About DMF

Pioneering the next generation of stable digital assets that combine institutional-grade stability with decentralized growth mechanisms on Arc.

What is DMF?

Digital Monetary Framework (DMF) is a decentralized financial infrastructure layer built on Arc that issues DMF tokens—next-generation stable digital assets backed 100% by Circle stablecoins. Unlike traditional stablecoins that maintain a static 1:1 peg, DMF tokens introduce a revolutionary forced-growth mechanism where transaction fees generate dividends automatically distributed to token holders.

Launched in late 2025, DMF pioneered the forced-growth stablecoin model, combining the stability and trust of established reserve-backed assets with innovative blockchain-native yield generation. Our two flagship tokens—dmfUSD (backed by USDC) and dmfEUR (backed by EURC)—represent a new category of financial instruments that offer both capital preservation and organic value appreciation.

Every DMF token is 100% backed by its respective Circle stablecoin reserve, ensuring full transparency and redeemability. The protocol operates entirely on-chain with smart contracts, eliminating the need for intermediaries while maintaining the security and reliability of institutional-grade backing assets.

The Idea and Market Need for DMF tokens

The Problem We Solve

The decentralized finance (DeFi) ecosystem has experienced explosive growth, yet it faces fundamental challenges that limit mainstream adoption and utility:

  • Volatility: Most cryptocurrencies experience extreme price volatility, making them unsuitable for everyday transactions, savings, or as a store of value.
  • Stagnant Stablecoins: Traditional stablecoins maintain a fixed 1:1 peg but offer no growth potential, essentially functioning as digital cash that loses value to inflation over time.
  • Lack of Yield: Holding stablecoins provides no returns, forcing users to engage in complex DeFi strategies or accept counterparty risk to earn yield.
  • Trust Requirements: Many yield-generating protocols require trusting centralized entities or complex smart contracts with significant risk exposure.

The DMF Token Solution

DMF tokens address these market needs by combining the best aspects of traditional stablecoins with innovative blockchain-native mechanisms:

Stability

Each DMF token is 100% backed by Circle stablecoins, ensuring price stability and full redeemability at any time. You maintain the security of established reserve-backed assets.

Forced Growth

Transaction fees (0.25% on all operations) generate dividends automatically distributed to holders. Your position grows organically through protocol activity, not speculation.

Transparency

All reserves, circulation, and operations are fully transparent and verifiable on-chain. No hidden mechanisms or opaque processes.

Non-Custodial

You maintain full control of your assets. No intermediaries, no custodial risk, no permission required. True decentralized ownership.

Market Opportunity

The stablecoin market has grown to over $150 billion, with Circle's USDC alone representing more than $100 billion in market capitalization. However, this massive market remains largely static—users hold stablecoins for stability but receive no returns. DMF tokens unlock this dormant value by creating a sustainable, transparent mechanism for value appreciation while maintaining the stability users demand.

For businesses, DMF tokens offer a superior alternative to traditional stablecoins for treasury management, providing both capital preservation and organic growth. For individuals, they represent a new category of digital savings instruments that combine the safety of bank deposits with the transparency and accessibility of blockchain technology.

Why We Chose Circle Products for Backing

Circle's Dominance and Impact on Arc

Circle has become the cornerstone of the Arc DeFi ecosystem, with USDC serving as the primary liquidity layer for decentralized exchanges, lending protocols, and trading pairs. As of 2025, Circle stablecoins represent the largest and most liquid stablecoin ecosystem in cryptocurrency, with over $100 billion in USDC alone and significant market share for EURC.

Circle's impact on Arc cannot be overstated. USDC is the most traded cryptocurrency by volume, serving as the primary on-ramp and off-ramp for DeFi protocols. It provides the liquidity backbone for decentralized exchanges, enables efficient price discovery, and serves as a trusted settlement layer for billions of dollars in daily transactions.

Why Circle for DMF tokens

Market Leadership

Circle commands over 70% of the stablecoin market share, providing unmatched liquidity and market acceptance. This ensures DMF tokens have access to the deepest, most liquid backing reserves available.

