Token Economy White Paper
SEPTEMBER. 2021V 0.71
TOKEN: Rangers Protocol Gas $RPG
#imToken# #7213# We are modifying our token information in imToken. After this modification, users will be able to see the Rangers Protocol Gas icon on imToken, manage their RPG tokens in a more convenient way, and see more token information.

Pt. 1 Rangers Protocol Introduction

Rangers Protocol is a future-oriented virtual world blockchain infrastructure. It integrates cross-chain, NFT, EVM and distributed network protocols, professionally supports NFT and complex application. Rangers Protocol serves all entrepreneurs and pioneer developers, allowing them to freely try out content creation, cross-chain operation and applications development in the Rangers Protocol ecosystem without permission.
From the technical point of view, Rangers Protocol is divided into two parts: Rangers Engine and Rangers Connector.
Rangers Engine is the core part of Rangers Protocol. It is a high-performance chain that supports complex applications and is highly scalable. It includes the RPOS-based VRF+BLS consensus mechanism, the EVM-compatible virtual machine REVM, the NFT protocol that can contain historical data of the entire NFT life cycle, the storage module responsible for asset and data storage, and the node module responsible for block generation.
Rangers Connector is responsible for completing the interconnection with various public chains, and its primary function is to provide cross-chain services for developers and users. It includes a consensus mechanism based on VRF+TSS, full nodes of the origin chain and target chain responsible for providing trusted data services, and modules responsible for cross-chain transactions.

Pt. 2 Token Design

2.1 Token Definition

RPG (Rangers Protocol Gas) is the Rangers Protocol ecosystem token, with a total supply of 21 million pieces.
RPG is the native token of Rangers Protocol. There are also RPG tokens issued on ERC20 and BEP20 format.
In the economic system of Rangers Protocol, ecological nodes that generate blocks are divided into proposal and verification nodes. This system adopts an open participation mechanism, allowing all users to participate in the system’s operation.

2.2 Design Principles

Technically, Rangers Protocol implements parallel computing through VRF random election + BLS signature algorithm, and introduces high-concurrency collaboration and preprocessing technologies in distributed systems. It is better than Bitcoin in terms of decentralization – General network-compatible devices, rather than customized professional devices, can become nodes. In terms of security, VRF truly random numbers select groups to ensure that the working group is unique at a certain altitude. The periodic Check Point mechanism ensures that the block data is “final”. It eliminates problems such as long-range attacks and private mining.
In terms of design, the token economy system must create real value for each user and encourage users to increase their productivity. Therefore, Rangers Protocol designed the Protocol Principle and Transparency Principle. Protocol Principle: an excellent economic system relies on protocol behavior and economic incentives rather than lengthy procedures and coercive measures. Transparency Principle: the system can have a centralized design, but the black box should be eliminated as much as possible.

2.3 Token Allocation

2.3.1 RPG Economic Circulation

Tokens will circulate among users, developers, investors, and ecological nodes. First, Rangers Protocol will be connected to major platforms and encourage developers to develop, distribute, and operate their applications based on Rangers Protocol. Secondly, Rangers Protocol has designed the tokens purchase and stake mechanism, meaning developers need to purchase and stake tokens to use Rangers Protocol. When users experience applications deployed on Rangers Protocol, they also need to buy and consume tokens. For instance, they can pay tokens to application developers. With the ecosystem’s expansion, the token will continue to increase in value. More and more token holders and more ecological nodes will make it a virtuous economic cycle.

2.3.2 RPG Usage Scenarios

    RPG (Rangers Protocol Gas) generates blocks through ecological nodes divided into proposal and verification nodes. Ecological users pay RPG as a deposit and become a proposal node through community voting. Rangers Protocol has designed an RPG stake mechanism. Users need to purchase and stake RPGs to become a verification node.
    The RPG Foundation will establish communities with different functions, including ecological governance, developer, and token holder communities. The community can use RPG to participate in the governance of Rangers Protocol.
    Rangers Protocol will launch a sub-chain plan to support developers in releasing isomorphic sub-chains to Rangers Engine. Those sub-chains are allowed to issue tokens in the same format of RPG. The launch of the sub-chain requires the community to use RPG to vote.
    Developers developing, distributing, and operating their applications based on Rangers Protocol need to consume RPG as the gas fee.
    Users need to pay and consume RPG when using applications that have been deployed on Rangers Protocol, such as paying RPG to application developers. When users use Rangers Protocol for cross-chain or transfer, they also need to pay or consume RPG as usage or gas fees.
    When creators use Rangers Protocol-based tools to publish and edit works and upload them to the blockchain when they carry out marketing activities in decentralized trading markets, auction markets, copyright centers, and other application markets, they also need to pay or consume RPG as usage fees or gas fees.

