Me too…

Unfortunately that wasn’t the case with the Launch of Scarlet Chains V2.

After relentless testing, V2 looked well and truly ready to go. All scenarios had been tested, and everything was at a point where it was working flawlessly.

However, when we actually deployed and went live on mass scale with all users, all hell broke loose.

The most prominent issue however, was that our discord and telegram communities were blowing up with the same question over and over…

“Where are my Red Chains?”

For some people, everything worked fine, but it was obvious that this wasn’t the case for everyone.

Within half an hour of launching the project we had worked tirelessly on over the past couple of weeks, we had to shut it down and pop open the hood… and once we did it was clear that something wasn’t quite right.

Because of this, we decided to go through every line of code on the ~25 Smart Contracts that make Scarlet Chains what it is with a fine tooth comb, and it became apparent we need to recode everything from the ground up again.

Not because we could find anything wrong, but worse, because we COULDN’T find anything wrong.

What started off with what we hoped would be a couple of days, became a couple of weeks, and now here we are almost 2 months later.

Throughout this time, we have tried to make announcements in discord and telegram as much as possible — however the way coding works, sometimes there’s just not anything new to announce!

For those that may have missed any of the announcements, I will break down those changes, some things you wouldn’t have heard of, and then a recap of all the other previously mentioned changes below.

Changes since the last Medium

Red Chains were corrupted pre-launch of V2

Just before we were about to launch V2 (or attempt to), all of the Red Chains were corrupted. This resulted in us needing to redeploy them all, and then to simplify everything, we split all ROI from Red Chains equally amongst all Red Chains still in the users wallet.

On top of this, we received a lot of feedback from the community that the proposed way was overly complex.

Change to the way Creation Cost would work for V2

Here is what was posted in the previous Medium Article:

However, since then we announced (in discord) the following change:

For example, if you have 4 Red Chains that you are upgrading to Platinum with the following ROI:

CHAIN 1: 80% ROI

CHAIN 2: 90% ROI

CHAIN 3: 110% ROI

CHAIN 4: 110% ROI

Chains 1 and 2 fall under the 0–99% bracket, so would cost $50 each (total of $100).

Chains 3 and 4 fall under the 100–149% bracket, so would cost $40 each (total of $80).

$50 + $50 + $40 + $40 = $180

$180 + $15 ($15 is the standard base cost of creating any Chain) = $195.

Therefore, it would cost $195 in USDT-R to upgrade these 4 Red Chains into a Platinum Chain.

The SCAR Shop

As we are needing to redeploy every single contract that we had used for Scarlet Chains — we are not going to be using or migrating any of the previous tokens.

To offset this, we will be opening a “Shop” dApp for you to be able to spend your V2 $SCAR that you had already migrated. This shop will be coming out post release of V2 as soon as possible.

The options are subject to change, but at the time of writing here is what we have proposed:

Option 1: Validator — 15 available — 250 SCAR
Option 2: RLL — 10 available — 167 SCAR
Option 3: Dusk Premium — 35 SCAR
Option 4: Redlc @ $1.50 200,000 total available
Option 5: OuroBorus: 20 available — 25 SCAR
Option 6: Oogam NFT: 1 available — 200 SCAR
Option 7: Alchemia Labs Access (A multi-chain functional NFT Lab system that combines the NFT ecosystem of Dusk to all EVM compatible blockchains): 15 SCAR
Option 8: Early Access to Riimu (Redlight RPG Game): 3 SCAR
Option 9: Alchemic Silver 400 total 4 SCAR each can buy up to 4 per wallet
Option 10: Alchemic Gold 200 total 8 SCAR each can buy up to 5 per wallet
Option 11: Diamond NFT: 5 available — 130 SCAR
Option 12: Ruby NFT: 5 available — 80 SCAR
Option 13: Jade NFT: 5 available — 50 SCAR
Option 14: Scarlet Nights: 5 available — TBD

There will also be a Scarlet Chains Raffle:
5 Fullmoons

5 Dawns Solace

10 Scarlet Nights

Possibly more options to come…

Tickets for the Raffle will cost 1 SCAR each and you can enter as many times as you like.

Only 1 entry ticket can win so if you win your remaining tickets (if any) will be removed from being able to win further prizes.

The things you wouldn’t have heard of

The items below have been discussed in discord, however no formal announcement has been made until this point.

SCAR price change

We have said in the past that we would be changing SCAR V1 price from $20, to $60 when V2 goes live.

However, before going live, and in particular during the downtime, we have received a lot of feedback around the price jump.

A lot of people were upset on the drastic price jump for a few reasons, mainly being that:

• They would gain ROI much quicker than expected, causing them to have Regen their Chains much sooner
• The price increase would cause too much of a barrier of entry for newcomers to join the Scarlet Chains protocol

In light of this, we have decided to launch SCAR V2 (V2.1 you could say) at $40 instead.

Another reason for this as when we were going to initially launch V2, your V1 Chains were going to rollover into the V2 system. However, as everything is being redeployed, you will all be receiving V2 Chains. By changing the V2 initial price to $40, this allows us to adapt to this transition. Because of this, you will be getting more ROI than initially anticipated from your V1 Chains.

By doing so, this is going to offset the complaints people had, while still offering current Scarlet Chains users a double in price from V1.

Just because we aren’t going straight to $60, this doesn’t mean that we can’t eventually get there. With the Scarlet Chains Token, we have the possibility of slowly raising it’s value over time as certain metrics are met (as was originally proposed in the V1 Whitepaper).

It is also important to note, that this means you will still be receiving a higher daily net payout, higher total gains, and faster to recover your initial V1 ROI.

ROI reduction during downtime calculation

We never had any intention of Scarlet Chains being down for as long as it has been, but we did say from the get go that any accrued rewards during said downtime, will be used to reduce your ROI when we do go live with V2.

There has been some confusion around how this will work, so I will break down the formula below:

Firstly, we have removed upkeep/potential upkeep costs from the equation to benefit the user.

Accrued rewards during downtime have been divided by 2, because of the value increase of SCAR from $20 to $40.

Once we have this figure, we then remove 28% to account for the claims/sales taxes. (1–15%-15% = 72.25 = 27.75% difference, rounded up to 28% due to solidity)

The figure we arrive at will be your ROI reduction amount.

Now, we take your already Accrued ROI (From V1) and minus the ROI Reduction amount. This is what we call your V2 Reduced ROI.

We take this dollar amount and divide it by V1 Chain cost (I.e $215 for Red), to get V2 Reduced ROI %.

Please note, this amount cannot go in to negative %, or in other words, the lowest this can go is 0%.

Now, before we go live, we add a 50% Base loading to your V2 Reduced ROI % (to account for the fact that V2 is double in price).

This means that the minimum amount of users that were involved in V1 will start at is 50% ROI.

This is also to counter those of you who decided to mass create Red Chains in V1 right before we were about to transition to V2.

TLDR:

Accrued Rewards during down time / 2 = X

X — 28% = ROI Reduction Amount

V1 Accrued ROI — ROI Reduction amount = V2 Reduced ROI

V2 Reduced ROI / V1 Chain Cost = V2 Reduced ROI %

V2 Reduced ROI % + 50% = V2.1 Starting ROI (AKA your new ROI at launch of V2)

For example, This means in a best case scenario (starting at 50% loading) you will receive a total ROI of 676% of your initial investment into a V1 Red Chain)

Changes to Shattered Taxes

Previously announced Shattered Taxes:

Shattered Taxes are changing to the following:

Changes to how compounding is going to effect ROI

Partly due to the success of Alchemist Chains, and partly due to the ease of understanding, we have decided to change how compounding new chains will effect ROI.

Once V2 launches, this will work as follows:

Whenever you compound a new Red Chain, this will cost you 10% of what you have earnt from each chain used to compound (in USDT-R, up front), and also add that same amount to that Chains ROI.

