Allocation of Governance Weight

One of the core concepts of the Arca Chain ecosystem is to achieve network governance through a decentralized approach, ensuring fairness and participation of all participants in the network. As the fundamental asset of the entire network, Real World Assets (RWA) provide a solid foundation of value for the Arca Chain network. Each Arca Mobile node holder is one of the shareholders of these physical assets. This design distributes actual beneficial ownership across the network, thereby ensuring participants can share the benefits brought by physical assets, closely linking the physical world with the digital world.

The allocation of governance weight in Arca Chain is based on the following key factors:

• Task Completion: The completion of tasks by nodes in the network is an important factor in determining their governance weight. The more tasks a node completes and the higher the quality, the greater its governance weight in the network. This design not only incentivizes nodes to actively participate in network activities but also ensures that the actual distribution of governance power aligns more closely with the actual contributions of the nodes. Specifically, for mobile nodes that are shareholders of gold mines, their task completion will also affect their share in the distribution of gold mine profits, creating a positive feedback loop of "tasks-rights-profits."

• ARCA Token Holdings: Although the TwPoS mechanism introduces task-weighted proof of stake, the amount of ARCA tokens held is still one of the important factors in determining governance weight. The relationship between token holdings and governance weight ensures that nodes have an adequate say in the decision-making process. However, this weight is adjusted by task completion to ensure fairness in the governance process, preventing governance weight from being overly concentrated in the hands of a few nodes holding a large number of tokens.

• Participation in Mining and Staking Activities: These activities not only bring token rewards but also enhance the governance weight of nodes. Mining and staking behaviors are directly linked to a node's governance weight. This design encourages nodes to actively participate in these activities as they are crucial for the network's security and ongoing operation. Particularly, the output of gold mines is directly tied to the mining and staking activities of nodes, ensuring that network participants can share the gold mine's profits.

• Contribution of BTC Mining Nodes: Nodes participating in dual mining receive additional governance weight due to their significant support for network security and computational power.

• Recommendation System and Proxy Voting: Nodes are allowed to participate in governance through recommendation or delegation. This recommendation mechanism is similar to proxy voting, where nodes can delegate their voting rights to another trusted node. To prevent excessive centralization of power, each node can only accept a limited number of delegations. The actions of the recommending node will directly affect the governance weight of the recommended node, making the network's social choice mechanism more complex and flexible.

• Malicious Behavior Prevention Mechanism: A malicious behavior variable is introduced to prevent harmful activities from impacting network governance. If a node is found to engage in malicious behavior, its M value immediately becomes 0, causing the node to lose its governance weight and voting rights. This design ensures that malicious behavior will result in the loss of participation rights and prevents the node from affecting network governance again.