The ARCS project, launched in 2019 with the ARX token, has transitioned to its ARCS 2.0 phase, shifting from a data-focused model to one emphasizing real-world utility and data sovereignty. This evolution addresses previous challenges like the "cold start" issue and limited use cases by anchoring the token in verifiable economic activities.
A pivotal development is the July 2025 partnership with SSG Holdings and Sun Sun House, based in Tokyo, to integrate blockchain technology with traditional Japanese kominka homes. This collaboration reimagines these pre-WWII wooden structures as global investment and hospitality assets, with ARX serving as the exclusive settlement currency for property transactions, rentals, and loyalty rewards.
The project tackles Japan's vacant home crisis, aligning with the Ministry of Land, Infrastructure, Transport and Tourism's Vacant House Revitalization initiative and gaining support from the Japan Kominka Association. It capitalizes on Japan's booming tourism sector, where the vacation rental market expanded 145% year-over-year in 2023, valued at $1.91 billion USD, and connects to a broader $2.14 trillion property market.
ARCS 2.0 introduces a utility-first token model: users can pay for kominka stays with ARX to receive discounts, hosts earn ARX directly, and rewards are minted based on engagement like completed stays or data contributions. Token issuance is tied to on-chain and on-property activity, with staking options for tiered benefits and future governance through a phased DAO model. The project has listings on BitMart and ProBit, with plans for major exchange expansions, and has seen upward price trends for ARX since June 2025, reflecting market confidence.
Community efforts include a relaunched X account and campaigns like a 2,500 USDT airdrop and 2,000 USDT bounty to rebuild engagement. ARCS aims to expand into sectors like dining, mobility, and education, supported by national policies and stakeholder incentives.