The Ark case for CTV

The "statechain model" utilized in the arkoor system is a concept that ensures a VTXO (Virtual Transaction Output) cannot be double-spent as long as the server does not collude with any previous owner of the VTXO since its creation. This model introduces a reduced trust requirement by allowing users to refresh their VTXO during a round, thereby exiting the reduced trust model and restoring it to a trustless state. A VTXO directly resulting from a round is inherently trustless and does not carry the reduced trust assumption.

In scenarios where users may feel uneasy about holding an arkoor VTXO under this model, the system provides an option to submit VTXOs for refresh immediately after acquisition. This process, however, involves a liquidity fee proportional to the time remaining until the VTXO expires. Consequently, refreshing a VTXO shortly after receiving it incurs a higher fee than if the holder waits until the VTXO is nearing expiry. This fee structure encourages users to hold onto their arkoor VTXOs longer, reducing the frequency of refreshes and potentially enhancing the system's overall liquidity management.