2.3.3 RPG Acquisition Scenarios

    Both the proposal node and the verification node can receive RPG rewards by participating in the block production process.
    The Foundation will regularly host development competitions, game contests and other activities to attract developers. Winning users or teams can receive RPG rewards directly and their applications will be further incubated into commercial dApps by the Foundation.
    The foundation encourages eco-applications to use RPG as a reward to users for their behaviors.

2.3.4 RPG Appreciation Logic

    70% of RPG tokens are generated with block generation (proposal nodes and verification nodes) or unlocked with block generation (core team and incubator). 8% of the remaining amount is released every 180 days. The overall production is reduced every four years by 50% with a smooth production reduction curve.
    The Random PoS mechanism adopted by the governance of $RPG tokens is the prerequisite for becoming a proposal node or verification node by staking a certain amount of $RPG. The more you stake, the higher the probability of being selected by the VRF mechanism to participate in the block production. The mechanism will reduce the instantaneous inflation rate of RPG and further ensure the slow release of $RPG tokens.
    In addition to mentioned above rich $RPG usage scenarios (Infrastructure Scenarios, Stake Scenarios, Governance Scenarios, Sub-chain Scenarios) and the roles of participants (developers, users, and creators), Rangers Protocol seizes an exceptional blockchain game track with content and service as a business model. Basic application service components (IDE, Storage Service, Data Service, Private Key Management, and Assets Management) that can help developers reduce costs and improve efficiency have basic service components that have fee-charging scenarios and potentials that are comparable to the traditional game industry. These will increase the consumption of $RPG or help $RPG transfer to ecological co-builders.

2.4 Token Initial Issuance Mechanism

    Investors (10%): Equal unlock (claim) each day. Token allocation for investors will be fully unlocked within 400 days.
    The core team (14%): Core developers and maintainers, 8% of the remaining amount is released every 180 days
    Incubators and consultants (7%): Incubators and strategic partners, 8% of the remaining amount is released every 180 days
    Ecological community (49%): 8% of the remaining amount is released every 180 days, the ecological community is divided into the proposal and verification nodes
    1.
    Proposal nodes (35%): join through RPG-staking election and provide special hardware
    2.
    Verification nodes (14%): stake RPG, and provide required hardware
    Ecological fund (20%): The unused amount is locked, community voting will be held, and relevant announcements made on the foundation website upon use
    1.
    Market Operation (8%): DAO mechanism approves proposals based on community voting
    2.
    Developers (7%): Grant mechanism distributes rewards to community members based on contribution
    3.
    Market Value Management CEX (2%)
    4.
    DEX Liquidity (1%)
    5.
    KOL (0.83%)
    6.
    Liquidity Rewards (0.67%)
    7.
    IDO (0.5%)
    Treasury (0%): Reward and penalty pool, dynamically balanced during operation, the value can be adjusted by community voting
    1.
    Slash mechanism: Punishment based on the security threat level
    2.
    Taxation mechanism: Service fees for middle layer protocols and upper-layer applications

2.5 Supply Model

2.6 RPG Block Production Process and Incentive Mechanism

2.6.1 RPG Block Production Process and Rewards

2.6.1.1 Block Production Process
    Nodes that produce blocks will get corresponding rewards. The proposal node (proposal group) sends a proposal and hands it over to the verification node (verification group) for verification. After all individual verifications complete the signature verification, a group signature is formed. The block is allowed to be produced and broadcasted.
    Average block production time: 1 block/second
    Block-production node designation: Multiple nodes compete to form block nodes according to the established VRF random number.
    Block generation mechanism: Each time a block is produced, the candidate nodes of the entire network randomly generate multiple proposal nodes through the VRF algorithm so that the proposers are random and unpredictable. The proposals are sent to the verification group in various channels in parallel, which limits the situations where the proposals and verifications misconduct.
The VRF mechanism selects the verification group based on the threshold signature algorithm, ensuring that the verification group is unpredictable, unselectable, and unconcealable. When the block is produced, it is only necessary to achieve a lightweight verification within the group. The block is produced quickly in a multi-channel parallel pipeline. Soft forks’ problem will not arise because the block generation rules directly specify a node to generate blocks. Even if another node completes the proposal simultaneously, it will not be selected as a block-generating node.
2.6.1.2 Within a Block Production Process
    The proposal node is selected from the proposal group based on VRF and is responsible for generating blocks;
    The proposal node selects the verification group through VRF, and sends the block to each member in the verification group;
    Every member in the verification group will verify the block, sign, and send the signature to every other member in the verification group;
    After verifying each group member, after collecting the signatures of a threshold number of others, the group signature is generated and broadcast to the entire network.
    1.
    Block production speed: 1 block/second;
    2.
    Group Lifecycle: 2 hours;
    3.
    Block distribution cycle: 10 hours (36000 blocks), once every 36,000 blocks;
    4.
    Block rewards: A single block reward is calculated based on the current production mechanism;
    5.
    Block distribution: Single block rewards are distributed according to distribution rules.

