RNT Minting and Distribution System

RNT Minting and Distribution System

Key Points

  • Rint Network is providing transparency to the community on the RNT Minting and Distribution System, including an accompanying RNT Minting and Distribution Worksheet as a resource. (download)
  • Rint Network splits the node rewards on each blockchain. The split can range as high as 100% of node rewards reserved for RNT minting and distribution to the community.
  • Every day, the relationship between node rewards earned, and amount of RNT distributed, favors an increase in the total redeem value of RNT.
  • A minimum of 10% of the daily eligible node rewards on all chains is used to increase the total redeem value of all RNT in existence.
  • The redeem value increases at a faster rate as Rint Network earns more node rewards from increased community staking or additional RNT nodes
  • The distribution process is designed to allow Rint Network to scale the RNT rewards economy to many blockchains in an efficient manner.
  • RNT is a rewards token which is redeemable for a diverse collection of tokens earned from Rint Network’s nodes rewards on different blockchains. RNT can be redeemed at any time using TronLink, Rint Network’s staking wallet.
  • Rint Network distributes RNT daily on multiple blockchains. One of Rint Network’s guiding principles is striving to increase the total redeem value of RNT over time, thus providing better rewards to the community.

The benefits of earning and holding RNT

  • RNT automatically stakes and maximizes rewards
  • Automatic daily compounding
  • Earn rewards from multiple blockchains
  • RNT has a redeem value
  • RNT’s total redeem value increases over time
  • RNT Rewards Bonus
  • A limited number of RNT are minted per day
  • Market value tends to be higher than redeem value

The RNT Minting and Distribution System is Designed to Scale for Many Blockchains

In mid-2021, RNT became a multi-chain rewards token. As announced at that time, the RNT Minting and Distribution System changed to include the flexibility needed to successfully add more blockchains to the RNT rewards economy.

Various blockchains have differing node rewards structures, and those reward structures can change as the blockchains evolve. The RNT Minting and Distribution System is designed to be flexible enough to adapt to these differing node rewards structures, or adapt as existing structures change. Rint Network aims to create custom rewards structures to preserve the ability to provide competitive rewards on new and existing represented blockchains, while favoring growth in the redeem value of all RNT over time. Rint Network is now making the process more transparent with the community.

  • Rint Network’s current plan is to expand the RNT rewards economy to include more than 40 blockchains. As Rint Network continues to innovate, The RNT Minting and Distribution System, as well as Rint Network’s expansion plan may accelerate, grow or adapt as opportunities that will benefit RNT holders are discovered.

Five Steps for Minting and Distributing RNT

While there are many calculations that must be done in order to get the exact RNT distribution for any given day, the process can be broken down into 5 basic steps. The full calculations can be evaluated in-depth using the RNT Minting and Distribution Worksheet. (download worksheet)

1. Native Token Split (Line 1.1.6 in worksheet)

Rewards from RNT nodes on each chain are split into two portions — one for Rint Network Operating Expenses (also known as Opex, which is not to be included in the minting process), and the other portion to be included in the RNT minting process (known as the minting portion). Only the RNT minting portion of node rewards is utilized in the distribution process outlined below to determine the number of RNT to be minted each day.

The Native Token Split is completely customizable in how it is applied to each blockchain. As examples, it could be a percentage (0% to 100%) of the total node rewards. Alternatively, Rint Network could limit the Opex portion to a specific number of tokens rather than a percentage, with everything above that amount used for minting RNT.

One reason for having this split is that it could be utilized to reduce Rint Network’s share of the RNT tokens minted on that blockchain (see Step 4 — Blockchain RNT Split), providing more RNT to community stakers. It could also be used to ensure rewards stay competitive on all blockchains as additional nodes are added.

2. Rint Network Subsidy (Line 1.2.9 in worksheet)

In this step, Rint Network can choose to increase rewards to the community by providing funds from Opex to the minting portions of various blockchains.

