Economic Engine

Staking Mechanism

The staking mechanism in the Reddio ecosystem is designed to incentivize long-term commitment, decentralize network operations, and align economic rewards with platform participation. This staking model supports the network’s Proof-of-Authority (PoA) consensus, wherein validators must stake RDO to participate in block production.

Importantly, the mining reward pool used in this mechanism—2.5 billion RDO over 10 years—has already been allocated under the Reddio tokenomics structure. This ensures transparency and predictability for all staking participants.

Revenue Streams

Reddio's economic model is designed to ensure long-term sustainability by diversifying and optimizing its revenue streams. These streams not only support platform operations and protocol development but also provide the basis for staking rewards, validator incentives, and token burns. The following are the primary sources of revenue within the Reddio ecosystem:

Transaction Fees

Transaction fees are the most direct and consistent source of revenue. All users interacting with Reddio—whether transferring assets, executing smart contracts, or accessing AI-powered applications—are required to pay gas fees in $RDO. These fees are:

• Used to fund staking rewards distributed among participants.
• Subject to the burn mechanism, with up to 20% of each transaction fee permanently removed from circulation.

As transaction volume increases, so too does this revenue stream, making it a scalable source tied directly to network growth.

Conclusion

The RDO token economy has been engineered to support Reddio’s vision as a high-performance, decentralized Layer 2 solution purpose-built for AI, DeFi, and gaming. Through carefully structured utility, incentives, and token flows, RDO binds together validators, developers, and users into a participatory and value-generating network.

Staking mechanisms empower users to contribute to network security while earning a share of transaction fee. The Proof-of-Authority model enforces accountability and ensures low-latency finality through validator staking. Meanwhile, token-based governance gives the community control over critical aspects of the protocol, including upgrades and modular SDK evolution.

The integrated burn mechanism, drawing from transaction fees, introduces a deflationary pressure that enhances long-term token value. Ultimately, the RDO token is not just a medium of exchange but a foundational asset that powers, secures, and governs the Reddio ecosystem. With scalability, decentralization, and economic alignment at its core, Reddio is positioned to become the execution layer of choice for the next generation of web3 applications.