> For the complete documentation index, see [llms.txt](https://docs.redacted.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.redacted.money/project/tokenomics.md).

# Tokenomics

Redacted's Reserve is designed to be run by a network of independent relayer nodes (see [How the node network works](/node-network/node-network.md)). The protocol token is how that network is secured and governed. The design is set out below, and final terms accompany the token announcement.

## What the token does

The token secures the node network. Node operators bond to run a node, and a node that breaks the rules loses part of its bond, which is what keeps the network honest. Bonds are in RUNE at launch, and after the relaunch token holders can move them to the protocol token.

Holders can also back a node. They stake the bond currency (the token after the relaunch) behind a node whose operator opened staking. Stake counts toward the node's bond, and the operator holds at least 10% of the minimum itself. Rewards are split by stake, and the operator keeps a commission on the stakers' part. Stakers claim any time. A slash takes from the operator and the stakers in proportion, unbonding stake included, and unbonding takes the same period as a node bond, about 14 days. Governance switches staking on after the relaunch. A node needs its bond to be active, so where holders stake helps decide which nodes run. See [Staking behind a node](/node-network/node-network.md#staking-behind-a-node).

After the relaunch, holders also take part in governance. They decide who runs nodes by staking behind them and through votes on the bond size, on removing or slashing a node and on opening admission to everyone. They also decide the fees, the wait, code upgrades (with the 3-day delay), the screening policy and new products, through on-chain votes with notice periods. Stake influences which nodes run without being a direct election. Until the relaunch, the DAO holds this role. See [Who decides what](/protocol/system-overview.md#who-decides-what).

## Where protocol fees go

Protocol fees are collected on-chain by the contracts (see [Fees](/using-redacted/fees.md)), and they pay for the network that produces them. Node rewards go to the operators that relay private actions and stay online, shared with the stakers who back them. Rewards follow work and risk, so a node earns a share of the fee of every action it carries while its bond is at stake. The treasury also receives a share, which pays for audits, screening data, development and integrations.

The split is set by token holders (the DAO until the relaunch), with notice. While volume is low, the treasury can also fund a stipend for active nodes, with the details published at launch.

## The Ronin community

The Ronin NFTs were launched on Terra in 2022 by TerraBay, an independent project. The Terra collapse ended that project, and its treasury was lost with LUNA.

Parts of the Ronin community later came together around Redacted, and every Ronin has already received 3,330 tokens on Terra 2.0.

## The relaunch on THORChain

The token is to be relaunched on THORChain, next to the network it secures. There it bonds and backs the nodes and steers the network through governance, as described above.

## Token launch information

The token announcement will include the confirmed supply and schedule, the node and staking rules, the distribution contracts and the verified network addresses.

Always verify the network and contract address in the official announcement before sending assets.

This page describes the design. It is not an offer to buy or sell anything or investment advice, and it promises no price or return.