2.6.2 RPG Block Production Incentive Mechanism

    Nodes Revenue Calculation Formula:
ARP ≈ Current release amount / (average stake amount of each proposal node*number of proposal nodes) * (1+0.92) * 100%
    The first-phase annualized income for the proposal node is calculated as follows:
Current release amount = 588,000 RPGs(calculated based on 8% of the remaining release in each phase, the proportion of proposal nodes is 35%)
The average stake amount of each proposal node = 10,000 RPG
Number of proposal nodes = 20
APR ≈ 588,000 / (10,000*20) * 1.92*100% = 564.48%
The daily annualized rate of return is:
APR / 365 ≈ 1.55%
    The first-phase annualized income for the verification node is calculated as follows:
Current release amount = 235,200 RPGs (calculated based on 8% of the remaining release in each phase, the proportion of verification nodes is 14%)
The average stake amount of each verification node = 1,000 RPG
Number of verification nodes = 200
APR ≈ 235,200 / (1000*200) * 1.92*100% = 225.79%
The daily annualized rate of return is:
APR / 365 ≈ 0.62%
*The rate of return will change based on the real-time stake status

2.7 Becoming a Proposal/Verification Node & Block Rewards

2.7.1 Proposal Nodes

It requires staking of 1250 RPG to become qualified of being a proposal node. With Rangers Protocol’s development and the governance mechanism’s improvement, RPG’s number staked as proposal nodes will continue to be adjusted. RPG cannot be unlocked during the period from the stake to block reward distribution. It can only be unlocked after the node reward is issued (10 hours). Each node can stake once in each block distribution cycle. When distributing RPG to the rewarded proposal nodes, it will be done according to each node’s RPG stake ratio.
    After the block is generated, the proposal group will receive 35% of the total block rewards.
    Each block-producing proposal node will get 10.5% of the total block rewards
individually.
    All nodes in the proposal group, including the block-producing ones, will share 24.5% of the remaining rewards according to the nodes’ stake ratio.

2.7.2 Verification Nodes

Any registered user must stake 250 RPG to be qualified to be a verification node. There is no restriction on node application, as long as the stake can enter the random pool, waiting to be selected as a verification node. During the period from the stake to block reward distribution, RPG cannot be unlocked. It can only be unlocked after the node rewards are issued (10 hours). Each node can only stake once in each block distribution cycle. When distributing RPG to the rewarded verification nodes, it will be done according to each node’s RPG stake ratio.
    After the block is produced, the verification group will receive 14% of the total block reward. All nodes in the verification group will be rewarded according to the nodes’ stake ratio.

Pt. 3 Ecosystem Construction

3.1 Foundation

Rangers Protocol Foundation is mainly used for ecosystem construction, market promotion, healthy system operation, and community maintenance. Besides, some funds are used for investment to promote ecological development while maintaining the foundation’s long-term sustainable operation.
    The foundation shall fulfill the following obligations:
    1.
    Organize an open-source community or technology outsourcing team to complete Rangers Protocol’s launch and iterative upgrades.
    2.
    Develop the market and build an application ecosystem.
    3.
    Support or invest in Rangers Protocol-based dApp developers.
    4.
    Prevent and punish behaviors unfavorable to the Rangers Protocol ecosystem and maintain the system’s healthy growth.
    At the same time, the foundation enjoys the following rights:
    1.
    Initiation of voting proposals.
    2.
    Security deposits for forfeiture.
    Rangers Protocol Foundation only has the right to initiate a proposal for the entire system’s governance. Then the community will vote to decide whether the proposal is finally implemented. In terms of community governance, the foundation can initiate and include without limitation the following proposals:
    1.
    Modification of system parameters.
    2.
    Proposal improvement and resource pricing usage.
    3.
    Penalties for inaction or evil done by the proposal nodes.
    4.
    Penalties for inaction or evil done by the verification nodes.
    5.
    Punishment for evil done by dApp developers.
    6.
    Other malicious acts.

3.2 Community Ecosystem

As a decentralized, game-focused solution, Rangers Protocol Foundation development is inseparable from the community’s support. Rangers Protocol Foundation actively organizes and establishes communities with different functions, including ecological governance, developers, and token holder communities. Regardless of the community’s function, the goal of existence is to promote healthy and stable development.