For example:

You have 2 Chains (Of any kind), and you decide to compound a new Red Chain

Chain 1 has unclaimed = 10 SCAR

Chain 2 has unclaimed = 5 SCAR

Compound Tax in USDT-R paid up front = 1.5 SCAR worth (10% of 15 SCAR = 1.5 SCAR AKA $60)

Amount added to the ROI Calculation = 1.5 SCAR.

This is to ensure that people can not make an unlimited amount of new Chains without adding anything to their Chains ROI by gamifying the system.

Changes to Full Moon and Dawns Solace

Full Moon

Full Moon will now offer the following bonuses:

• 10% increase in rewards production across all chains
• 15% reduction in Regen Tax

Dawns Solace

Dawns Solace will now offer the following bonuses:

• 10% increase in rewards production across all chains
• 2% reduction in Darkness Upkeep tax

How the V2 Rollout is going to work

To ensure we don’t have to shut down the whole project for maintenance, we will be doing a staggered launch for V2.1.

This will allow us to rollback one step if there are any unforeseen issues, diagnose the issue, and then keep moving forward as planned (AKA we shouldn’t have to shut down entirely to solve any issues this way).

The roll out will be happening in the following order:

• Scar Token V2 redeployed
• Open up the Scarlet Chains dApp
• Start Airdropping Red Chains
• Create/hopefully open SCAR V2 Shop while airdropping of Red Chains is happening
• Once Red Chains are complete/confirmed to be working as intending, move on to airdropping of Platinum Chains
• Once Platinum Chains are complete/confirmed to be working as intending, move on to airdropping of Black Chains

Because this will be a live roll out, your Red Chains (and in turn Platinum/Black Chains) will be live and active as soon as they hit your wallet.

It’s important to note also, that while only Red Chains are active, you will not be able to create new Platinum or Black Chains (You will be able to do this once the relative Chains roll out has begun).

This means you will need to check the dApp/blockchain explorer periodically to see if you are good to go!

We appreciate all of the feedback we’ve had over the past couple of months, and we are looking forward to getting past this (rather big) road hump with each and every one of you!

Thanks for sticking with us!

Rory (RED)

Linktree (With links to our website, all socials plus more)

https://linktr.ee/RedlightFinance

This ranged from confusion to excitement and from disbelief to anger, but once things were explained more clearly, most people seemed to see the upside of the changes — the price of $SCAR going up, along with the long term sustainability of the protocol as a whole.

We at Redlight Finance have always said, we are nothing without our Community, and the release of the V2 Medium is a testament to this.

Since this has been released, we have had countless feedback from different community members, mods and admins, and thanks to this we have battened down the hatches on a series of different loopholes that still remained in V2.

Below I will be outlining the changes, and as we have had to undertake vigorous extra testing in the time that we would have simply been upgrading the already tested protocol, this means we will need to delay the launch of V2 by a matter of days.

Most importantly, if you paid your upkeep before the dApp going down, you will still be generating rewards in the downtime.

Once V2 goes live, we will be resetting all chains upkeep timer to 0, so that you don’t get penalised by not being able to use actions in the downtime to lower your upkeep.

Without further ado, I bring to you, the new V2:

Chain Creation Costs

The Chain Creation costs have been upgraded as follows:

Transfer Tax

This has been changed from 10% to 15% to avoid people gaming the system.

ROI transferred over when upgrading

When upgrading from SCR to SCP as an example, it will take the average ROI of all 4 SCR, and apply this to your SCP.

i.e if you use 4 SCR with the following ROI:

• 0%
• 52%
• 123%
• 89%

(0+52+123+89) divided by 4 = 66%

Therefore, your SCP will start with 66% ROI

Changes to upgrading your V1 SCR to V2 SCP and/or your V1 SCP to V2 SCB

Your V1 ROI will pull over from all of your scarlet chains. If you were at 115% ROI on a SCR, you will have 115% in V2.

You can continue to compound and claim as normal. However, if you choose to upgrade a SCR or a SCP that has less than 200% ROI, it will be treated as a chain that has 200% and will be charged the 200% tier chain creation cost.

This is to ensure you are paying a higher upgrade fee without immediately tripling the value of your investment through the click of a button.

If your V1 SCR or SCP has more than 200%, then the original ROI will be pulled through to the higher chain.

Example 1

Chain Creation of SCP

Burning 4 v1 REDs of SCR ROI 0%, SCR ROI 140%, SCR ROI 70%, SCR ROI 100%

New Chain created SCP ROI 200%

Example 2

Chain Creation of SCP

Burning 4 v1 REDs of SCR ROI 250%, SCR ROI 240%, SCR ROI 250%, SCR ROI 260%

New Chain created SCP ROI 250%

Regen Fee Tiers (Cost per Chain)

We have made an adjustment to the cost of entering the Regeneration Vault when the time comes.

This is to avoid people essentially being able to create a brand new wallet for the fraction of a price, after they have already received their ROI.

The changes are as follows:

Entry cost to enter the Sacrificial Vaults

When you enter the Sacrificial Vaults, the new chain (if you receive a chain rather than an enhancer) will now have the highest ROI assigned to it.

For example, if you enter 3 SCR with 10% ROI, 20% ROI and 50% ROI, if you were to receive a new SCR it would have an ROI of 50% from the get go.

Also, for every Chain you enter into the Sacrificial Vaults, you will need to pay an entry fee as follows:

SCR = $10 USDT-R

SCP= $150 USDT-R

SCB = $1000 USDT-R

There is a high cost for SCB to avoid bypassing the Regeneration Vault.

Changes to Max Wallet Enhancers

As the protocol is changing, we needed to make the appropriate adjustments elsewhere.

In saying this, the following changes will be made to the Full Moon and Dawns Solace enhancers:

Full Moon

15% Reduction in Regeneration Fees

5% Sales Tax Reduction

5% Increase to rewards generated from all Chains

Dawns Solace

2% Reduction in Darkness Upkeep cost

5% Claims Tax Reduction

5% Increase to rewards generated from all Chains

Changes to the other Link Enhancers

Following with the retuning of the Max Wallet Enhancers, the other Enhancers will also be getting adjustments.

Firstly, the Total Supply of each has been changed as follows:

Secondly, there has been a retuning of the Reward Boosts as follows:

Scarlet Chains Black Compounding

To avoid a loophole where Max wallets can get close to unlimited SCR without hitting ROI on their SCB’s for a long time, we have removed the function for SCB to be able to compound new SCR.

You can still use your SCB to create new Chains, however you will need to claim first and then create.

This seemed to be the fairest way to allow SCB to continue, without severely damaging the protocol as a whole.

Witching Hour

As you know by now, there is only ever going to be 25 Witching Hours available. We received a lot of feedback saying that having these available as a First Come First Served (FCFS) was unfair, as well as only allowing people with Max Wallets to participate in purchasing them.

In light of this, we have decided to remove both of these options.

To offset the FCFS feature, we will be implementing a lottery system to purchase these when we launch them.

The way this works, you will need to burn 2 SCR to enter your wallet address into the lottery, which we will keep open for 3 days.

Once done, 25 wallet addresses will be picked at random that will be eligible to purchase the Witching Hour.

The cost to purchase if successful will still be 2 SCR, 2 SCP and 2 SCB.

However, the upkeep for these has changed to the following:

1 SCR every 3 days, however on day 27, the cost will be 1 SCP.

This works out to cost the same as the previous upkeep, however it is designed to keep the owner of the Witching Hour more accountable for their asset, as you really don’t want to miss your upkeep and have this burnt!

Due to this and the other changes, the Witching Hour will not be available at launch of the V2, but we will announce when this is ready.

Just as a reminder, the Witching Hours produce 10 $SCAR and 5 $REDLC every 24 hours.

We have also changed the requirements, that if you fail to pay upkeep on your Witching Hour within 48 Hours of it being due, it will self destruct and you will lose your Witching Hour. This was previously 72 Hours.

Silent Updates

Unfortunately as there have been a mass of changes, we have had to delay some of the features. These will be coming after V2 launches as we can still work on these without needing downtime.

• Link Enhancers will NOT be tradeable at launch of V2 (However, when they are, we will be adding Scarlet Nights to the tradeable assets).
• Changing the reward timer to be universally at 00:00 UTC. The action timer will still be set to this time.