Transparency

Circle publishes daily reserve attestations and quarterly reserve reports, providing unprecedented transparency for a stablecoin issuer. This aligns with DMF's commitment to transparency and verifiability.

Ecosystem Integration

Circle tokens are natively integrated into every major DeFi protocol, exchange, and wallet. This ensures DMF tokens can seamlessly interact with the entire Arc ecosystem.

Proven Track Record

Circle has maintained its peg through multiple market cycles, regulatory challenges, and market stress events. This proven resilience provides confidence in the backing assets.

Multi-Asset Coverage

Circle offers USDC (USD) and EURC, enabling DMF to provide diversified DMF tokens covering major fiat currencies.

ARC Native

Circle tokens are ERC20 tokens native to Arc, ensuring seamless integration with DMF token smart contracts and eliminating cross-chain complexity or bridge risks.

Important Note: DMF is not affiliated with, endorsed by, or in partnership with Circle Operations Limited. We use Circle stablecoins as backing assets because they represent the most liquid, transparent, and widely accepted stablecoin ecosystem available. For information about Circle's reserves and transparency, please visit Circle's Transparency page.

Why Arc: Built for a Native Layer 1

Arc's Purpose-Built Features

Arc is an open Layer 1 blockchain purpose-built to unite programmable money and onchain innovation with real-world economic activity. As described on arc.network, Arc combines the efficiencies of blockchain with traditional finance must-haves to power onchain lending, capital markets, FX, and payments. DMF is built to leverage these foundational features:

Stablecoins as Native Gas

Arc's gas fees are low, predictable, and fiat-based, starting with USDC. This enables seamless, cost-effective transactions whether you're sending $1 or $1B, eliminating the volatility concerns associated with native token gas fees.

Deterministic Sub-Second Finality

Arc delivers instant settlement finality to serve the most demanding enterprise use cases, powered by Malachite, a highly performant BFT consensus engine. This ensures DMF token transactions settle immediately with certainty.

Global Liquidity Hub

Arc is designed to aggregate stablecoin and tokenized asset liquidity, making it composable for capital formation and value exchange across the multichain ecosystem through CCTP and Gateway integration.

EVM-Compatible Architecture

Arc's EVM-compatible network ensures DMF tokens can integrate seamlessly with the entire DeFi ecosystem—DEXs, lending protocols, yield aggregators, and more. This interoperability maximizes utility and liquidity while maintaining familiar development patterns.

Why Arc for DMF

Native USDC Integration: Arc uses USDC as its native token, creating seamless integration with DMF tokens backed by Circle stablecoins. This native compatibility eliminates bridge risks and provides direct access to the most liquid stablecoin ecosystem.

Layer 1 Architecture: As a native Layer 1 blockchain, Arc provides a clean, purpose-built foundation for DeFi protocols. This architecture ensures optimal performance, security, and composability for financial applications like DMF tokens.

Growing Ecosystem: Arc is building a vibrant DeFi ecosystem with increasing adoption. Building on Arc ensures DMF tokens can leverage emerging infrastructure, liquidity pools, and a growing user base.

Developer-Friendly: Arc's EVM-compatible architecture provides familiar development tools and patterns, enabling rapid development while maintaining security best practices.

Future-Focused: Arc's commitment to scalability, security, and decentralization aligns with DMF's long-term vision of providing stable, transparent, and growth-oriented digital assets.

"Building systems where correctness and fairness depend on mathematics and consensus, not on the goodwill of third parties. This is the essence of trustlessness—the foundation of decentralized systems."

DMF embodies this principle. Every DMF token operation, from buying and refunding to dividend distribution, is executed through immutable smart contracts. Users can verify all operations independently, ensuring trust is placed in code and mathematics, not in promises or intermediaries.

Our Commitment

Security First

Comprehensive Foundry Forge testing, OpenZeppelin security libraries, and transparent audit processes.

Full Transparency

All reserves, circulation, and operations are publicly verifiable on-chain. No hidden mechanisms.

User Empowerment

Non-custodial design ensures users maintain full control of their assets at all times.