$ARENA Token
The $ARENA token is the native security token of the TradeArena protocol. It is issued as an ERC-3643 compliant Real World Asset (RWA) token, implemented via the T-REX Protocol — not a plain governance or utility token. Holding and transferring $ARENA for regulated activities requires an on-chain identity managed by the ERC-3643 identity registry.
Token Role in the Protocol
$ARENA serves four distinct functions within TradeArena:
| Function | How $ARENA is Used |
|---|---|
| Governance Weight | Staked $ARENA votes on protocol parameter changes (circuit breakers, prize pool formula, collateral rate) |
| Bond Issuance Collateral | Market makers lock $ARENA when creating orders; the bond equals 3.81% of notional value |
| Inventory Guarantee | Inventory validators stake $ARENA to back physical-inventory attestations |
| Identity-Linked Transfer | Trade Finance and Security Token operations require ERC-3643 identity checks before transfer |
Relationship to Other Token Types
The protocol uses three distinct token classes, all tracked in the erc3643_tokens table:
| Token Type | Standard | Issuer | Purpose |
|---|---|---|---|
$ARENA | ERC-3643 | TradeArena Protocol | Governance, staking, bond collateral |
guarantee | ERC-3643 | Banks (via Centrifuge) | Bank-issued proof-of-inventory instruments |
bond | ERC-3643 | Market Makers (via Tokeny) | Performance bond tokenisation |
Each token class has its own compliance claims and transfer restrictions enforced on-chain.
ERC-3643 Compliance Matrix
Not every $ARENA operation requires identity-linked transfer. The rule is determined by the activity tier:
| Activity | Transfer Standard | ERC-3643 Required |
|---|---|---|
| General Trading (commitments, yield) | Plain ERC-20 | ❌ No |
| Trade Finance (commodity bonds, guarantees) | ERC-3643 | ✅ Yes |
| Security Token Issuance (bond minting) | ERC-3643 | ✅ Yes |
| Staking & Validator Delegation | ERC-3643 | ✅ Yes |
| Financing Subscriptions | ERC-3643 | ✅ Yes |
This split keeps the protocol accessible to general traders while enforcing regulated transfer rules where institutions and securities law require them.
Acquiring and Holding $ARENA
Initial Allocation
| Allocation | Percentage | Purpose |
|---|---|---|
| Protocol Reserve | 30% | Validator staking incentives & insurance backstop |
| Market Makers | 20% | Bootstrapping order liquidity |
| Community & Ecosystem | 25% | Developer grants, partnerships |
| Team & Advisors | 15% | Long-term vesting (4-year cliff) |
| Public Sale | 10% | Initial market distribution |
Acquiring $ARENA
- General traders: Purchase through supported DEX pools (no ERC-3643 compliance required for spot trading)
- Validators and market makers: Must complete ERC-3643 identity registration before staking or posting bonds — see Identity & Compliance
- Institutions: Participate via Tokeny-issued bond tokens or Centrifuge-issued guarantee tokens under bank authority
Holding Requirements
- General holders: No identity requirement — $ARENA can be held in any wallet
- Staking (validator delegation): Requires
stakingcompliance claim on your ERC-3643 identity - Bond issuance: Requires
accreditationandcountry_codeclaims - Guarantee token interaction: Requires bank-authority claim issued by a trusted issuer
Supply Parameters
| Parameter | Value |
|---|---|
| Maximum Supply | Fixed at protocol genesis |
| Collateral Rate | 3.81% of order notional (bond) |
| Prize Pool Base | 10% of order value (scales with traders) |
| Insurance Premium | 0.5% (50 bps) on each settled trade |
| Staking Minimum | Defined per validator tier in inventory_validators.staked_arena_amount |
Related Pages
- Bond Issuance — How $ARENA is locked as performance bond collateral
- Staking & Governance — Delegating $ARENA to validators and voting on proposals
- Identity & Compliance — ERC-3643 identity registration required for regulated activities
- Inventory Validation — Validator staking with $ARENA