Thank you for taking the time to read through these updates, and I will shortly be uploading a new and improved Scarlet Chains Whitepaper with all of the new information included.

Rory

Linktree (With links to our website, all socials plus more)

https://linktr.ee/RedlightFinance

Before the fun stuff…

The development train never stops here at Redlight Finance and a lot has been happening since our last Medium Article!

Here’s a quick recap for those playing at home:

• Redlight Chain ($REDLC) officially launched! You can buy this at XT, Coinstore, Bitmart, Digifinex, or our own DEX, Dawnswap. If you are wanting to buy through our DEX, you will need to bridge USDT from Binance Smart Chain (BEP-20) — you can do so via our Bridge (and bridge back if you like!).
• Scarlet Chains has been released!
• We have launched our own Decentralised Casino of sorts, The Stardust Club — if you are unsure of this, head to the Startdust Club Help section on our Discord (who knows, you may even find a referral code in there).
• The one and only Banana Man AKA Wilberto has been revealed as our Creative Producer.
• Kyle has moved into being our Head of Business Development, aiming to tackle not only DeFi projects, but traditional businesses also.
• Our discord admins have moved into more specialised roles. Texas, Dad and Bench filling Kyles big (but literally small) boots as Community Managers, Fancy Stephen taking care of the Customer Service side of things, and PacMan making sure our HR and Recruitment continues to run smoothly.
• We have announced partnerships with Crowdbotics, Sphere Finance, and Truth Seekers.
• We just came back from an expo in Silicon Valley (Tech Ex North America) Thanks to the success of this expo, we are hoping to announce more partnerships to you all as soon as we can (Along with some future Redlight developments such as Redlight Private Networks (Redlight Subnets), Redlight Cloud, and Alchemist Chains).

Before I go into more detail about what has been coined “Scarlet Chains V2”, I would like to reiterate some of the reasoning behind Scarlet Chains working the way it does.

Long before Redlight Chain, when the Redlight Finance team came together, we all had the same idea and vision:

How do you help someone learn how to be more in control of their own investment?

The answer is simple:

Make them think about it

Whether you are new here or have been a part of the ecosystem that is Redlight Finance for a while, by now you are surely familiar with Scarlet Chains. However, there’s a good chance that you don’t fully understand the in’s and out’s of the beast.

Yes, Scarlet Chains is not a simple set and forget protocol, and yes there are reasons behind this.

Sustainability

If Scarlet Chains was as simple as buying your NFTs (Chains), claiming your rewards when you want, and selling them as you go, this would only be as sustainable as the new money coming in would be.

Accountability

To combat sustainability we need to direct responsibility to everyone that is utilising Scarlet Chains, not just the Developers. Without having everyone accountable for their Chains, Chains tend to crumble into darkness.

Consciousness

Without having attention on your investment, things can change in the blink of the eye. At Redlight, we have given you all of the tools needed to make the most of your investment. However, just like a sculpture, just because you have the same tools as your neighbour, it doesn’t mean you will create the same work of art.

The Tools

On Scarlet Chains, you will notice four different functions; Compound, Roll Over, Claim Rewards and Pay Upkeep.

Every single day, you can choose ONE of the four functions, so make your choice wisely.

Newtons Third Law states that for every action, there is an opposite and equal reaction. Scarlet Chains Law states that for every action you take, it will effect every other day you have left in your Chains Upkeep Cycle, so choose your actions wisely.

To help you make better use of your tools, I will break the functions down below:

Compound

Use this function to Compound your Chains, or in other words, rather than claim your rewards, use those rewards to create a new Chain and increase your passive income.

• You can use your unclaimed rewards ($SCAR) to create chains without having to pay Claim Tax (15%) first.
• You can compound to create more than 1 new Red Chain at once.
• You can use rewards from any Chain (i.e Red, Platinum or Black) to create new Red Chains, but you CAN NOT merge compound (i.e combine Red and Platinum rewards together).
• You can combine your unclaimed rewards with $SCAR you have in your wallet to compound and create new Chains.
• If you Compound (or Roll Over) 1 or 2 times each cycle (7 days), you can lower your Darkness Upkeep.

Roll Over

Use this function to Roll Over your rewards. This will cost the equivalent of 5% of what the relevant Chain has unclaimed at that time. For example, if you have 5 Red Chains, and they all have 0.2 unclaimed rewards each, this equals to 1 unclaimed $SCAR in total. Therefore, if you use the rollover function, this will cost 0.05 $SCAR (5% of 1 $SCAR).

• This is used to simulate the compound function in the sense that it counts towards your Darkness Upkeep actions that lower your Upkeep fee when you go to pay this.
• You can only Roll Over all of an individual Chain type (i.e Red, Platinum or Black) at one time. (i.e If you want to Roll Over your Red Chains, you need to Roll Over all of them, not just one at a time).

Claim Rewards

Use this function to Claim your unclaimed rewards ($SCAR) from your Chains.

• When V2 rolls out, you will only be able to Claim all of an individual Chain type (i.e Red, Platinum or Black) at one time. (i.e If you want to Claim your Red Chains, you need to Claim all of them, not just one at a time).

Pay Upkeep

Use this function to pay your Darkness Upkeep. If a Chain falls into Darkness (i.e you don’t pay Darkness Upkeep on time) the Chain no longer produces rewards. Once you pay your Darkness Upkeep the Chain will begin producing rewards again.

• Darkness Upkeep can be paid at any time, however, if you pay your Darkness Upkeep early, it will be at a pro-rata.
• Once you pay your Darkness Upkeep, the Upkeep timer resets.

To be clear, you can only do one function per 24 hours.

Scarlet Chains V2

Although the term V2 has been thrown around, I want you to think of this as more of an upgrade to the protocol in the name of sustainability. As we got closer to the release of Scarlet Chains, the architecture for V2 was designed by the almighty Leo (Indiana Gems), however, implementing these upgrades would have significantly delayed the launch of Scarlet Chains.

Before people thought of flying in the sky, they had to create the automobile first.

Here’s what’s coming in V2:

Upkeep Payments

Upkeep will now be paid in $USDT-R instead of $SCAR.

• I.e if $SCAR is $20, and your upkeep is usually 1 $SCAR, this will now be $20 USDT-R. If $SCAR is $60, and your upkeep is usually 1 $SCAR, this will now be $60 USDT-R. And so on…

Upkeep will now NOT be counting as 1 action, or in other words, if you just claimed, you don’t need to wait 24 hours to pay your upkeep.

Rollover Payments

Rollover will now be paid in $USDT-R instead of $SCAR also.

Chain Creation Costs

Rather than REDLC, it will now cost USDT-R to create new chains. This will be $15 USDT-R for all chains except Witching Hour (More on Witching Hour below).

You will also need to pay a % of the ROI you have received from the Chains you are burning to upgrade (e.g Burning Red Chains to create a Platinum).

This goes as follows:

ROI less than 50% = 0% of ROI from that Chain

ROI 50% to 100% = 2% of ROI from that Chain

ROI 100% to 150% = 4% of ROI from that Chain

ROI 150% or more = 6% of ROI from that Chain

This will be paid in USDT-R.

Link Enhancers Tradeable

Link Enhancers will become tradeable on Midnight Trades.

This includes the following;

• Redlight Link
• Jade Link
• Ruby Link
• Diamond Link

This does NOT include:

• Full Moon
• Dawns Solace
• Scarlet Nights

Action Timer Change

To make things easier, the action timer will be universally set to UTC 00:00

dApp Updates

There will be several dApp updates done, which you will see once we roll out V2.

Witching Hour

The Witching Hour is a brand new Chain which is a higher tier than Scarlet Chains Black.

The cost to create a Witching Hour is 2 Scarlet Chains Red, 2 Scarlet Chains Platinum and 2 Scarlet Chains Black (6 Chains in total).

