DOX To Earn Explained: Will Arkham Drive Market Growth with D2E?

I. What Is DOX To Earn?

The term 'DOX' originates from the phrase 'dropping dox,' which refers to the act of revealing private or sensitive personal information about an individual without their consent. This practice is widely considered a severe invasion of privacy and can have serious repercussions.

The term 'DOX to Earn' arose subsequently, following Arkham's introduction of its 'Arkham Intel Exchange' platform, initially termed 'Intel to Earn'. The Arkham Intel Exchange platform enables users to:

• Buy and sell intelligence related to the on-chain activities of any crypto wallet address.
• Post bounties for specific on-chain intelligence, rewarding researchers who successfully provide the requested data.

II. How the Arkham Intel Exchange Works

1. 1. For Buyers

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3.      Users seeking specific intelligence can initiate the process by posting a bounty, which involves staking a certain amount of $ARKM tokens. This staked amount serves as the initial reward.
4.     Once the bounty request and reward amount are listed on the Arkham Intel Exchange, other interested users can contribute to the pool by staking an amount of $ARKM equal to or greater than the initial stake. This action increases the total reward pool for that specific piece of intelligence.

Exclusive Access Mechanism:

     If the original bounty poster wishes to keep the acquired intelligence private and not share it with other contributors, they have an option to effectively "buy out" the others. Based on platform examples, this involves the initial poster staking a significant additional amount of $ARKM. The contributions from the other stakers are then returned to them, and the total bounty, now potentially higher and solely funded by the initial poster, ensures they receive exclusive access to the intelligence once found.

Bounty Hunter Submission and Verification Process:

• - Submission & Stake: Bounty hunters who find the requested intelligence submit it to the exchange for verification. This requires the hunter to stake a minimum of 10 $ARKM as a form of deposit.
• - Verification & Payout: If the exchange successfully verifies the accuracy and relevance of the submitted information, the bounty hunter becomes eligible for the reward. They have two options:
  1. Receive the full bounty amount plus their returned 10 $ARKM stake after a 15-day holding period.
  2. Withdraw the reward immediately, but incur a 10% fee.
• - Incorrect Information Penalty: If the submitted information fails verification (is deemed incorrect), the bounty hunter forfeits the 10 $ARKM they staked during submission.
• Illustrative Example:
• To make this clearer, consider this simple scenario:
• - Alex Posts Bounty: Alex wants information about Investment Fund X and posts a bounty on the Arkham Intel Exchange, staking 1000 $ARKM.
• - Brian Adds to Pool: Brian is also interested in this information and stakes an additional 1000 $ARKM. The total reward pool is now 2000 $ARKM for potentially shared intelligence.
• - Alex Seeks Exclusivity: Alex decides he wants exclusive access. He stakes an additional 2000 $ARKM. Consequently, Brian's 1000 $ARKM stake is returned to Brian. The total reward, now solely funded by Alex for exclusive access, becomes 3000 $ARKM (Alex's 1000 initial + 2000 additional).
• - Criss Finds and Submits: Criss, a bounty hunter, finds the information about Fund X. He submits it to the Arkham Intel Exchange for confirmation, staking the required 10 $ARKM.
• - Criss Gets Paid: The information is confirmed as accurate. After the 15-day period, Criss receives the 3000 $ARKM reward along with his original 10 $ARKM stake returned.
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• 2. For Sellers

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• Individuals holding intelligence they believe is important and valuable can list it for auction on the Arkham Intel Exchange. This mechanism operates similarly to NFT marketplaces:
• - Listing Intelligence: The provider posts the intelligence they possess onto the platform for auction.
• - Auction & Sale: Interested parties can bid on the listed intelligence.
• - Receiving Proceeds: The seller receives the final auction amount 15 days after the auction concludes successfully.

Submission Stake Requirement:

     To submit intelligence for auction, the provider must stake a minimum of 10 $ARKM for each submission. This staked amount acts as a deposit and will be forfeited if the submission is not approved or fails the platform's verification checks.

