Aark's Commitment to Transparency: Building Trust for the Community

Transparency is a cornerstone in DeFi, where trust is built through openness and accountability. It allows users to understand the mechanics of the protocols they engage with, ensuring informed decisions and trust in the system. At Aark, transparency is a fundamental principle that guides our operations. Our mission is to bring the best financial experience onchain while preserving the benefits of DeFi narratives, especially transparency. By being open and transparent, we aim to build stronger trust within our community, encouraging confidence among Aarkadians and attracting new users to our ecosystem.

Today, as part of our commitment to transparency, we are excited to introduce a new way for $AARK holders to stay informed: an official Dune page dedicated to $AARK Buyback & Distribution.

Transparency in the Buyback & Distribution Model

Token Buyback & Distribution plays a vital role in enhancing the value of $AARK and rewarding long-term token holders. Transparency ensures token holders to observe how funds are allocated and utilized, providing clear insights into the buyback process and its impact on generating token holder’s value. Up to this date, we announced our buyback records via our official media channels including X and Discord. Here’s how we’ve improved our method of communicating with Aarkadians regarding Buyback & Distribution:

Official Dune Dashboard for $AARK Buyback & Distribution

Here’s what you can track on $AARK Buyback & Distribution Dashboard:

Dune

• Automatically calculates accumulating staker’s revenue (40% of traing fee from classic mode) When extra funds(such as protocol revenue from the team) are put into the buyback vault, the graph immediately considers the period in which the funds were accumulated
• The buyback amount is deducted from the vault as soon as the buyback result is announced. Due to front-running issues, the change to the vault will be applied only after the announcement | | Distribution History | - Shows the total distributed $AARK to stakers | | Buyback History | - Shows the $AARK buyback history
• $AARK that were sent to $AARK Vault is indicated as Kept $AARK
• $AARK that are burned is indicated as Burnt $AARK | | Funds Available in USD | - Remaining balance in USD available to buyback $AARK | | Cumulative Buyback in USD | - Shows the cumulative buyback amount in USD up to date | | Cumulative Buyback in $AARK | - Shows the cumulative buyback amount in $AARK up to date | | Remaining $AARK in Vault | - Shows the remaining balance of $AARK in the vault after deducting distributed and burnt $AARK | | Expected $AARK Staking APR | - Shows the expected APR of $AARK distributing to stakers
• Total distributed + Total emitted / Total staked |

Advantage of $AARK Buyback & Distribution Model

Our new Buyback & Distribution Model is designed to create a sustainable ecosystem. It addresses the limitations of traditional models, such as the Fee-sharing Model and the Buy & Burn Model.

Problem 1: Limitations of the Fee-sharing Model

Distributing fees directly to token holders might provide immediate incentives but doesn’t consistently drive long-term token demand. For example, if GMX’s $100M fee were used for buybacks instead of direct distribution, the GMX market cap would have potentially been much higher. This highlights the inefficiency of the fee-sharing model in promoting long-term value.

Problem 2: Limitations of the Buy & Burn Model

The Buy & Burn model reduces the total supply to boost token value, but its benefits are indiscriminate. It’s challenging to track which type of holders benefit, often rewarding short-term speculators as much as long-term investors.