In order for a Witching Hour to produce rewards, your wallet will need to hold a minimum of 30 Scarlet Chains Red, 10 Scarlet Chains Platinum and 5 Scarlet Chains Black. If you wallet falls below these requirements (due to upgrading Chains or going to ham in the Sacrificial Vaults), your Witching Hour will not produce rewards.

There is a max of 1 Witching Hour available per wallet, and only 25 are able to be active in total across the whole protocol. In other words, if the 25 Witching Hours are already active, you will need to wait until one becomes available…

You will need to reach Max Wallet before being able to purchase a Witching Hour.

Witching Hours produces 10 $SCAR and 5 $REDLC every 24 hours.

Witching Hours operate on a staggered upkeep cycle as follows:

• After 7 days (1 Cycle after creation) — 2 Scarlet Chains Red are required to be sacrificed to the upkeep Gods.
• After 14 days (2 Cycles after creation) — 1 Scarlet Chains Platinum is required to be sacrificed to the upkeep Gods.
• After 28 days (4 Cycles after creation) — 1 Scarlet Chains Black is required to be sacrificed to the upkeep Gods.

If you fail to pay upkeep on your Witching Hour within 72 Hours of it being due, it will self destruct and you will lose your Witching Hour.

Please note: Link Enhancers will not work on Witching Hour.

Shattering Chains

A Chain is only as strong as it’s weakest link, and over time, a Chain tends to weaken.

The same logic now applies to Scarlet Chains.

Rather than Scarlet Chains offering the same payout structure, it has now changed to the following:

If your ROI is anywhere between 0%-100% there is 0% Shattered Taxes on Claims (i.e nothing has changed).

If your ROI is anywhere between 100%-200% there is 30% Shattered Taxes on Claims (i.e rather than there just being a 15% Claim Tax, there is also a 30% Shattered Tax which is a total of 45%).

If your ROI is anywhere above 200% there is 60% Shattered Taxes on Claims (i.e rather than there just being a 15% Claim Tax, there is also a 60% Shattered Tax which is a total of 75%).

The ROI is backdated to the launch of Scarlet Chains. If you migrated into Scarlet Chains, the cost will be based off of what the Chains would have cost if you purchased them from scratch.

ROI Calculation is as follows:

Amount of $SCAR Claimed at time of Claim, minus claims tax/sales tax/shattered taxes.

i.e if you have a Chain that is at 0% ROI and Claim 1 $SCAR, this would equal 1 minus 0.15 (Claim Tax) minus 0.15 (Sales Tax) = 0.7 $SCAR towards ROI. In relation to ROI, the Sales Tax is calculated at the time of Claim so after the fact you can use your $SCAR how you wish (i.e Sell/Transfer/Create Chains/Compound).

Compounding does not count towards ROI, only claiming (and anything that is automatically claimed at the time of compounding). However, as there is no way too exclude this from calculations, any compounding done in V1 Scarlet Chains WILL count towards the ROI of that Chain.

For Chains created in V1 use the average cost of REDLC when it comes to working out ROI (As they needed REDLC to create, rather than USDT-R).

Witching Hours are immune to Shattered Taxes.

Please note: When you enter your chains in a Sacrificial Vault (Dawn or Dusk), the ROI% from the sacrificed chains gets added to the new Chain.

Once your ROI hits 400%, your Chains will stop producing rewards, however, all is not lost as your Chains start to shatter thanks to…

The Regeneration Vault

The Regeneration Vault is a new vault in the Scarlet Chains Eco-System. This can be used to regenerate your Shattered Chains into fresh Chains.

The way this works is as follows:

When you have 3 Chains of a single type (i.e Scarlet Chains Reds can only enter the Regeneration Vault with other Scarlet Chains Reds) that have hit 250% or more ROI, you can enter these into the Vault.

To enter the Regeneration Vault, you will need to pay an entry fee of 10 $USDT-R per chain entered ($30 in total).

Once you have entered the Vault, 2 of the 3 Chains will be sacrificed, which will in turn Regenerate the 1 remaining Chain, making it so that it is back to having 0% ROI when it comes to Shattered Taxes. The remaining Chains new ROI will be based on what the Chain would cost at that time. I.e if $SCAR is $60 at the time of regenerating, the ROI for the new chain will be based on this price point.

Changes to Sacrificial Vaults

Whenever you enter one of the Sacrifical Vaults (Dusk or Dawn), the newly created chain (if you receive a Chain rather than a Link Enhancer) will have the ROI of the highest Chain entered. For example, if you were to enter 3 RED Chains, one with 30% ROI, one with 50% ROI, and one with 90% ROI, the newly created chain will have 90% ROI from the get go.

There will also be a Sacrificial Tax for all chains entered into the Sacrificial Vaults.

Chains @ 50% — 100% ROI = 2% tax on claimed ROI
Chains @ 100% — 150% ROI = 4% tax on claimed ROI
Chains @ 150%+ ROI = 6% tax on claimed ROI

All Sacrificial Tax will be paid in USDT-R.

Chain Creation Tax

When upgrading your Chains (i.e from Red to Platinum or Platinum to Black. This does not apply to creating a Witching Hour), you will need to pay a Creation Tax.

Chains @ 50% — 100% ROI = 2% tax on claimed ROI
Chains @ 100% — 150% ROI = 4% tax on claimed ROI
Chains @ 150%+ ROI = 6% tax on claimed ROI

The Rising Floor

If you have read the Scarlet Chains Whitepaper, you would know that we have the ability to raise the floor price of $SCAR.

This is currently at $20, however, when Scarlet Chains V2 rolls out, the price of $SCAR will increase to $60.

Token Migration

Because we are raising the floor such a significant amount in one go, you will need to migrate your $SCAR to a new token. This will be done through a simple swap dApp and will be at a 3 to 1 ratio.

e.g 30 $SCAR v1 ($600 USDT-R worth) will swap to 10 $SCAR v2 ($600 USDT-R worth).

Any $SCAR that is unclaimed before migration will be also be lowered at a 3 to 1 Ratio in your unclaimed rewards.

This is to make sure that anyone who has been hoarding $SCAR token waiting for the rising floor to kick into place won’t be able to take advantage of the protocol.

I understand this may be a lot to take in, but as per usual please take the time to go through this as many times as you need to, and don’t be afraid to ask questions in our Discord or Telegram.

As you can see, there are quite a few changes going on! In order for us to be able to implement everything here and not have everyone migrate contracts across entirely, we will need to bring down the Scarlet Chains dApp for up to 72 hours. If you do not want to miss out on rewards during the downtime, please make sure you have paid your Upkeep beforehand. We will give you a heads up before taking the dApp down in our Discord Announcements.

Your Chains will still be generating rewards in this time.

Cheers!

Rory (RED)

Linktree (With links to our website, all socials plus more)

https://linktr.ee/RedlightFinance

Not only are we about to launch our revolutionary gasless Blockchain, Redlight Chain ($REDLC), but as promised, people that have invested into Redlight Node District will be migrating across to the all new and improved Scarlet Chains. PLEASE NOTE: Newcomers will be able to purchase $SCAR to create new Scarlet Chains from launch.

On top of this, you will be able to utilise our very own DEX - Dawn Swap, and NFT Marketplace - Midnight Trades.

In the middle of July we released the Whitepaper for Scarlet Chains, and I am sure you will be able to see why we kept it so tight under wraps until now!

There are a whole lot of moving parts, innovations and improvements with Scarlet Chains, but did you expect anything less?

In case you missed it, you can find the links to Scarlet Chains Whitepaper, and the Redlight Chain Whitepaper HERE.

The Sacrificial Vaults

Now that you have had time to digest the whitepaper, lets go through The Sacrificial Vaults.

We wanted to allow you all to not just enjoy passive income, but also for those that are adventurous to be able to take a bit of risk to potentially get rewarded.

Here’s a quick overview:

• There are two separate Sacrificial Vaults, named Dawn and Dusk.
• You will need to add 3 different NFTs (Whether they be Chains, or Links) to enter a Sacrificial Vault.
• Once you have entered your 3 NFTs into the Sacrificial Vault, these 3 NFTs will be burnt, and you will receive a new NFT in return.
• The new NFT may be of more value than the 3 NFTs you entered combined, or it may be worse. You need to risk it to get the biscuit.

