Circle releases Arc white paper: launches' economic operating system 'Layer1, ARC as native coordinating asset Odaily Planet Daily News Circle released the latest white paper ARC: The Native Asset of the Economic OS, officially proposing the public Layer1 blockchain named "Arc", which is positioned as the Internet "Economic OS", aiming to unify and stabilize the currency, token based assets and the underlying infrastructure of the global chain market. Arc will provide deterministic settlement, stablecoin based gas fees, configurable privacy, and institutional level validator mechanisms, and form a complete technology stack through USDC cross chain, payment network, and development tools. Officially disclosed, Arc testnet has processed over 244 million transactions since its launch in October 2025, and the mainnet is scheduled to be launched in the summer of 2026. The white paper focuses on introducing the native token ARC, which is defined as a network "coordinated asset" that undertakes functions such as staking, governance, fee allocation, and ecological incentives. ARC will participate in network security through a pledge mechanism and drive a long-term supply and demand model through a fee conversion+destruction mechanism. In terms of economic design, the initial total quantity of ARC is 10 billion pieces, adopting a model of gradually decreasing inflation rate from 2% to 3%, and planning to achieve a deflationary equilibrium of "cost destruction offsetting issuance" in the long run. All on chain transaction fees will be uniformly converted into ARC, distributed between validators and pledgers, and partially destroyed. At the governance level, ARC holders will participate in voting on key economic parameters (fees, inflation, destruction mechanisms, etc.), while Circle retains control over protocol development and compliance execution in the early stages, gradually transitioning towards decentralized governance. Circle emphasizes that the core goal of Arc is to establish a "programmable global economic layer" that enables stablecoins, financial protocols, and on chain applications to operate collaboratively in the same settlement environment, with ARC serving as the coordination and incentive core of the system.