Arkreen Activates the First Phase of the Onchain Energy Protocol Expansion on Arc

In September, Arkreen announced its plan to expand the Arkreen Onchain Energy Protocol to Arc, bringing renewable energy assets, settlement and protocol utility into Arc’s onchain economy.

Today, we are publishing the first onchain deployment update for that expansion.

Arkreen has completed three foundational steps:

• 100 million AKRE have been deposited into ArkreenLocker on Polygon as the reserve supporting the first phase of the Arc expansion.
• 100 million ARCE have been deployed on Arc and transferred to the Arkreen Foundation Safe.
• The first ARCE/USDC liquidity has been established through Uniswap v4 on Arc.

These steps create the initial economic infrastructure required for the Arkreen Onchain Energy Protocol to operate on Arc.

The protocol comes first

The Arc Expansion Plan begins with the Arkreen Onchain Energy Protocol.

Arkreen is expanding Onchain Energy Protocol to Arc so that renewable energy generation and environmental attributes can be issued, traded, settled and used as native onchain assets within the Arc ecosystem.

Operating the protocol on a new network also requires a network-native form of the Arkreen utility token. ARCE has therefore been deployed on Arc to support protocol fees, incentives and future participation in the Arkreen Onchain Energy Economy.

ARCE is infrastructure for the protocol expansion. Its purpose is connected to the issuance, transaction and use of renewable energy assets on Arc.

A supply-matched expansion

Arkreen has deposited 100,000,000 AKRE into the ArkreenLocker contract on Polygon.

This represents 1% of AKRE’s maximum supply.

Correspondingly, Arkreen has deployed 100,000,000 ARCE on Arc. The full amount was initially transferred to the Arkreen Treasury Safe:

• ARCE contract: 0x960C67B8526E6328b30Ed2c2fAeA0355BEB62A83
• Foundation Safe: 0xA997bF1f0678B63815fBabe573825170715eBecc

This establishes a transparent 1:1 supply relationship for the first phase:

100 million AKRE held in the Polygon reserve → maximum 100 million ARCE deployed on Arc

The AKRE held in ArkreenLocker has not been burned. It remains publicly verifiable on Polygon and is separated from active circulation under the Arc expansion reserve.

At launch, there is no permissionless bridge or automatic redemption mechanism between AKRE and ARCE. Any future migration or conversion mechanism will require a separately published framework, technical implementation and governance process.

Deployed supply is not circulating supply

Although 100 million ARCE have been deployed, this does not mean that all 100 million ARCE are entering market circulation.

The first Uniswap liquidity deployment uses up to:

• 15,000,000 ARCE
• Pool creation transaction: View on Arc Explorer
• Uniswap trading interface: ARCE/USDC on Uniswap

After the initial liquidity deployment, approximately 85 million ARCE remain in the Arkreen Foundation Safe.

Any later use or release of these tokens will require a separate onchain transaction and will be publicly disclosed.

Following the final liquidity and market-structure review, Arkreen chose a more gradual deployment than the preliminary plan described in the original Arc Expansion announcement. Rather than allocating 50 million ARCE to the first liquidity deployment, the initial allocation has been reduced to a maximum of 15 million ARCE.

This phased approach establishes the market infrastructure while allowing liquidity to expand in line with protocol adoption, market participation and the growth of energy assets on Arc.

ARCE utility and value capture

ARCE is the Arc-native utility token for the AREC Protocol.

As the protocol expands to Arc, ARCE is intended to be used for protocol fees associated with the issuance, transaction and use of renewable energy assets.

Under the planned fee model:

• 80% of ARCE collected as protocol fees will be burned.
• 20% will be allocated to the Arkreen Treasury to support protocol development, ecosystem operations and expansion.

USDC can serve as the settlement currency for energy transactions, while ARCE captures protocol-level utility.

This separates two functions clearly:

USDC provides stable value settlement. ARCE provides protocol access, fee utility and value capture.

The effectiveness of this model will ultimately depend on real protocol activity: renewable energy assets issued, energy transactions settled and machines or applications using the AREC infrastructure.

What comes next

The reserve, token and liquidity deployments establish the economic foundation for the Arkreen Onchain Energy Protocol on Arc. The next phase will focus on protocol activation and real usage.

Arkreen’s priorities include:

• Deploying and integrating Arkreen Onchain Energy Protocol functions on Arc.
• Enabling renewable energy assets to be issued and transacted in Arc’s onchain environment.
• Integrating ARCE into protocol-fee collection and burning.
• Supporting USDC-denominated settlement for energy transactions.
• Publishing reserve, Treasury, liquidity and burn data through transparent dashboards.
• Expanding liquidity as protocol activity and market demand develop.
• Defining the longer-term framework for the relationship between AKRE and ARCE.

Arc provides a settlement environment for programmable economic activity. Arkreen is bringing renewable energy assets and energy-focused protocol utility into that environment.

The first reserve has been established. ARCE is now deployed. The first liquidity is live.

The next milestone is to turn this infrastructure into renewable energy activity onchain.