RFR Tokenomics

The Refract Network's ecosystem is powered by the RFR token, which serves as the central incentive mechanism for all stakeholders to contribute and participate in the network. The RFR token is designed to provide liquidity and facilitate various activities within the Refract ecosystem.

RFR Token Utility

The RFR token has several key use cases within the Refract Network:

1. Transaction Fees: Users must pay transaction fees in RFR when transacting with Refract Framework Tokens (RFTs) in both primary and secondary markets. These fees help to maintain the security and stability of the network and incentivize node operators to process transactions.

2. Staking: Stakeholders can stake their RFR tokens with an Off-chain Service Endpoint (OSE) to earn yield and capture a portion of the transaction fee dividends. Staking helps to align the interests of stakeholders with the long-term success of the network and provides a passive income stream for token holders.

3. Governance: RFR token holders can participate in the decision-making process of the RefractDAO by voting on proposals related to the development, upgrades, and direction of the Refract Network. This decentralized governance model ensures that the network evolves in a manner that benefits all stakeholders.

Fee Models

The Refract Network implements a transaction fee model to incentivize network participants and ensure the sustainability of the ecosystem.

Transaction Fees

Every RFT transaction incurs a 5% transaction fee based on the transaction's value. This fee is divided into two parts:

1. Creator Fee (2.5%): This portion of the fee is allocated to the creator of the RFT, which is the OSE that signed the token. The creator fee serves as a reward for the OSE's contribution to the network and helps to incentivize the creation of valuable RFTs.

2. RefractDAO Fee (2.5%): The remaining portion of the transaction fee is collected by the RefractDAO. These funds are used to support the ongoing development, maintenance, and promotion of the Refract Network.

Staking Rewards

From the 2.5% creator fee, 0.5% is set aside for staking rewards. This portion is shared equally among all stakers of the respective OSE at the end of each staking epoch. Staking rewards provide an additional incentive for stakeholders to support and secure the network by staking their RFR tokens with trusted OSEs.

Token Distribution

The initial distribution of RFR tokens is designed to support the long-term growth and sustainability of the Refract Network.

Founding Team (30%)

A portion of the token supply is allocated to the founding team to incentivize their ongoing commitment to the project's success. These tokens are subject to a vesting schedule to ensure long-term alignment with the network's goals.

Fundraising and Early Development (20%)

A portion of the token supply is reserved for fundraising efforts and early project development. These funds will be used to support the initial growth of the network, including partnerships, marketing, and technical development.

RefractDAO Treasury (50%)

The majority of the token supply is allocated to the RefractDAO Treasury. These tokens will be used to fund ongoing development, grants, bounties, and other initiatives that benefit the Refract Network ecosystem. The RefractDAO will manage the treasury in a transparent and decentralized manner, with RFR token holders having a say in how the funds are allocated.

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The RFR token is the lifeblood of the Refract Network, providing the necessary incentives and liquidity for all stakeholders to contribute to the ecosystem's growth and success. Through carefully designed utility, fee models, and token distribution, the Refract Network aims to create a sustainable and thriving ecosystem that empowers developers, businesses, and users to unlock the full potential of decentralized applications and real-world interoperability.