Governance

To promote decentralized community governance for the network, AL would allow holders to propose and vote on governance proposals to determine future direction of the game, features, upgrades, and/or parameters of ArchLoot, or provide feedback, with voting weight calculated in proportion to the tokens staked.

The right to vote is restricted solely to voting on features of ArchLoot; it does not entitle AL holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, or select the board of directors or similar bodies of these entities, or determine the development direction of these entities, nor does AL constitute any equity interest in any of these entities or any collective investment scheme; the arrangement is not intended to be any form of joint venture or partnership.

It is the community members which would maintain and drive development of ArchLoot, so AL incentives would need to be distributed to promote enthusiasm for community governance, increase community activity, and compensate them for their time, expertise and effort. Only users who have participated in submission of proposals, commenting, reviewing and/or voting will be entitled to receive AL token governance rewards. For the avoidance of doubt, the community does not have legal control over any matters relating to the Company (or any of its affiliates) or any of its assets, or any of its affiliated companies (including without limitation the selection of governing board of the relevant company, over corporate matters, development direction, specific projects, or deployment of that company's assets, which shall be the final responsibility of the governing board of the relevant company).

Detailed Process

1. Proposal Submission

Community members can submit proposals on the ArchLoot official forum and engage in discussions based on community activity. In the initial phase, proposals will be submitted by administrators after the discussion period.

2. On-chain Execution

• Voting and Validation: Only users holding AL tokens are eligible to vote. The voting period lasts 3-14 days, and voting power is proportional to the number of holding AL tokens. A proposal must reach a minimum threshold of 1,000,000 power support to pass. After a proposal passes the community vote, it enters the on-chain execution phase, where it undergoes final validation on the blockchain to ensure transparency and fairness. Successful proposals are immutably recorded on-chain at vote.archloot.com, ensuring security and integrity in their execution.

• Execution Delay: Before proposals are executed, there is an execution delay period, which provides the community with time to review the results and verify the validity of the proposal. This safeguard ensures stable and transparent governance by allowing a buffer period for potential revisions or clarifications.

• Feedback Mechanism: During the execution phase, a feedback channel is available to allow community members to track the implementation of the proposal and suggest improvements where necessary.

3. Continuous Optimization

We will continuously adjust and optimize the governance process as the community grows, ensuring the project remains stable and aligned with the community's needs and objectives.