Sacrificial Vault Dawn Outcomes

The following sacrificial combinations have the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum or 1 Scarlet Chains Black:

• 3 x Scarlet Chains Red
• 2 x Scarlet Chains Red + 1 x Scarlet Chains Platinum
• 1 x Scarlet Chains Red + 2 x Scarlet Chains Platinum
• 3 x Scarlet Chains Platinum

The following sacrificial combinations have the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum, 1 Scarlet Chains Black or 1 Scarlet Nights:

• 2 x Scarlet Chains Red + 1 x Scarlet Chains Black
• 1 x Scarlet Chains Red + 2 x Scarlet Chains Black
• 1 x Scarlet Chains Red + 1 x Scarlet Chains Platinum + 1 x Scarlet Chains Black
• 2 x Scarlet Chains Platinum + 1 x Scarlet Chains Black
• 1 x Scarlet Chains Platinum + 2 x Scarlet Chains Black
• 3 x Scarlet Chains Black

Every one of these combinations has a different % chance for each individual outcome. For example, if you were to enter 3 x Scarlet Chains Black into the vault, this would have a higher chance of returning a Scarlet Nights compared to entering 2 x Scarlet Chains Red + 1 x Scarlet Chains Black. The same applies to the Dusk Vault combinations below…

Sacrificial Vault Dusk Outcomes

The Key difference with the Dusk Vault is that for most of the combinations you enter the Vault, there is a 5% chance of your reward being stolen. When your NFT is stolen, this goes into a separate pool, which gets disbursed randomly to anyone who owns a Scarlet Nights NFT. If only one person owns a Scarlet Nights NFT, this means they will receive every single one of the stolen NFTs. If 10 people own Scarlet Nights NFTs, they will each have a 1/10 (10%) chance of receiving the next NFT which is stolen and sent to the pool.

The following sacrificial combinations have the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum, 1 Scarlet Chains Black, 1 Jade Link, 1 Ruby Link OR have your reward stolen:

• 3 x Scarlet Chains Red
• 2 x Scarlet Chains Red + 1 x Scarlet Chains Platinum

The following sacrificial combinations have the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum, 1 Scarlet Chains Black, 1 Jade Link, 1 Ruby Link, 1 Scarlet Nights OR have your reward stolen:

• 1 x Scarlet Chains Red + 2 x Scarlet Chains Platinum
• 2 x Scarlet Chains Red + 1 x Scarlet Chains Black

The following sacrificial combinations have the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum, 1 Scarlet Chains Black, 1 Jade Link, 1 Ruby Link, 1 Diamond Link, 1 Scarlet Nights OR have your reward stolen:

• 1 x Scarlet Chains Red + 2 x Scarlet Chains Black
• 1 x Scarlet Chains Red + 1 x Scarlet Chains Platinum + 1 x Scarlet Chains Black
• 3 x Scarlet Chains Platinum
• 2 x Scarlet Chains Platinum + 1 x Scarlet Chains Black
• 1 x Scarlet Chains Platinum + 2 x Scarlet Chains Black

The following sacrificial combination has the potential to reward you with either 1 Scarlet Chains Red, 1 Scarlet Chains Platinum, 1 Scarlet Chains Black, 1 Jade Link, 1 Ruby Link, 1 Diamond Link, 1 Redlight Link or 1 Scarlet Nights. This DOES NOT have a chance of having your reward stolen:

• 3 x Scarlet Chains Black

The following sacrificial combination has the potential to reward you with either 1 Scarlet Chains Black, 1 Diamond Link, 1 Redlight Link or 1 Scarlet Nights. This combination DOES NOT have a chance of having your reward stolen:

• 1 x Jade Link + 1 x Ruby Link + 1 x Diamond Link

The following sacrificial combination has the potential to reward you with either 1 Scarlet Chains Black, 1 Diamond Link, 1 Redlight Link 1 Scarlet Nights, 1 Full Moon or 1 Dawns Solace. This combination DOES NOT have a chance of having your reward stolen:

• 1 x Ruby Link + 1 x Diamond Link + 1 x Scarlet Nights

Time for a breather

I understand that this is a lot to take in, hence why we decided against adding all of this to the whitepaper.

Once we launch it will all make a lot more sense as you will be able to have a look around the dApp yourself to get a good feel for it all.

We won’t be releasing the percentages to the public, but also want everyone to note that we can adjust these percentages as we go. For example we could increase the percentage for higher valued NFTs for a weekend and then lower the percentages back to default.

Enter the vaults at your own risk, and I would recommend to refer back to this medium article before entering the vaults to determine what your potential outcome is.

See you on the other side.

RED

Socials

Website: https://redlight.finance

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/Redlightfinance

Twitter: https://twitter.com/Redlight

Before we get into where everything is at so far, we need to address some things.

Rewards Pool

Due to the success of the Blockchain Incentive Program (BIP), at time of writing there has been over 35% (700,000) of the total supply of $PLAYMATES locked away.

What this means for those that have entered the BIP — you have secured your position in our upcoming ICO (depending on what BIP Tier you are up to), and also will get the relative migration bonus when the time comes. Congratulations!

However, what this means for everyone — with over 35% of the supply effectively have been “burnt” (locked in the BIP), the Rewards Pool has of course taken a heavy hit, and we aren’t expecting it to last much longer!

In the background, we have done the following to prolong this so far:

• With some of the liquidity being unlocked, we have been able to pull this out and transfer the $PLAYMATES portion into the reward pool. The $AVAX portion has been held on to to assist with migration when the time comes (as explained in our discord
• The 4 Founders (Leo, Alex, Bailey and myself) transferred what tokens we had left over to the reward pool also. At the start of the project, we each had 15750 available (with the rest being locked), and agreed to only use 750. This means rather than us having 10% of the supply as outlined in our whitepaper, we realistically only used 0.15% between us (Not including the 2 Original Devs that have left the project). The 60,000 we sent to the reward pool was only a Band-Aid of course, but we figured every little bit helps, and better you guys being able to make use of them than lining our pockets.

Long story short, the reward pool will run out shortly (possibly by the time you read this), meaning you will no longer be able to compound or claim as you please. The reward pool will be topped up each time someone sells, claims, creates nodes etc as per usual, but I would advise to check the reward pool before claiming or compounding to make sure there is enough in there at the time to be safe. You can do this by having a look at our Rewards Pool Bot on Discord, or looking at Snowtrace HERE.

When reward pool dries up you can still buy, sell and build with $PLAYMATES just not use $PLAYMATES in your pending rewards.

In the spirit of transparency, we did not think this phase of Redlight Finance would get this big this quickly, so I want to take this time to thank each and every one of you for being a part of the journey, and I know we can’t give dates, but I can promise you migration to our new Blockchain and Scarlet Chains is coming soon!

When RND becomes Scarlet Chains

In our last Medium article, we outlined the Migration Scale when users would be able to bridge their RND assets across to Scarlet Chains to get things kicked off.

Since then, the price of $PLAYMATES has dropped drastically, and given the potential that Scarlet Chains has, this means someone could create a decent sized migration wallet at a heavily discounted rate when we do migrate.

Due to this, we have decided to make the Migration Scale dynamic. Yes, this likely means that your migration will not be as appealing as what you first saw, but we believe this is the fairest way to make sure our long term supporters (i.e people that bought into RND at a much higher price tag) will receive a fairer migration than say someone that bought in when $PLAYMATES was less than $1.

Once we have our first set of updated Migration Scale figures, we will release these in a discord, and update them weekly in the build up to migration.

Basically, if the price of $PLAYMATES is lower, the migration will be less attractive, and vice-versa if the price (barrier to entry) goes higher.

Let’s Stress Test the Test Net

Our Testnet of RLC has been a success so far, thanks to those of you who committed to signing NDA’s to assist us with this early testing phase.

This means that we are almost ready to deploy the Blockchain, however we will be holding off until Scarlet Chains is complete to make sure that everyone who has been a part of Redlight Node District will be taken care of first and foremost.

