[PRESS RELEASE – Tokyo, Japan, October 31st, 2025]

In a significant development, the ARCS (ARX) initiative has progressed from conceptual visions to practical applications. Established in 2019, the project aimed to empower individuals by enabling them to control and monetize their personal data, which has now transitioned into ARCS 2.0. This new phase merges blockchain technology with physical assets, establishing a decentralized economic system that connects digital advancements to real-world utility. Recent achievements underscore the team’s steadfast commitment to a sustainable, user-focused future.

From Vision to Reality: Insights from ARCS 1.0

ARCS 1.0 introduced a pioneering “data bank” model, rewarding contributions of anonymous data with ARX tokens. Despite its groundbreaking nature, the project faced challenges, including simultaneous user and enterprise adoption, limited real-world applications, and regulatory concerns. These experiences revealed that true value requires practical implementation. ARCS 2.0 directly addresses these challenges, tying the token to high-frequency, verifiable economic activities.

Strategic Partnership: Revitalizing Kominka with Blockchain

A pivotal development in ARCS 2.0 is a transformative partnership formed in July 2025 with SSG Holdings Co., Ltd. and its subsidiary Sun Sun House. Based in Tokyo, this collaboration aims to merge traditional Japanese kominka homes with blockchain technology, initiating a new era for ARCS by connecting traditional real estate to blockchain functionalities. The partnership’s goal is to establish an ecosystem where ARCS tokens facilitate property transactions, rentals, and loyalty rewards, thereby enhancing the token’s utility.

This initiative reimagines kominka, Japan’s historic wooden homes from before WWII, positioning them as investment and hospitality assets, with ARX designated as the exclusive settlement currency.

• From Acquisition to Management: Sun Sun House will oversee all operations including sourcing, restoration, sale, and rental of these cultural landmarks.
• Blockchain Integration: Properties can be purchased with ARX tokens, and unoccupied homes may serve as vacation rentals, integrating tradition and token rewards.
• Wider Impact: The project contributes to Japan’s initiative to rejuvenate vacant homes, in cooperation with the Ministry of Land, Infrastructure, Transport and Tourism’s (MLIT) Vacant House Revitalization program and the support of the Japan Kominka Association.

Kominka, with its rustic charm and harmony with nature, aligns well with the rebounding tourism trends, especially as Japan’s inbound travel has increased significantly post-pandemic. The vacation rental sector soared by 145% year-on-year in 2023 (according to the Japan Tourism Agency), representing a $1.91 billion USD market that values privacy and locality. This positions ARCS as a connector to a $2.14 trillion property market.

A Utility-Driven Token Model

ARCS 2.0 reshapes ARX into a token designed for active engagement, circulation, and real-world relevance. Every function within the ecosystem correlates with verifiable transactions, ensuring that value is created, spent, and rewarded sustainably.

• Payments and Rentals: Visitors booking stays in kominka through SSG properties can utilize ARX for exclusive discounts. Hosts receive ARX directly, facilitating reinvestment into ecosystem services or staking.
• Rewards System: ARX is minted and allocated based on user activity—completion of stays, participation in local events, and voluntary anonymous data sharing during visits. Token issuance occurs solely through quantifiable on-chain and on-property actions.
• Membership and Staking: Real estate-backed membership rights unlock ARX rewards. Token holders can stake to earn tiered benefits including early access to property listings, improved discounts, and future governance roles.
• Data Bank Synergy: Consent-based travel-related user data enhances the ARCS data bank. Partners can access this anonymized data, increasing demand while rewarded contributors with additional tokens.

The ARCS team retains minting authority, carried out transparently with controlled supply. New ARX enters circulation only through active participation within the ecosystem, excluding speculative distributions.

This model fosters a dual cycle:

1. RWA Ecosystem: Hospitality drives ARX usage, rewarding participants for their contributions.
2. Data Ecosystem: User activities enhance the data bank, unlocking further value.

Web3 technology enhances real estate through immutable transparency, democratizing global access and simplifying transactions.

Fostering Decentralization: Governance and Growth

Key initiatives include:

• Decentralized Governance: ARCS 2.0 seeks to implement decentralized governance through a phased DAO model, involving token holders in project decisions.
• Exchange Expansion: Listings on BitMart and ProBit are in progress to boost liquidity on major platforms.
• Sector Growth: Expansion plans encompass tourism, dining, mobility, and education.
• Community Engagement: After tackling previous difficulties, ARCS has revived its official X account and launched campaigns, including a 2,500 USDT airdrop and 2,000 USDT bounty, to rebuild its community and grow the ecosystem. The renewed social media presence and campaigns have significantly improved engagement.

Market response indicates confidence; ARX’s value has been on the rise since June 2025, reflecting trust in this utility-oriented model.

Advancing Towards a Decentralized Future

ARCS 2.0 is consistently progressing towards its objective of developing a decentralized economic ecosystem, emphasizing real-world assets, data banks, and sustainable growth. By integrating Japanese cultural heritage with blockchain technology, in partnership with SSG Holdings, ARCS delivers a functional token that manages value in both physical and digital dimensions. Backed by national policy, favorable market conditions, and stakeholder incentives, ARCS is poised to realize its vision of a decentralized and sustainable economic future.

About ARCS

The ARCS project strives to empower individuals by establishing data sovereignty, where users exercise control over their data as an invaluable asset and fairly benefit from it. The core of ARCS 2.0 combines a Real World Asset (RWA) ecosystem with a secure data bank, constructing a platform that prioritizes user empowerment and advantages.

ARCS is committed to data sovereignty, enabling users to manage and profit from their data. The ARX token serves as a medium for discounted transactions in accommodation services and rewards for utilizing services, providing tangible benefits to users while nurturing engagement and growth. By converting real-world economic activities into a cyclical growth model, ARCS creates an environment where users can flourish.

Through its innovative strategies, ARCS is positioned to transform data management and valuation fundamentally. By centering user needs and offering meaningful rewards, ARCS builds a platform that champions data sovereignty and economic opportunity.