AIP-010: Tokenomics V1

AIP-010 Summary

AIP-010 establishes Arrow's first unified tokenomics framework for the $ARROW token:

• Total supply is fixed at 100,000,000 $ARROW. No new tokens will be minted under this framework, and all deployment draws from the existing DAO treasury.
• $ARROW has three active utilities in 2026: governance voting, slashable manufacturing bonds (AIP-009), and contributor compensation (AIP-004).
• Treasury deployment is governed by an annual cap that the DAO must approve by governance vote each year. The Year 1 (2026) cap is 5,000,000 $ARROW: 1,500,000 for a contributor grants program, 500,000 for manufacturing rewards, and 3,000,000 for long term engineering project funding.
• Each conversion of treasury $ARROW to USDC requires its own governance vote covering amount, venue, counterparty, and pricing.
• Slashed manufacturer bonds compensate affected customers first, and any excess is burned. The DAO never retains slashed tokens as revenue.
• Creating a DAO owned liquidity pool is not authorized by this AIP and remains a separate future governance action following legal review.
• Phase 2 and 3 mechanics (operator staking, network usage rewards) are described as a roadmap only and are not binding.
• $ARROW does not entitle holders to profit or dividends.

You can read the full text for AIP-010 here

Motivation

Arrow has operated for over three years without a unified tokenomics framework while roughly 76.5M $ARROW (~76% of supply) sits in the DAO treasury with no formal plan. AIP-009 introduced the first protocol native token utility, the DAO funds multi year engineering projects from a treasury that is mostly $ARROW, and bounty first compensation under AIP-004 only motivates contributors if there is a credible path to liquidity and utility. AIP-010 connects these pieces into one framework and gives the DAO a governance controlled way to deploy treasury $ARROW toward real protocol actors: contributors completing work, manufacturers shipping products, and projects building aircraft.

Outcome if vote passes

AIP-010 will have been ratified by the voting Arrow community. The features introduced in AIP-010 will become standard and must be adopted according to the specification. Passing this vote also authorizes the Year 1 (2026) treasury deployment cap of 5,000,000 $ARROW across the three buckets defined in the specification. Individual conversions of treasury $ARROW to USDC will each still require their own governance vote.

Further Context

Full AIP: AIP-010
Forum Discussion