We are happy to announce that we will open the Testnet for anyone to try out. You can add the following details to your Metamask to have a play around.

This may run a little slow depending on how many users are active as we only have 4 Validators deployed for the test net.

To avoid any major issues and to ensure we capitalize on testing there will be phases of the total allowed users on the RLC Testnet at any given time (10,000 to start).

(Please note: this will not work on Metamask Mobile at this stage due to the RPC not having a HTTPS certificate yet).

Network Name: RLC Testnet
New RPC URL: http://67.219.103.0:8545/
Chain ID: 8457
Currency Symbol: RLC
Block Explorer URL: https://testnet.redlightscan.finance/

Here is the faucet details:

https://faucet.redlightscan.finance/

If you find any issues small or large, please fill out the following google form. If it is deemed to actually be a bug that you will paid a finders fee.

BUG BOUNTY GOOGLE FORM

Sneak Peaks

To showcase to the doubters, here’s a few Sneak Peaks of what’s coming. Please note, this is all still in development, but you get the idea.

DEX

NFT Marketplace

Scarlet Chains

Scarlet Chains Sacrificial Vaults

Expos

If you are active in our community, you would be aware that unfortunately due to Visa issues, we weren’t able to get our team into Japan for the Blockchain Expo in May. This was a bit of a setback for us, as you all know the only chance for our team to be all in the same room is at an Expo due to being from opposite sides of the world.

Here's a quick rundown of our upcoming expos we still have booked for this year:

• Singapore - July
• Silicon Valley - October
• London - December

Quick Recap

• The Reward Pool is running dry. You will still be able to buy/sell $PLAYMATES.
• Migration from RND to Scarlet Chains will be changing as we go depending on price of $PLAYMATES.
• The Testnet is of our Blockchain is live and ready for action.
• Currently in development other than the Blockchain — DEX, NFT Marketplace, Scarlet Chains.
• We couldn’t go to the Japan Expo in May, but still have 3 upcoming for the remainder of the year.

Thanks for taking the time to read this, we can’t wait until we can release more information about our up coming projects a little closer to the launch!

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Twitter: https://twitter.com/Redlight

Redlight Coin

Have you ever gone to mint an NFT, but upon going to do so, the gas is too high?

What about purchasing a token, watching its growth, and before you decide to take profit it starts heading south? You think to yourself, “I should just sell now and cut my losses, be safe for once.” only to see the gas cost is almost the same as your initial investment?

Unless you’ve been living under a rock, you have no excuses to not know about our upcoming gasless blockchain… but hey, I’m not one to judge your living conditions. Here’s a quick overview of what Redlight Coin (RLC) is going to entail:

• RLC is gasless. In other words, you don’t have to pay gas fees to make a transaction (i.e buy, sell, send, mint etc).
• RLC is Ethereum Virtual Machine (EVM) compatible (i.e Smart Contracts can and will be integrated and usable).
• RLC is Multi Language (i.e it will be compatible with different coding languages, opening up it’s use case to more than just tokens, such as companies that use multiple daily transactions like hospitals, pharmaceuticals, retail etc)
• We currently have in development a DEX, Token/Project (Scarlet Chains) and NFT Marketplace.

That’s about all I can say without giving too much away at this stage, as I’m sure you can imagine we want to keep the ways we have been able to achieve this all close to our chest.

Alex has been developing this blockchain for around 6 years now, he just never had the funding or community to make his dream our reality until now, and I’m not about to ruin that for him!

We will be having an Initial Coin Offering (ICO) for RLC, which any investor in Redlight Node District (RND) related will have the opportunity to a tiered access to, and are already in talks with several Centralised Exchanges regarding listing.

Scarlet Chains

Scarlet Chains is our new and improved NaaS project.

When we created RND, we had the luxury of seeing what many different node projects did right, but more importantly, what they did wrong.

Scarlet Chains is born from the same concept, however we have an even bigger advantage after being behind the steering wheel of our own project and learning from our own mistakes.

Scarlet Chains will work similarly to RND, in the sense that their will be 3 tiers of nodes, that you need to trade up into (similar to trading your Mansions in to purchase a District). The higher tiered nodes will provide a higher return compared to the nodes that you traded in to purchase these.

The tiers will be as follows:

• Base Node: Scarlet Chains — Red
• Mid Tier : Scarlet Chains — Platinum
• Top Tier: Scarlet Chains — Black

Due to Intellectual Property concerns we won’t be able to go into too much detail about how this will work right now, but I can let you know we have fixed the following issues RND had:

• Our issues of having multi wallet low tier whales reaping all the rewards without paying their fair tax has been solved
• We have devised a way to keep the price of the coin relatively stable, regardless of sell or buy pressure, keeping your passive income just the way you want it
• What comes with a stable price, is a steady APR and predictable ROI
• We had the liquidity holding quite well with RND, even after a stream of sales, but this will be even more improved

Blockchain Incentive Program

Initially we set up the Blockchain Incentive Program (BIP) as a way for our loyal Redlight Node District (RND) investors to be able to migrate into RLC. However, as development has gone on, and Leo’s crazy mind has put together Scarlet Chains, it became clearer that the migration from RND into Scarlet Chains was a better solution.

As RLC is getting closer to completion, it makes more sense for us to completely migrate RND over into our own blockchain which renders the original point outlined in our discord of the BIP NFT’s benefiting both RND and RLC redundant.

Therefore, anyone that is invested in anyway into RND can consider themselves having a presale advantage into Scarlet Chains.

The BIP is still active and will give you bonuses with migration (I will outline this in more detail in the next section), and any of the previous mentioned criteria requirements are still the same, however, the BIP NFT tiers are going to give you different allocations into the ICO for RLC.

Here’s a reminder of the BIP requirements as outlined in our discord:

• 1% increase for every 100 Playmates ‘staked’ ($PLAYMATES staked in the Trust count towards this but not towards the NFTs below)
• Snap Shot Buys for every 100$ purchased = 0.10% increase (started March 12)
• Mansion Compounding / Creation = 0.10% increase for each one. (Started March 12)
• For every District made = 2% Increase (started March 12)
• Cities Creation = 10% for each city created (started March 12)
• Everything said above can stack up to a maximum of a 500% increase.
• Only the $PLAYMATES ‘staked’ will earn the percentage bonus, on the day of migration if $PLAYMATES were not ‘staked’ they will not receive their percentage increase (for the staking bonus)
• There are 10 tiers for this NFT. Users will ‘unlock’ these NFTs just by ‘staking’ playmates into our Smart Contract (under development). Once they reach a certain amount staked, they will be able to claim the next available NFT. On tier 10 and every tier afterwards, users must have the previous tier NFT to “trade in” in order to receive the next tier. In other words, if you reach the requirements for tier 9, you will need to trade in your tier 10 NFT to get the tier 9 one.

Below are the tiers, requirements, and corresponding ICO Allocations:

Anyone who holds one of the 200 VIP Club NFTs will be automatically at Tier 1, meaning you will have max allocation for the ICO.

Migration

When everything is ready to go for migration from RND into Scarlet Chains, here’s a teaser of what’s coming.

You know we love our game theory over at Redlight Finance, so we figured we would throw some game theory into the migration for you all as well.

Obviously we will release info on what each chain actually produces before migration, but here’s a little taste of what to expect.

As you can see, $PLAYMATES will be able to be migrated, however the benefit of doing so will be a hell of a lot less than the migration of nodes.

The BIP will still give you an advantage to help boost whatever $PLAYMATES you do have and I will give you an example below.

Lets say during the BIP you made 2 Cities, 5 Districts, and purchased $500 of $PLAYMATES. You also have 3000 $PLAYMATES which you have staked 1000 into the Redlight Trust, 1000 into the BIP Staking smart contract, and have 1000 sitting in your wallet.

Therefore, rather than you just having 3000 $PLAYMATES converting into 30 Scarlet Tokens, you would end up with 41.65, equalling a 38.83% overall increase, whilst also getting the rewards from the Cities and Districts made, plus the MIM rewards from the Redlight Trust.

