Riddlen Tokenomics
Overview
The Riddlen ecosystem is powered by two complementary tokens that work together to create a merit-based economy for human intelligence validation:
- RDLN: The primary utility token with deflationary mechanics
- RON: Soul-bound reputation tokens for access control
RDLN Token Economics
Total Supply & Distribution
- Total Supply: 1,000,000,000 RDLN (1 billion tokens)
- Token Standard: ERC-20 with custom burn mechanics
- Decimals: 18
Allocation Structure
| Allocation | Amount | Percentage | Purpose |
|---|---|---|---|
| Riddle Prize Pool | 700,000,000 RDLN | 70% | Weekly riddle winner rewards |
| Treasury Reserve | 100,000,000 RDLN | 10% | Development & operations (1M/month) |
| Community Airdrop | 100,000,000 RDLN | 10% | Early adoption incentives |
| Liquidity Pool | 100,000,000 RDLN | 10% | DEX liquidity and market stability |
Grand Prize Pool System
In addition to the core allocations, Riddlen implements a Grand Prize accumulation system funded by transaction burns:
- 25% of all transaction burns → Grand Prize wallet accumulation
- Quarterly/Annual events → Massive prize pool distributions
- Multi-signature security → 4-of-5 signature requirement for Grand Prize vault
- Community excitement → Legendary riddles with unprecedented rewards
Deflationary Mechanisms
1. Progressive Burn Protocol
The Riddlen protocol implements a unique progressive burn system where costs increase with usage:
Failed Riddle Attempts:
- 1st attempt: 1 RDLN burned
- 2nd attempt: 2 RDLN burned
- 3rd attempt: 3 RDLN burned
- Nth attempt: N RDLN burned
Question Submissions:
- 1st question: 1 RDLN burned
- 2nd question: 2 RDLN burned
- Nth question: N RDLN burned
2. NFT Minting Burns
NFT minting follows the biennial halving schedule as specified in the whitepaper:
Biennial Halving Schedule:
Years 1-2: 1,000 RDLN per riddle attempt
Years 3-4: 500 RDLN per riddle attempt
Years 5-6: 250 RDLN per riddle attempt
Years 7-8: 125 RDLN per riddle attempt
Years 9-10: 62 RDLN per riddle attempt
Years 11-12: 31 RDLN per riddle attempt
Years 13-14: 15 RDLN per riddle attempt
Years 15-16: 7 RDLN per riddle attempt
Years 17-18: 3 RDLN per riddle attempt
Years 19-20: 1.5 RDLN per riddle attempt (final minimum)
Burn Distribution: All NFT minting costs follow the standard burn protocol (50% burned, 25% Grand Prize, 25% dev/ops)
3. Transaction Burn Distribution
All transaction burns follow a three-way split supporting ecosystem sustainability:
Burn Allocation (Per Transaction):
- 50% Permanently Burned → Removed from circulation (deflationary pressure)
- 25% Grand Prize Pool → Accumulates for legendary events
- 25% Dev/Ops Wallet → Long-term development and operations funding
Gasless Experience Design: The burn mechanism supports a gasless user experience by:
- Reducing total supply through permanent burns
- Building massive Grand Prize pools for community excitement
- Securing sustainable funding for platform development
- Creating economic value that offsets gas subsidization costs
Prize Pool Economics
Weekly Distribution Model
The 700M RDLN prize pool is distributed across 1000 weekly riddles over 20 years:
- Average Prize per Week: 700,000 RDLN
- Prize Range: Randomized between 100K - 2M RDLN per riddle
- Winner Slots: Variable (1-100 winners per riddle)
Difficulty-Based Rewards
| Difficulty | Typical Prize Range | Winner Slots |
|---|---|---|
| Easy | 100,000 - 300,000 RDLN | 50-100 winners |
| Medium | 300,000 - 700,000 RDLN | 20-50 winners |
| Hard | 700,000 - 1,500,000 RDLN | 5-20 winners |
| Legendary | 1,500,000 - 2,000,000 RDLN | 1-5 winners |
RON Reputation Economics
Soul-Bound Token Model
RON tokens are non-transferable and can only be earned through demonstrated intelligence:
- Cannot be bought, sold, or traded
- Permanently tied to earning wallet
- Represents proven problem-solving ability
- Anti-Sybil protection against wealth-based gaming