One use of this step would be to allow Rint Network to provide a higher promotional reward on specific blockchains, which would encourage more staking on those chains. Increased staking for Rint Network on any blockchain benefits all RNT holders by increasing the redeem value at a faster rate.

3. RNT Minting (Section 3.4 in worksheet)

On most blockchains, there are no pre-minted RNT.

Each day, the amount of RNT minted for daily rewards will be determined by the equivalent USD value of the combined minting portion of node rewards from all represented blockchains. The exact formulas for minting and a detailed breakdown of the calculations are provided in the accompanying RNT Minting and Distribution System Worksheet (see below).

The formula for how much RNT is minted daily is:

RNT Minted ≤ ($Node Rewards / $Redeem Value) * 90%

The amount of new RNT minted per day cannot exceed 100,000.

The notations $Node Rewards and $Redeem Value refer respectively to the USD value of the combined minting portions earned by Rint Network and the USD value of all the native tokens in the redeem value of RNT.

This ensures a minimum of 10% of eligible node rewards each day are used to increase the total redeem value of all RNT in existence. As node rewards rise from more community staking on an increased number of blockchains, this percentage can be even higher.

4. Blockchain RNT Split (Line 1.1.7 in worksheet)

Each blockchain receives a share of the daily minted RNT in proportion to that chain’s contribution to the day’s USD value of total eligible node rewards.

From the amount dedicated to each blockchain, the community receives a percentage of that RNT. This percentage can vary for each blockchain, but can be as high as 100% of the RNT distributed to that particular blockchain being allocated for the community.

5. RNT Distribution (Section 3.5 in worksheet)

  • RNT distributed to the community on each blockchain is shared by native token stakers and RNT holders on that blockchain, in proportion to their stake and amount of RNT held.
  • Rint Network has created a step-by-step RNT Minting and Distribution Worksheet (download) to help those who wish to dig deeper into the process.

The RNT Distribution System Promotes the Total Redeem Value Increasing Over Time

It is important to note that the minting and distribution system is designed with the total redeem value of RNT in mind. The redeem value is defined by the total number of blockchain native tokens for which a RNT can be redeemed. This value is determined for each native token by dividing the total number of those tokens held in Rint Network redeem accounts by the circulating supply of RNT. As long as enough node rewards from a specific blockchain are added to those redeem accounts to compensate for the increasing circulating supply of RNT as a result of daily minting, the redeem value of that native token will either stay the same or increase.

Focusing on the redeem value of just one particular blockchain, however, would hinder Rint Network in its goal of providing the best rewards to its community.

So while the number of native tokens in the redeem value for a specific blockchain may rise or fall, that is offset by a change in the redeem value for another blockchain. Every day, the relationship between total node rewards earned from all blockchains and amount of RNT distributed favors an increase in the total redeem value. (The USD value of these rewards is ultimately influenced by external market price fluctuations.)

The RNT Minting and Distribution System will allow Rint Network to incorporate additional blockchains into the rewards economy in a balanced manner. This customizable system based on daily contribution of node rewards from across all blockchains is scalable, and favors an increase in the total redeem value of RNT over time.

Disclaimer: This article should not be interpreted as investment advice or a guarantee of any return. Rint Network is an innovator in the blockchain staking space. Blockchain technology, blockchain networks, cryptocurrencies, and other related technologies continue to evolve over time. Rint Network reserves the right to adapt any policy, business practice, or rewards structure in the future to address changing conditions. Notice of any change of this type will be given to the community by distribution on Rint Network’s standard communications channels.

Learn more about Rint Network on our website. Connect with us on Telegram, Twitter, Reddit, Facebook, Instagram, LinkedIn, YouTube, and Medium.

Connect with TronLink on Twitter.

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Rint Network is free and open-source project for enabling anonymous, encryption & communication by directing Internet traffic through a worldwide.

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Rint Network

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