ARCS 2.0: Pioneering Data Sovereignty Through Real-World Utility and Cultural Heritage

**PRESS RELEASE**
*Tokyo, Japan – October 31, 2025*

### ARCS (ARX) Project Advances to ARCS 2.0, Bridging Blockchain with Traditional Japanese Real Estate

In a landmark evolution, the ARCS (ARX) project has transitioned from visionary foundations to tangible, real-world impact. Launched in 2019 with a bold mission to empower data sovereignty—enabling individuals to control and monetize their personal data and gain fair economic value from it—ARCS has now entered its ARCS 2.0 phase.

This strategic pivot integrates blockchain technology with physical assets, forging a decentralized economic ecosystem that bridges digital innovation and everyday utility. Recent milestones affirm the team’s unwavering trajectory toward a sustainable, user-centric future.

### From Vision to Reality: Lessons from ARCS 1.0

ARCS 1.0 introduced a groundbreaking “data bank” model, rewarding users with ARX tokens for anonymous data contributions. While pioneering, it faced challenges such as the “cold start” dilemma of simultaneous user and enterprise adoption, limited real-world use cases, and regulatory uncertainties.

These insights crystallized a core truth: true value demands practical application. ARCS 2.0 responds decisively by anchoring the token in high-frequency, verifiable economic activity.

### Strategic Partnership: Revitalizing Kominka Homes with Blockchain

At the forefront of ARCS 2.0 is a transformative partnership formed in July 2025 with SSG Holdings Co., Ltd. and its subsidiary Sun Sun House Co., Ltd., both based in Tokyo. This collaboration integrates Japan’s traditional *kominka* homes with blockchain technology, marking a new phase for ARCS that bridges traditional real estate and blockchain utility.

The partnership aims to create an ecosystem where ARCS tokens (ARX) are used for property transactions, rentals, and loyalty rewards, thus delivering real-world utility to the token.

– **Acquisition to Management:** Sun Sun House manages end-to-end operations, including sourcing, restoring, selling, and renting these culturally significant homes.
– **Blockchain Integration:** Investors can purchase properties using ARX; unused homes transform into vacation rentals, blending tradition with token rewards.
– **Broader Impact:** This initiative addresses Japan’s vacant home crisis, aligning with the Ministry of Land, Infrastructure, Transport and Tourism’s (MLIT) Vacant House Revitalization initiative and receiving support from the Japan Kominka Association.

Kominka homes, known for their rustic authenticity, natural harmony, and immersive experiences, perfectly tap into booming tourism trends. Post-pandemic, Japan’s inbound travel market has surged, with the vacation rental segment expanding 145% year-over-year in 2023 (Japan Tourism Agency). Valued at $1.91 billion USD, this market favors privacy and locality, positioning ARCS as a vital bridge to Japan’s $2.14 trillion property market.

### A Utility-First Token Model

ARCS 2.0 transforms ARX into a token designed for active use, circulation, and seamless real-world integration. Every function is tied to verifiable transactions within the ecosystem, ensuring that value is created, spent, and rewarded in a self-sustaining loop.

– **Payments and Rentals:** Guests booking *kominka* vacation homes via SSG properties can pay with ARX to unlock exclusive discounts. Hosts receive ARX directly, enabling reinvestment into ecosystem services or staking.
– **Rewards System:** ARX tokens are minted and distributed based on user engagement—completed stays, participation in local experiences, and voluntary, anonymized data contributions during travel. Token issuance is triggered only by measurable on-chain and on-property activities.
– **Membership and Staking:** Token holders gain access to real estate-backed membership rights activating ARX rewards. Staking provides tiered benefits such as priority access to new properties, enhanced discounts, and future governance rights.
– **Data Bank Synergy:** Travel-related user data (shared with consent) enriches the ARCS data bank. Partners access anonymized insights using ARX tokens, driving demand while rewarding contributors.

Minting authority remains exclusively with the ARCS team, who execute supply control transparently and responsibly. All new ARX tokens enter circulation solely through ecosystem activities like lodging, memberships, and data interactions—never through speculative or unanchored distributions.

### Powering a Dual Flywheel Ecosystem

**1. Real World Asset (RWA) Ecosystem:**
Lodging and hospitality services drive ARX spending, with users rewarded for their engagement and value creation.

**2. Data Ecosystem:**
User activity enriches the data bank, unlocking further value and demand within the ecosystem.

Web3 technology enhances the real estate sector by introducing immutable transparency, democratizing global access, and streamlining transactions.

### Building Decentralization: Governance and Expansion

Key initiatives underway include:

– **Decentralized Governance:** ARCS 2.0 plans a phased transition to a DAO (Decentralized Autonomous Organization) model, enabling token holders to participate in project decision-making processes.
– **Exchange Growth:** ARX is listed on BitMart and ProBit exchanges, with plans for listings on major platforms to enhance liquidity.
– **Sector Expansion:** Building beyond tourism into dining, mobility, education, and more.
– **Community Momentum:** After overcoming initial hurdles, ARCS relaunched its official X account (formerly Twitter) and initiated a 2,500 USDT Airdrop & 2,000 USDT Bounty campaign to rebuild community engagement and expand the ecosystem.

These efforts have rapidly revitalized user activity, with ARX token value trending upward since June 2025—highlighting strong market confidence in this utility-driven model.

### On Track to a Decentralized Future

ARCS 2.0 is steadily advancing toward its vision of a decentralized economic ecosystem focused on real-world assets, secure data banks, and sustainable growth. By fusing Japanese heritage with blockchain technology through its partnership with SSG Holdings, the project delivers a functional token that circulates value across physical and digital realms.

With strong support from national policies, favorable market trends, and aligned stakeholder incentives, ARCS is poised to achieve its vision of a decentralized and sustainable economic future.

### About ARCS

The ARCS project is dedicated to empowering individuals through data sovereignty—where users control their own data as a sacred asset and rightfully enjoy its value. Central to ARCS 2.0 is the fusion of a Real World Asset (RWA) ecosystem with a secure data bank, forming a robust platform prioritizing user control and benefits.

At ARCS, data sovereignty means individuals have the right to control and benefit from their data. The ARCS platform empowers users by providing practical value through its native token, ARX. This token facilitates discounted payments at accommodations and rewards users for service usage, driving engagement and growth.

By transforming real-world economic activity into a self-reinforcing growth cycle (“flywheel”), ARCS creates a dynamic environment where users can thrive. Through innovation and user-centric design, ARCS is revolutionizing data management and valuation—building a platform that fosters a community driven by data sovereignty and economic opportunity.

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*For media inquiries, please contact the ARCS communications team.*
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