Prodds Product Explainer
  • Welcome to Prodds
  • Prodds Predict
    • How to Make Prediction?
    • What is Loss Shield?
    • Types of Prodds Prediction Pools
    • How to Claim Winnings?
    • Fees and Charges
  • Prodds Arena
    • Coming Soon
  • Account
    • KYC Verification
    • Deposit and Withdrawal
    • Disputes and Complaints
  • Tokenonics
    • Prodds Ecosystem
    • Utility Token - $RDM
      • How to get $RDM
      • How to redeem $RDM?
    • Governance Token - $PRD
      • $PRD Supercharger
      • Token Allocation
      • Release Schedule
  • NFT Utility
    • Prodds Box
    • Predict Slip
  • Responsible Gaming
    • What is Responsible Gaming?
    • Tools to Stay Responsible
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  • $RDM Backing Mechanism
  • Stable Reserve (90%)
  • Variable Reserve (10%)
  • How $RDM is Minted?
  1. Tokenonics

Utility Token - $RDM

PreviousProdds EcosystemNextHow to get $RDM

Last updated 5 months ago

$RDM is the core utility token within the Prodds Ecosystem, designed to power Prodds Predict, Prodds Arena, and other platform functionalities. It has a unique backing mechanism to maintain stability and usability, ensuring that $RDM remains valuable and accessible for users engaging with the platform.

$RDM Backing Mechanism

The value of $RDM is supported by a backing mechanism split into two components: a Stable Reserve and a Variable Reserve. This reserve structure is designed to balance price stability with dynamic growth potential, benefiting both everyday users and long-term stakeholders.

Stable Reserve (90%)

This portion of the reserve is held in stablecoins, primarily $USDC. The Stable Reserve ensures that $RDM maintains a base level of stability, minimizing price volatility and making it a reliable token for users on the platform. Eligible $PRD holders can adjust the portion between 80% to 95% via DAO Voting.

StableReserveAddress = ""

Variable Reserve (10%)

The Variable Reserve is held in a mix of $POL (Polygon’s native token) and $PRD (Prodds’ governance token). This reserve supports user transactions by ensuring sufficient $POL is available to cover gas fees on the Polygon network. Additionally, the inclusion of $PRD in the Variable Reserve fosters a consistent demand for the governance token, aligning with Prodds’ long-term ecosystem growth strategy. Eligible $PRD holders can determine the backing ratio between $POL and $PRD.

VariableReserveAddress = ""

How $RDM is Minted?

$RDM is minted on a 1:1 basis with $USDC. When users transfer $USDC to acquire $RDM, the $RDM Minting Contract mints an equivalent amount of $RDM, ensuring each token is backed by assets in the Stable Reserve and Variable Reserve.

The $USDC received is directed to the Stable Reserve to provide stable backing for $RDM. A portion of this reserve is then swapped into $POL and $PRD, which are allocated to the Variable Reserve. The $RDM Mint Smart Contract is audited by Hashlock to further secure this process, providing users with a safe and transparent system.