To recap, the BIP will give you access to the ICO for RLC at different tiers depending on what you have staked, and will also give you a bonus in terms of RND migrating into Scarlet Chains.

We hope to see you all at our live AMA on our Discord at 2pm UTC April 18th where we will go through all of this and a likely a bit of alpha as per usual.

Before I sign off, just a reminder to everyone we will be in Tokyo for the NexTech Week Blockchain expo on May 11–13 showcasing everything we have been working hard on for the world to see!

Peace!

RED

Socials

Discord: https://discord.gg/redlightfinance

Telegram: https://t.me/Redlightfinance

Twitter: https://twitter.com/Redlight

Here’s a brief overview of some of the key updates since then…

• Kyle has come on board as our Community Manager and he continues to exceed our expectations. Keep up the awesome work!
• Alex continued to drop too many alphas in AMAs, and also now has his Twitter Verified!
• Indy still isn’t wearing pants
• Shero got our Twitter Verified!
• We have hired our CFO, Joe (AKA Trader Joe). Thanks to Joe Redlight Finance is now an internationally registered business!
• Districts are now fully tradeable on NFTrade.com, which means Red’s Raffles will be up and runnin’ in no time.
• Speaking of Districts, District rewards have increased from 1 $PLAYMATES/day to 5 and Cities will be 10 $PLAYMATES/day once Cities are released
• Partnership with Shumo, along with our partnered Liquidity Lending
• We also announced our partnership with Nitro Network, and purchased a healthy amount of their NFT Miners (with all profits going to the Redlight Trust once live)
• The team had a lot of success at the Dubai Crypto Expo, bringing in a lot of new investors, and just as importantly, new potential partnerships.
• We let the cat out of the bag that we will be attending the NexTech Week Tokyo Blockchain Expo in May, where we will be letting the world know more about our upcoming gasless Blockchain!

On to the updates

As we have said since day one, sustainability has always been at the forefront of our project. Passive income is great, no-one's going to argue that, but long term passive income is even better. This is why we have introduced Mansion Tax.

Mansion Tax

We began development on Mansion Tax not long after we launched, and anyone that can read smart contracts would be able to see this was implemented into one of our smart contracts several weeks ago, just never activated (set at 0%).

The main reasoning behind this was to counter multi wallet holders. It became very clear, both through the blockchain and through people outwardly admitting it, that there a lot of unethical whales invested in RND. Some have many (I’m talking upwards of 30) small wallets set at a low tier, basically to avoid paying the fair whale tax that they should be.

Now, if someone were to have several wallets, and leaving it at a certain tier (i.e 9 or 19 Mansions), they obviously won’t be compounding. So what else is there to do with their rewards?

Sell.

If you look at the chart on DEX SCREENER you can see a lot of big buys, sure, but an extraordinary amount of small sells, which adds up (hence the sales pressure).

When there is a lot of sell pressure, the price tends to go down, and would you rather pay a small tax on a token that's worth very little, or a higher tax on a token that actually has a solid price?

I hope this helps you understand the need for Mansion Tax.

Heres how Mansion Tax works

Mansion Tax is 50%.

Mansion Tax gets applied at the time of claiming from your Mansions (like Claim Tax).

Therefore, if someone is claiming their rewards then selling, the sales flow goes as follows:

Claim Tax and Mansion Tax is paid at the time of claiming, then Sales Tax and Whale Tax are combined at the time of sale.

i.e If you own 1 Mansion and waited 24 hours so that you have 1 $PLAYMATES as an unclaimed reward, the claim and sales flow would look like this:

CLAIMING: 1-(15% +50%)=0.35 $PLAYMATES in wallet

SELLING: 0.35-(10%+2.5%)= 0.30625 $PLAYMATES paid for after taxes.

It’s important to note, that this is called Mansion Tax, not Node Tax… so this is only applied to Mansions, not Districts or Cities.

Heres how Manson Tax would look for a 1 Mansion Wallet and for a 200 Mansion Wallet:

Therefore, a 1 Mansion wallet would have a ROI of 1.531% Daily, or just over 65 days if the price remained the same (If price goes up, ROI would be quicker and vice versa if price was to go down). As the amount of Mansions increase, the ROI Varies due to the increase in Mansion Cost and Whale Tax, how many Districts they have, and also whether or not the user has compounded rewards to get to that point.

Other factors to mention:

• Compounding to create more Mansions is still Tax Free
• Districts still have the 1.5% increase in rewards for all nodes, and 1% decrease in Claim Tax per District
• Our VIP Club Node NFT’s still have a 25% increase in rewards for all nodes

There will be ways to lower Mansion Tax from 50% all the way down to 20%. The first way to lower Mansion Tax will be through Mini-Nodes.

Mini Nodes are still in development, but will allow investors to not only lower the Mansion Tax, but also help feed the sustainability of $PLAYMATES itself.

The second way will be through the Blockchain Incentive Program (BIP) NFTs.

The BIP NFTs will be earned by staking playmates in the BIP staking program. Once you have staked the proper amount as indicated on the progress bar, you will unlock the ability to mint a BIP NFT for only the cost of gas.

BIP NFTs have functions on RND, and will be migratable and usable on the upcoming blockchain. BIP NFTs will increase node reward production by their given percentage, and also on RND will decrease your Mansion Tax.

Speaking of Blockchain..

Development on our very own Blockchain is well and truly underway! This will be released in 2 stages, the first having very minimal gas, and the 2nd stage having 0 gas… Yes we are talking about a gasless blockchain in the defi space.

Our Blockchain will be multi-language supported, compatible with Metamask, and of course allow smart contracts.

Because we will be transitioning from Avalanche to our own blockchain, we have also started work on our own first project, which will be another passive income protocol, called Scarlet Chains.

Once we are closer to releasing both V1 of our Blockchain and Scarlet Chains, we will release more info on how this all works in more detail.

Until next time!

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/RLNodeDistrict

Twitter: https://twitter.com/RLNodeDistrict

Without further ado, I present to you, the Redlight Trust.

As with anything we do, there tends to be a few moving parts going on, all in the name of sustainability of course! Please take the time to go through this article where I will be outlining how this works.

I hope you have your $PLAYMATES ready, because Alex’s BBQ is finally here!

What is the Redlight Trust?

The Redlight Trust is very similar to what other projects call a Treasury. Essentially you will be able to stake your $PLAYMATES and earn rewards from our Redlight Trust investments.

Investors will get a percentage of the profits, based on how much of a percentage of the total $PLAYMATES pool they have staked. For example, if there’s 10,000 $PLAYMATES in total staked, and one person is staking 1,000 of these, they would be eligible for 10% of the total profits in the Vault.

Minimum Stake : 1 $PLAYMATES

Maximum Stake : 2000 $PLAYMATES

What is the Vault?

The Vault is the wallet that any profits gained from Redlight Trust’s Investments will be deposited into. This is where you will be able to see how much profit there is in total. The profits will be paid out in $MIM (Magic Internet Money AKA a stable coin that is pegged to the US Dollar).

Cycles

Each Redlight Trust Cycle will last for 10 days.

Taxes

• Staking Entry fee of 5% of your $PLAYMATES that you Stake
• There will be a scaling Cycle Tax based on how long you have your $PLAYMATES staked for before unstaking.

- Unstaking after 1 cycle = 75% Cycle Tax on $PLAYMATES

- Unstaking after 2 cycles = 50% Cycle Tax on $PLAYMATES

- Unstaking after 3 cycles = 40% Cycle Tax on $PLAYMATES

- Unstaking after 4 cycles = 30% Cycle Tax on $PLAYMATES

- Unstaking after 5 cycles = 20% Cycle Tax on $PLAYMATES

- Unstaking anytime after 6 cycles = 10% Cycle Tax on $PLAYMATES

For example, if you stake 10 $PLAYMATES, 5% (or 0.5 $PLAYMATES) will be taxed. You will then have 9.5 $PLAYMATES staked. If you were to unstake after the 1st Cycle, you would get a 75% Tax. 75% of 9.5 is 7.125. Therefore you would end up with 2.375 $PLAYMATES back from the original 10 $PLAYMATES.