Access Tier System
| Tier | RON Range | Benefits | Earning Rate |
|---|---|---|---|
| Novice | 0-999 | Easy riddles only | 10-25 RON per riddle |
| Solver | 1,000-9,999 | Easy + Medium riddles | 50-100 RON per riddle |
| Expert | 10,000-99,999 | Easy + Medium + Hard | 200-500 RON per riddle |
| Oracle | 100,000+ | All riddles + Governance | 1,000+ RON per riddle |
RON Earning Mechanisms
Riddle Solving Rewards
Base Rewards by Difficulty:
- Easy: 10-25 RON (average: 17 RON)
- Medium: 50-100 RON (average: 75 RON)
- Hard: 200-500 RON (average: 350 RON)
- Legendary: 1,000-10,000 RON (average: 5,500 RON)
Performance Multipliers:
- First Solver: 5x base reward
- Speed Solver: 1.5x base reward
- Streak Bonus: +10% per consecutive correct answer (max 100%)
Oracle Validation Rewards
Higher tier users earn RDLN for validation services:
- Basic Validation: Base RDLN amount (Solver tier)
- Complex Validation: Base + 20% bonus (Expert tier)
- Elite Validation: Base + 50% bonus (Oracle tier)
Economic Sustainability Model
Burn Rate vs Prize Distribution
The progressive burn model creates natural economic pressure:
- Early Adopters: Low burn costs, high prize pools
- Mass Adoption: Increasing burn rates offset prize payouts
- Mature Economy: Burns exceed new token creation
Biennial Halving Events
Every 2 years, all burn costs are reduced by 50%:
- Maintains accessibility for new users
- Prevents excessive deflationary pressure
- Aligns with prize pool depletion schedule
Treasury Sustainability
The 100M RDLN treasury supports long-term development:
- Monthly Releases: Automated via TreasuryDrip contract
- Base Amount: 1M RDLN per month
- Dynamic Scaling: 1.0x to 5.0x multiplier based on needs
- Duration: ~8+ years of guaranteed funding
Token Velocity & Utility
RDLN Utility Matrix
| Use Case | Burn Amount | Frequency | Economic Impact |
|---|---|---|---|
| Riddle Attempts | Progressive (1-N) | High | Deflationary pressure |
| NFT Minting | Variable | Medium | Direct burn |
| Question Submission | Progressive (1-N) | Low | Quality control |
| Prize Payouts | Large pools | Weekly | Inflationary pressure |
RON Utility Matrix
| Use Case | RON Requirement | Benefit | Economic Value |
|---|---|---|---|
| Hard Riddles | 10,000+ | Higher prizes | RDLN earning access |
| Oracle Work | 1,000+ | RDLN income | Direct monetization |
| Governance | 100,000+ | Protocol control | Indirect value |
| Legendary Access | 100,000+ | Massive prizes | Exclusive opportunity |
Long-Term Economic Projections
20-Year Model (2025-2045)
Phase 1 (Years 1-5): Growth
- Prize pools attract participants
- Moderate burn rates
- Treasury funds development
Phase 2 (Years 6-10): Maturity
- Increasing burn pressure
- Established user tiers
- Self-sustaining ecosystem
Phase 3 (Years 11-15): Optimization
- Advanced difficulty algorithms
- Cross-chain expansion
- Mature governance
Phase 4 (Years 16-20): Sustainability
- Burns balance emissions
- Pure merit-based allocation
- Decentralized operations
Supply Curve Projection
| Year | Circulating Supply | Prize Pool Remaining | Avg Weekly Burns |
|---|---|---|---|
| 2025 | ~900M RDLN | 700M RDLN | 50K RDLN |
| 2030 | ~750M RDLN | 525M RDLN | 200K RDLN |
| 2035 | ~600M RDLN | 350M RDLN | 500K RDLN |
| 2040 | ~450M RDLN | 175M RDLN | 750K RDLN |
| 2045 | ~300M RDLN | 0 RDLN | 1M+ RDLN |
Risk Mitigation
Inflation Control
- Progressive burns increase with usage
- Prize pools are pre-allocated and finite
- Treasury releases are capped and automated
Deflation Control
- Biennial halving prevents excessive burn pressure
- New user incentives maintain participation
- Emergency treasury reserves available
Economic Attacks
- Soul-bound RON prevents Sybil attacks
- Progressive costs discourage spam
- Multi-signature controls protect treasury
Last Updated: September 28, 2025 Version: 1.0.0 Related Contracts: RDLN.sol, RON.sol, RiddleNFT_v2.sol