R5 Tokenomics

Overview

The R5 protocol employs a complex economic model to achieve a perfect balance between incentives to miners and users, low transaction fees, and ecosystem development.

A few key concepts:

• Super Epochs: Represent block intervals whose lengths follow a geometric progression with a common ratio of 2.

• Block Rewards: Rewards paid to the miners after the successful validation of a block.

• Transaction Fees: Fees paid by network users when sending transactions and interacting with smart contracts.

You can read the full Litepaper on the protocol's economic framework below.

142KB

Economic Framework.pdf

pdf

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Maximum Supply

There will ever be only 66,337,700 R5 coins. It is expected that the protocol will reach its maximum issuance of coins at block height 1,290,406,400 .

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Super Epochs & Mining Rewards

Mining rewards are halved at the start of each Super Epoch, and the number of blocks in each Super Epoch increase in a geometric progression with a common ratio of 2. There will be a total of 7 Super Epochs throughout the existence of the protocol.

Super Epoch	Block Interval	Total Blocks in Super Epoch	Block Reward
1	1 - 4,000,000	4,000,000	2 R5 per Block
2	4,000,001 - 8,000,000	4,000,000	1 R5 per Block
3	8,000,001 - 16,000,000	8,000,000	0.5 R5 per Block
4	16,000,001 - 32,000,000	16,000,000	0.25 R5 per Block
5	32,000,001 - 64,000,000	32,000,000	0.125 R5 per Block
6	64,000,001 - 128,000,000	64,000,000	0.0625 R5 per Block
7	> 128,000,000	Undefined	0.03125 R5 per Block

After block height 1,290,406,400 (the mining rewards sunset block) the mining rewards cease and miners start earning transaction fees for new blocks validated.

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Initial Funds Allocation

Initial Funds Allocation is not to be confused with pre-sale. To guarantee alignment between recipients and the long-term goals of the project, there was no pre-sale to venture capitalists or early investors.

There were a total of 2,000,000 (two million) R5 Coins pre-allocated before the protocol went live - a little over 3% of the maximum supply. These coins were used to fund the initial development of the protocol and further consolidate its growth after the public launch. The distribution of these coins followed the schedule below:

Destination	Percentage Allocated	Number of Coins
Founders	40%	800,000
R5 Labs (Soft-committed to marketing, R&D, operations, and liquidity)	40%	800,000
Strategic Partnerships, Managed by R5 Labs	10%	200,000
Bug Bounty Program, Managed by R5 Labs	10%	200,000