huge demand for on-chain analytics from traders, investors, journalists, researchers, and protocols — and others who lack the time and expertise to become proficient in on-chain analytics, but need clear and detailed analysis of blockchain activity.
2. Every day, more and more excellent on-chain researchers are participating in our community and other communities. These excellent researchers and detectives, despite having unique and useful expertise, currently lack a way to get paid for their skills.
Arkham’s Intelligence Exchange provides a way for these talented researchers to monetize their skills (intel-to-earn) and meet the growing demand for on-chain research in a scalable way by connecting both sides of the on-chain intelligence economy.
How Arkham Intel Exchange works
On-chain intelligence exchange structure
Arkham Intel Exchange involves four roles:
1. Bounty offerer: a person who offers a bounty for specific intelligence; 2. Bounty hunter: a person who hunts for intelligence to earn the bounty; 3. Intelligence dealer: a person who auctions off intelligence collected by himself or obtained from others; 4. Intelligence collector: a person who collects intelligence through auctions rather than targeted bounties.
Arkham Intel Exchange uses a bounty mechanism to match buyers and sellers of on-chain intelligence.
Anyone can post a bounty seeking some on-chain information for information about a cryptocurrency address or entity by locking up funds. These bounties can be fulfilled by "bounty hunters" (blockchain researchers or detectives) who will exchange intelligence in exchange for a reward.
Bounties can include things like address tag requests, and Arkham has no strict restrictions on the types of bounties that can be posted, but in the case of spam or low-quality bounty responses, staked funds will be penalized.
Some examples of envisioned bounties include: finding the wallet address of a hedge fund, locating the team wallet of a protocol, finding the real identity of someone impersonating a well-known person, victims of an attack pooling their resources to gain intelligence on the attacker, and trading firms may want to buy out their own wallets before competitors find out.
Arkham stipulates that any intelligence purchased or sold on the exchange has a 90-day exclusive access period, during which only the user who funded the bounty can access the submitted intelligence (after verification by the Arkham Foundation). After the 90-day period expires, the intelligence will be added to the Arkham platform and made available to the wider Arkham community. This gives the purchaser time to use the intelligence while ensuring that the requested intelligence is not restricted forever.
Multiple users can contribute to a public bounty by locking up an amount of funds equal to the original request. This will allow each bountying user access to the data for a 90-day retention period. If the original bounty holder wishes to continue to be the sole recipient of the intelligence, they can attempt to buy out subsequent users.
The Impact of Information Exchange on the Information Market
Intel-to-earn and ARKM tokens
Arkham also launched the crypto token ARKM, which Arkham calls the first crypto intelligence token. Intel-to-earn is the core function of ARKM, which is supported by an incentive system formed by ARKM rewards and discounts. The purpose is to form a positive feedback loop to support the Arkham ecosystem to become a global blockchain intelligence center.
The ARKM incentive system consists of two parts:
ARKM Rewards: Rewards for behaviors that benefit the Arkham ecosystem;
ARKM Discount: The platform offers discounts of up to 60% to those who pay with ARKM or are ARKM holders.
ARKM Rewards
The first component of the ARKM incentive system is a rewards program where users can earn ARKM for actions that are beneficial to the Arkham community. Rewards will vary depending on the state of the ecosystem at a given time, but may include user referrals and the production of research analysis.
Grants: ARKM grants will support projects that contribute to the ecosystem, especially those working on solving the intelligence oracle problem to achieve full decentralization of exchanges.
Ecosystem Partner Rewards: The vast majority of on-chain detectives are concentrated on Ethereum. Other blockchains will be able to offer rewards to Arkham users for contributing on-chain analysis and other content to their communities. Rewards can be in the partner’s native token or ARKM.
ARKM Discount
ARKM discounts are another major aspect of the ARKM incentive system. There are two ways for users to earn discounts using ARKM on the Arkham platform:
Pay with ARKM: Get a 20% discount when paying with ARKM on the platform.
Holder discount: Holders of ARKM can get a discount of up to 50%. The discount rate varies depending on the amount of currency held and the holding period. The specific discount rates are shown in the table below. In order to prevent the system from being abused, such as short-term lending, users must lock ARKM for at least 30 days to get the holder discount.
These discounts can be combined, i.e. users can pay ARKM and receive a 20% discount, while also retaining ARKM holdings to receive a holding discount, up to 60%. ARKM payment discounts are implemented through browser wallets. Holding discounts are implemented through simple auditable smart contracts, and users can withdraw tokens at any time after the lock-up period ends.
in conclusion
As we all know, there are many on-chain analysis companies in the crypto industry. Arkham borrowed the concept of "x-to-earn" as "intel-to-earn" and made new innovations in the on-chain analysis market.
Arkham said the vision of Arkham Intel Exchange is to build a decentralized "intel-to-earn" economic system driven by smart contracts, in which any on-chain detective can earn income based on his or her skills and experience.
It remains to be seen how Arkham Intel Exchange will stimulate the on-chain analysis market.