3.3 Proposal Nodes

Ecosystem users pay tokens as a guarantee and become a proposal node through community voting.
    As a proposal node, users must fulfill the following obligations:
    1.
    Stake not less than the specified amount of security deposit.
    2.
    The investment performance is good, and the server with a good network is used as the proposal node.
    3.
    Guarantee long-term online activity.
    4.
    During events, complete the tasks that need to be completed for node roles.
    Correspondingly, the rights enjoyed by users include:
    1.
    Income issued in the form of tokens
After the user is selected as a proposal node, the server performance and network performance must be guaranteed. Suppose the proposal node cannot be packaged to generate a witness unit within the specified time due to server or network reasons. In that case, it will be treated as a lost block and recorded in the proposal node’s statistical information, which will affect the reward distribution to the node.

3.4 Verification Nodes

Ecosystem users become candidate verification nodes by staking and are randomly selected as the contract’s verification nodes responsible for executing the contract when the contract is created or executed.
    As a verification node, users need to fulfill the following obligations:
    1.
    Hold a one-time stake on the verification node deposit.
    2.
    Maintain a good network and stay online for a long time.
    At the same time, the verification nodes enjoy the following rights:
    1.
    Get income issued in the form of tokens

3.5 Developers

At early stage, the foundation will regularly hold development or game contests and other activities to attract developers. Winning users or teams can directly receive token rewards, and the foundation will further incubate applications into commercial ones.
    Developers need to fulfill the following obligations:
    1.
    Pay specific tokens as a deposit and submit application materials to become a certified dApp developer. Only certified dApp developer applications will appear in the protocol ecosystem application.
    2.
    Smart contracts must not commit malicious acts; otherwise, they will be punished.
    3.
    Pay a specific token to deploy the application.

Pt. 4 Governance Mechanism

4.1 Proposal Nodes Election

Proposal nodes are generated using the algorithm mechanism of VRF+BLS. The user or organization using Rangers Protocol applies for the proposal node election to the foundation. After paying the deposit, they can participate in the election of the proposal node.

4.2 Stake Mechanism

To become a system node (proposal or verification), ecosystem users must stake tokens. The stakes are divided into proposal node stakes, verification node stakes, and certified developer stakes.
    The proposal nodes stake can only guarantee that users can become proposal nodes.
    The verification nodes stake can ensure that users are selected into the candidate verification node pool. However, the verification group is formed by the verification nodes randomly chosen from all the candidate node pools.
    Suppose a user does not act for a long time or initiates a malicious attack while serving as a proposal node or verification node. In that case, the foundation can trigger the contract to freeze the user’s stake, cancel the user’s application for the role of the proposal/ verification node, publicize it to the community, hold voting, and then forfeit a certain degree of fines towards the staked tokens. Similarly, certified developers must ensure that there is no malicious behavior in their developed applications or products. If they are found to be so, the foundation can also initiate penalties and confiscate developers’ staked tokens. The confiscated staked tokens are transferred to the foundation to help the further construction of the community.

4.3 Slash Mechanism

The purpose of designing a punishment mechanism is to ensure that nodes and users are honest and trustworthy. Inaction or malicious behavior will be punished.
Different from the direct penalty mechanism of agreements such as Plasma, Rangers Protocol uses incentives in the economic model to encourage nodes to be honest and trustworthy:
    Proposal nodes
In the Block Rewards part, we mentioned that the block-producing proposal node alone receives 10.5% of the total block rewards. So, if the proposal node does not act or do evil, it will lose this part of the reward, unwise for proposal nodes.
    Verification nodes
Assuming that the verification node does not act and the group verification fails, the proposal node will select another verification group. This will result in no benefit for all nodes in this group.

4.4 Parameters Modifications

Most of the system’s operations (such as annual interest rate and the proposal nodes’ block generation time) are specified based on the operational experience of many blockchain projects and their characteristics. However, with the system operation, the community and applications are constantly changing. These parameters are no longer suitable for the new environment of the time. The foundation can initiate a proposal to modify the system parameters. The community decides whether the parameter will be finally modified by voting.

Pt. 5 Conclusion

Ranger Protocol Token Economy White Paper reflects our current thinking on the token economy. The token economy design itself is a virtuous economic cycle, enabling long-term currency holders to lock up their positions and gain benefits. All users in the system will have corresponding benefits. Developers who hold tokens can obtain appropriate dApps development resources without worrying about user acquisition and infrastructure performance limitations and constraints. Users can also focus on the new experience of dapps and digital assets. And system maintainers also get their due rewards.
Besides, Rangers Protocol’s reasonable token design is based on a complete distribution mechanism, incentive income, and VRF’s truly random algorithm. RPG’s consumption, circular use, and inherent value provide a powerful growth engine for itself. It will be a qualitative leap to the underlying protocol of the existing blockchain industry.
Last modified 9d ago