ARKFI Token Migration Plan

The Ark Fi journey to 100% utility revenue and zero "ponzinomics".

Overview

The ARKFI token is no longer contributing to the revenue of the ecosystem and there is not enough interest in the Ark Vault (ROI Dapp) to support the inflating liabilities.

With the long-term success of Ark investors in mind, the decision has been made to eliminate the future liabilities of the ARKFI token and give current Ark Vault investors the option to migrate their ARKFI token holdings into the Legacy NFT.

Legacy NFT

The Legacy NFT is a yield-generating asset that is 100% backed by real-world utility products with zero "ponzinomics".

After the migration is complete, the Legacy NFT will be the only way to earn in the Ark Fi ecosystem.

Yield for the Legacy NFT is generated by all current and future utility revenue streams. This includes Ark Lite, the next major business category being introduced to the ecosystem.

Utility Business Categories

1. Crypto Banking Products - Existing

2. Privacy Products - Q1 2024

Revenue Model (Profit Sharing)

• The Legacy NFT rewards pool will receive 60% of the profits generated by the utility products.

• The Ark Treasury will receive 40% of the profits generated by the utility products.

The Legacy NFT contracts will be upgraded and include further enhancements. More information Is outlined later in this document.

Ark Foundation

• All participants in the Ark Foundation (https://app.arkfi.io/foundation) are encouraged to withdraw any remaining balance as soon as possible.
• The Ark Foundation will be retired on Monday October 30, 2023.

Investors who don't want to migrate

• Those who don't want to use their ARKFI tokens to purchase a Legacy NFT can sell their ARKFI tokens on the Dapp Swap (https://app.arkfi.io/swap) page until Monday October 30, 2023.
• The current sell cap of 200 ARKFI tokens will be removed. You will still be limited to one sell every 24 hours.

Migration to Legacy NFT

• The Legacy Savings Account (LSA) contract (https://app.arkfi.io/lsa) will perform the migration and allow investors to contribute their ARKFI token value (tax free) towards a Legacy NFT.
• Once the Swap contract is closed on October 30th, any remaining BUSD liquidity will be migrated to the LSA fund.

• At the conclusion of the Swap contract on October 30th, the ARKFI token price will be adjusted to $0.10 per token for deposits into the LSA.

• The token transfer tax of 10% will be removed or reduced to 2%.

• The LSA will remain open indefinitely to allow the minting or upgrading of Legacy NFTs that have been partially paid for during the migration process.

BUSD can be deposited into the LSA contract to complete the minting or upgrading of a Legacy NFT until the new Legacy NFT contracts are deployed.

Ark Vault

• The Ark Vault (https://app.arkfi.io/vault) will remain in operation until the LSA fund is depleted.
• Once the LSA fund is depleted, the Ark Vault will be retired and any BNB gas remaining in your auto allocation pool will be refunded.

Changes to Legacy NFT

To allow investors with smaller ARKFI token balances to continue their investment with a Legacy NFT, three new Legacy NFTs will be added to the portfolio.

Current NFT levels

• Silver: $1,000

• Gold: $4,000

• Platinum: $10,000

Additional NFT levels

• Copper: $100

• Tin: $250

• Bronze: $500

• Iridium: $50,000

• Diamond: $100,000

Availability of New NFTs

• LSA investors who deposit enough to mint one of the new NFTs will be airdropped the NFT when the new Legacy NFT contracts are deployed.

  • Silver, Gold and Platinum NFTs will be automatically minted or upgraded by the LSA and deposited in your wallet.

  • Copper, Tin and Bronze NFTs will be airdropped when the new Legacy contracts are deployed.

• A minimum of $100 will need to be deposited in an LSA account to mint a Copper NFT.

• The LSA will be retired when the new Legacy NFT contracts are deployed.

• Investors who have a remaining LSA account balance of less than $100 will be issued a "mint credit" that can be applied towards the future purchase of an NFT.

A mint credit will not be transferable between wallets, however, once the mint credit is used, the newly minted NFT can be transferred to a different wallet.

LSA Balance Allocation Example

To illustrate how an LSA balance will be allocated when the new Legacy NFT contracts are deployed, below is a scenario where an LSA account was attempting to upgrade from a Gold NFT to a Platinum NFT but was only able to save 5800 BUSD, falling 200 BUSD short of the 6000 BUSD required to mint a Platinum NFT.

Example Balance Allocation:

LSA Account Balance = 5800 BUSD

• 1 Gold NFT Minted (4000)

• 1 Silver NFT Minted (1000)

• 1 Bronze NFT Minted (500)

• 1 Tin NFT Minted (250)

• Mint Credit (50)

Capital Pool

• The total value of the Legacy NFT capital pool will remain at $6,000,000.

• In the future, the capital pool could be increased to accommodate the growth needs of existing utilities or the introduction of new utilities.

Quantity of NFTs

• When the new Legacy NFT contracts are deployed, there will not be a fixed number of NFTs at each level.

• Any NFT level can be purchased at any time, until the aggregate value of the NFTs minted equals $6,000,000.

• An NFT level will not be available if the balance remaining in the capital pool is less than the value of the NFT level. For example, if the capital pool is $5,995,000 (a balance of $5,000 remains), a Platinum NFT would not be available.

NFT Yield and Payouts

The new Legacy NFT yield model is still under development and the exact method for payouts will be subject to change as the smart contracts are being coded.

• The new ownership and payout model will be more akin to staking, where the NFT represents a fixed value (based on the NFT type) in the staking pool.

  • The pool size is equal to the total value of all NFTs minted at any given time, up to $6,000,000.

  • Unlike traditional staking, a Legacy NFT can be sold or transferred to another person without a tax.

• Rewards will be distributed weekly from 60% of profits generated by the utility businesses during the previous one-week period.

• Each NFT payout will be calculated based on its % ownership of the capital pool and the Yield Boost value attached to the NFT (see NFT Yield Boost section below).

NFT Yield Boost

This concept is still under development and the exact method will be subject to change as the smart contracts are being coded.

• Ark is developing a way to incentivize investors to purchase a Legacy NFT sooner than later.

• The incentive will generate higher rewards for early investors who mint an NFT before others.

• As the aggregate value of NFTs sold increases (remaining capital pool decreases), the yield paid to an individual NFT will be less than previously minted NFTs of the same level.

  • For example, a Silver NFT minted when $5,000,000 remains available in the capital pool will pay a higher yield than a Silver NFT minted when $1,000,000 remains available in the capital pool.

• A "Yield Boost" will be programmatically assigned to an individual NFT and modify the rewards it pays to the holder.

• The "Yield Boost" will be applied to minted NFTs (when the Legacy NFT contracts are redeployed) based on the date and time the Legacy NFT was minted.

  • Time stamps of the original NFTs were reshuffled with the previous contract upgrades so a random drawing may be required to sequentially order all existing NFTs when the new contracts are deployed.

When the new Legacy NFT contracts are deployed, upgrading NFT levels (from Silver to Gold for example) will no longer be possible.

NFT Future Valuation

• The future market value of a Legacy NFT is based on how much yield it produces rather than the "rarity" of the NFT.

• The earning potential of a Legacy NFT will not be capped, and it will pay rewards as long as profits are being generated by the ecosystem of utilities.

NFT Marketplace

• Once the $6,000,000 capital pool has been depleted and all Legacy NFTs have been minted, an NFT marketplace will be introduced where NFT holders can safely sell their Legacy NFTs peer to peer.

Blockchain Migration

• The Legacy NFT contracts will ultimately be migrated to Polygon and rewards will be paid out in USDT.