ACR · Arc Compute Rate
the reference rate for machine commercethe going rate for machine work, in plain words
plain editionlinkingconnecting·Fixing Rate-setting Nº 48

Every term this paper uses, in one line each, with the everyday analogy that makes it stick. No prior knowledge assumed.

The whole thing in six beats

The problem

Machines now buy AI work from machines with no trustworthy going rate, and a fake one is cheap to stage.

The estimate

ACR reads every payment on the Arc network, noisy and salted with fakes, and works out the honest rate: the big number above.

The print

Once an hour the rate is signed and posted to a public scoreboard on the blockchain, where contracts settle real money against it.

The money

Software pays a fraction of a cent per question, automatically: no accounts, no keys, the payment rides in the web request.

The bill for cheating

Fakes get filtered and extremes get ignored, and every rate ships with the literal dollar cost of bending it 0.01%. Cheating is priced.

The desk

Make a PIN-protected wallet, take 50 cents of our test money, place a real trade against our own bot, and take it back any time.

this paper
the fixing

the hour’s official price-setting: an old exchange word for publishing the day’s rate

print

one published rate: the number, its give-or-take range, and the bill for bending it

SOFR

the benchmark rate US loans settle on. ACR is the same idea, but for machine work

the press

our live server, which sets this paper’s type and naps between visits to save money

paper trail

which contract, which signer, which transaction a number came from: all checkable

money
USDC

a digital dollar: a coin built to always be worth exactly $1

nanopayment

a payment of a fraction of a cent: too small for card fees, easy for software

x402

a web turnstile: the server says “payment required”, the software drops a coin, the page opens

signed check

paying by handing over a signed authorization, like a check, instead of moving cash yourself

Gateway

Circle’s clearing house: it pools deposits and settles many tiny payments in batches

fees in dollars

this network charges its fees in the same dollars you already carry: no second token needed

dealer

the exchange booth that always quotes both a buy and a sell price, earning the small gap

weeks out

how far in the future a contract runs: week one, week two, and so on

cash-settled

no goods change hands at the end: the contract simply pays out the price difference in cash

the gap

how far a trade sits from the official rate: the market's opinion of where that rate is heading

the running price

the price everyone is settled up at right now: the score at half-time, not the final whistle

statistics
plain average (VWAP)

a size-weighted average: one staged $10M sale drags it wherever the faker wants

trimmed middle

Olympic scoring: throw out the wildest judges on both ends, keep the middle

wiggle room

the honest give-or-take range around an estimate: where the true number almost surely sits

basis point (bp)

one hundredth of one percent: a penny on a hundred dollars

the price at the time

the published rate a buyer could already see when it bought: the fair mark to judge a purchase against

like-for-like

strip quality differences first, so a studio and a penthouse compare fairly

un-blurring

undoing the smear that batching puts on timing, like sharpening a long-exposure photo

jumpiness

how much the price has been bouncing around, restated as a yearly figure

payment exhaust

the stream of real payments machines leave behind as they trade: our raw material

the bill for cheating

the literal dollars a cheat must burn to bend this rate, computed and published every hour

blockchain
on-chain

recorded on the blockchain, a public ledger nobody can quietly edit

oracle

the public scoreboard contract that other programs read and trust to settle money

the keeper

our unattended bot that keeps the market open: it trades a little each hour and starts the next contract when one ends

feed access

paying for data buys you a right recorded on the public ledger, not just a note in our own files

final in under a second

confirmed for good in under a second: the whistle blows, the goal counts, no replays

verifiable signature

a standard notarized form: data signed so anyone can check exactly who signed it

sworn record

a seller’s signed, public, on-chain statement of exactly what they sell

fake trade

selling your car to yourself to fake a hot market: volume with no real economics

sock-puppets

one troll wearing a hundred accounts that all look independent, until you trace the money

settlement-grade

trustworthy enough that contracts settle real money against it

courier

whoever posts a signed message on-chain: the signature is what counts, not the courier

The paper’s canonical glossary is docs/GLOSSARY.md. Flip the masthead to plain and every page gets this treatment, numbers identical.

Watch someone try to cheat it →Place a real trade →

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