Improving Yield Distribution & DAO Alliance Coefficient Calculations

Proposal Overview

To further improve ARK’s reward system and DAO alliance incentives—and to better align contributions with long-term participation—this proposal introduces two targeted updates to the current rules.

1）Remove the “Active Account” Requirement for Staking Rewards

• Current Rule: Only accounts with a total holding value of 100 USDT or more are eligible to receive staking rewards. * Proposed Update: All staking accounts, including those below 100 USDT, will be eligible to earn staking rewards. The active account requirement will remain unchanged for DAO alliance rewards. * Why This Matters:  * Lower the entry barrier for new users * Allow more holders to benefit from protocol growth * Expand staking participation without weakening alliance incentive standards

2）Include Compounded Rewards in DAO Alliance Coefficient Calculations

• Current Rule: DAO alliance coefficients are calculated based only on the original staked principal, excluding compounded (reinvested) rewards. * Proposed Update: Compounded rewards will be counted as part of contribution performance and included in DAO alliance coefficient upgrades.

• Why This Matters:  * Reflect real, long-term contribution more accurately * Encourage compounding and reinvestment behavior * Better align incentives with the (3,3) long-term cooperation model

Proposal Goals

• Lower participation friction and grow the active community * Reward long-term commitment and compounding behavior * Ensure incentives are fair, transparent, and contribution-based

Implementation Timeline

• Once approved, the changes will go live after the system update is completed (exact timing will be announced separately) * The new rules will be updated on the DApp frontend at the same time * All reward and coefficient calculations will be applied immediately under the new logic