Utility Token - $RDM
Last updated
Last updated
$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.
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.
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.
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.
$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.