• 3. Controversies Surrounding DOX To Earn

•      The launch of the Arkham Intel Exchange sparked significant controversy within the crypto community. Critics argued that the platform disregarded fundamental blockchain privacy principles—a core tenet often valued since the market's inception. This perceived ethical conflict led many in the community to rebrand Arkham's proposed 'Intel to Earn' model with the more critical and cautionary moniker, 'DOX to Earn'.

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• The controversy intensified further due to the Arkham platform's backing by two prominent AI companies, Palantir and OpenAI. Palantir's known past work with government security organizations like the CIA and FBI particularly fueled community concerns about potential surveillance or control by these agencies via the platform.
• The sheer novelty of the 'DOX to Earn' model also presented an obstacle, requiring the platform to implement effective strategies for attracting and guiding users on proper platform usage, partly to avoid excessive $ARKM token inflation.
• Additionally, Arkham faced several unresolved issues and hurdles:
• - Information Accuracy: Arkham had not outlined clear criteria for evaluating the accuracy of the information users listed for sale on its platform.
• - Significant Competition: While the 'Intel to Earn' or 'DOX to Earn' model was new, it directly impacted established major players in the blockchain analytics space, such as Nansen. This raised questions about whether such large companies would allow this disruptive model to develop unchallenged.

• 4. Growth Drivers for DOX To Earn

•      Several factors were identified as potential growth drivers for the 'DOX to Earn' model and the Arkham Intel Exchange:
• - Government and Institutional Adoption: A significant, albeit controversial, potential driver was the platform's utility for government or institutional entities. This could include using the Arkham Intel Exchange to trace citizens' on-chain activities for purposes like tax enforcement. Conversely, a potential positive application involved leveraging the platform to track the activity of hackers, potentially aiding in mitigating damages from hacks and exploits.
• - Rising Demand for On-Chain Intelligence: The general need among investors for actionable on-chain data tends to increase, particularly during market recovery and growth phases (bull cycles). Many investors seek to identify high-performing wallets or entities ("alpha") to potentially emulate their strategies for profit. Arkham's platform aimed to serve this demand.
• - Centrality of the $ARKM Token: The operating model revolving around the $ARKM token was also a key factor:
  1. $ARKM served as the primary currency for transactions within the Arkham Intel Exchange (e.g., posting bounties, paying for intelligence).
  2. Therefore, an increase in the demand for buying and selling on-chain information on the platform would naturally drive demand for users to acquire and use $ARKM.
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• 5. Did DOX To Earn Explode Like P2E or M2E?

•      To evaluate whether DOX to Earn could have achieved explosive growth comparable to past trends, let's revisit how Play-to-Earn (P2E) and Move-to-Earn (M2E) achieved their booms:
• - Play-to-Earn (P2E): Its explosion was largely driven by the appreciating prices of both governance tokens and in-game reward tokens. This fueled demand for NFTs required to play and earn, attracting a constant stream of new users anticipating rapid returns on their investment.
• - Move-to-Earn (M2E): Fundamentally, the M2E model and its boom shared similarities with P2E and GameFi, typically involving three core components: a governance token, a utility/reward token, and NFTs. It attracted users with the promise of potentially breaking even and earning profits relatively quickly.

How DOX to Earn Differs:

The 'DOX to Earn' operating model within the Arkham Intel Exchange does not feature a secondary token for rewarding participants. Instead, all activities—transactions, fee payments, reward distributions, etc.—revolve solely around the native $ARKM token.

The Critical Factor: $ARKM Price Stability During Vesting

Rewards earned by bounty hunters or intelligence sellers are subject to a 15-day lock-up period after a task ('contract') is completed. Alternatively, earners can withdraw immediately by paying a 10% fee. Therefore, a crucial factor determining the model's potential for sustained development and user retention hinges on the price performance of $ARKM during this 15-day vesting window. For the model to incentivize users to stay engaged (and not immediately cash out at a loss), the $ARKM price needed to either remain relatively stable (specifically, not drop more than 10%, which would negate the benefit of waiting) or ideally appreciate during those 15 days.

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