On the other end of the scale, if you were to unstake after 6 Cycles, you would only have a 10% Cycle Tax. 10% of 9.5 is 0.95. Therefore you would end up with 8.55 $PLAYMATES back from the original 10 $PLAYMATES. Don’t forget, this is on top of the $MIM rewards you have earnt during your staking cycles.

• There will not be any tax on claiming rewards ($MIM) from the Redlight Trust. When you claim your rewards (at the end of the current cycle) you will need to re opt into the next cycle.
• All taxes will be distributed as 50% into the Reward Pool, and 50% into the Liquidity Pool.

Sustainability

As per usual we have sustainability at the forefront of our model. This is why there is such a high Cycle Tax in the early stages, so that whales are detracted from Staking for 1 cycle, reaping the rewards and then bailing on the Redlight Trust. They can still do this of course, but they would be paying a lot of taxes to do so!

Thanks for reading, if you have any questions head on through to the Discord!

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/RLNodeDistrict

Twitter: https://twitter.com/RLNodeDistrict

First and foremost, I just wanted to say thank you to each and every one of you that held strong with us through the speed bumps during our launch.

The support from our community has been nothing short of amazing, and it’s been exciting to watch the charts reflect just how much you all truly believe in us. Thank you!

This is just the beginning

As you may have seen on our twitter or announcements on discord, we have onboarded 3 developers that are working round the clock to rollout the following:

• Dapp Overhaul
• Contract Fixes
• RPC Endpoints
• Treasury Vault Staking
• “Mini” Nodes
• Future Phases of our roadmap

They will be providing all the required contracts and changes but will be submitting all the changes to Alex our CTO for the review and the final implementation. All 3 of these devs are contracted and directly reporting to Alex our CTO and the CEO, Leo.

Here’s what we have fixed so far

• Rewards now showing in real time, and claimable in real time
• Updated the dApp with the following:
  - Shows your Mansion/District names
  - Shows the current cost per Mansion based on your current tier
  - Dynamic pay out view (i.e how many $PLAYMATES you have claimed from each Mansion, and how many $PLAYMATES are currently claimable for each Mansion).
• Fixed the Compounding of Mansions. This now works correctly and we also made it so you can use your $PLAYMATES from your Wallet to top up your unclaimed rewards when Compounding.

Here’s what’s coming!

District Trading

We are currently working on a fix to get the Districts trading and working as they should be, which brings me to my next point…

In dApp NFT Marketplace

We are creating our own in house NFT Marketplace. Yes, you read that correctly.

Redlight Swap

Due to our Tokenomics being different from user to user dependant on how their wallet is set up, rather than having people ask “What should my slippage be?” over and over, we figured we would make everyone's life easier and implement an in house Swap.

Redlight Trust

It’s like a Treasury, with a Redlight twist. This will also be within our dApp, and will allow you to stake your $PLAYMATES to earn returns from our Redlight Trust investments. We will go more into the mechanics of this in another article, but you’re going to be pleasantly surprised!

Red’s Raffles

Each of the core team donated a portion of their team tokens to go into a wallet which will be dedicated to Red’s Raffles. The aim here is to generate enough rewards to be able able to consistently giveaway Districts. Whether its in the Redlight Mansion channel on our discord, giving good ol’ Shero a few for some twitter giveaways, or even just giving it to someone I notice in our community being active and helpful.

That’s all for now, there are lives to be changed.

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/RLNodeDistrict

Twitter: https://twitter.com/RLNodeDistrict

As we are getting very near to our tentative launch date of the 29th of January, I figured it would be a good time to go through and make some things as clear as we can!

“How do I know how many Playmates my Mansion will cost?”

If I received a playmate for every time I read this question in our discord, I would be able to make a lot of Mansions!

So, to make things clearer, we are going to be changing from this;

• 10–20 Mansions: 25 Playmates
• 20–40 Mansions: 30 Playmates
• 40–80 Mansions: 35 Playmates
• 80–100 Mansions: 40 Playmates
• 100+ Mansions: 45 Playmates

Max mansion creation per transaction: 20

To this;

• 1–10 Mansions: 20 Playmates
• 11–20 Mansions: 25 Playmates
• 21–40 Mansions: 30 Playmates
• 41–80 Mansions: 35 Playmates
• 81–100 Mansions: 40 Playmates
• 101+ Mansions: 45 Playmates

Max mansion creation per transaction: 20

So for example if you are currently at 19 mansions, and you purchase 1 more mansion, this will cost you 25 Playmates. If you are at 20 Mansions, and you decide to buy 1 more mansion, this will cost you 30 Playmates. Keep in mind that the cost of the Mansions you create will be the same for the entire amount, dependent on the tier you are in at the time of creation.

How much tax do I pay, and when?

There has been a little bit of confusion around taxes, so I’m going to break it down for you here nice and clear.

Keep It Simple, Stupid 😘

• 10% Sell Tax — this applies on any and all sales of $PLAYMATES
• 15% Claim Tax — this applies every time you claim your $PLAYMATES from your Node/Nodes into your wallet
• 2.5%-25% Whale Tax — this is applied at the time of sale (i.e added to the sale tax). The amount varies based on the amount of Mansions you own at the time of sale as seen in our original Medium Article.
• 40% Transfer Tax — this applies to any and all transfers of $PLAYMATES from one wallet to another.

You may be thinking, damn RED, that’s a lot of tax! And that’s why there are several ways to offset these taxes…

• The first way is to have 1 of the 200 VIP CLUB NODE NFTs, which give a 25% increase in production to all of your nodes!
• The second is to renovate your Mansions into Districts! Each district gives a 1.5% increase to all of your nodes’ production, and also a 1% decrease in your claim tax. Remember, you can have a max of 10 of these bad boys in your wallet, and yes, the benefits stack.
• The third, and probably most overlooked option, is to compound your unclaimed rewards into creating new Mansions. Essentially, you can compound your unclaimed rewards, to create new mansions, therefore avoiding the claim tax… but shhh, don’t tell Alex. You will be able to select the amount of Mansions you want to create at the time.

For Example, let’s say you have 70 unclaimed $PLAYMATES, and your current mansion cost tier is 30 $PLAYMATES, you essentially have 4 options as follows….

1 Do nothing! Leave these $PLAYMATES unclaimed, and the next day you will have even more.

2 Claim them! If you claimed these rewards, you would pay your 15% claim tax, meaning you would receive 59.5 $PLAYMATES into your wallet (Disregarding District benefits if any).

3 Renovate into 1 more Mansion! You could use 30 of these unclaimed $PLAYMATES to compound into 1 more Mansion, and then have the remaining 40 $PLAYMATES paid out into your wallet, meaning you would receive 34 $PLAYMATES into your wallet after claim tax (Disregarding District benefits if any).

4 Renovate into 2 more Mansions! You could use 60 of these unclaimed $PLAYMATES to compound into 2 more Mansions, and then have the remaining 10 $PLAYMATES paid out into your wallet, meaning you would receive 8.5 $PLAYMATES into your wallet after claim tax (Disregarding District benefits if any).

An important piece of information I also wanted to make clear, is that Mansions WILL NOT be tradeable, however Districts will be. I’ll let you all work out what to do with that information amongst yourselves!

Last, but not least…

We have loved seeing everyone in our game-theory discord channel chatting with one another trying to work out different strategies, and genuinely working together! Y’all make me feel like a proud parent, keep it up!

To add to this, our CTO, Alex, has decided to create a Minnow wallet and use this show the world how you don’t actually need a massive amount of capital to make the Redlight Node District work for you. Alex will be buying $100 worth of $PLAYMATES at launch, with the aim of going from a $100 initial investment, into $100/day of passive income. This wallet address will be posted in our Discord at the time, so anyone and everyone can follow along. Unlike a real life playmate, the blockchain can’t lie to you!

Alex is a bit of a maniac when it comes to mathematics, so if you haven’t worked out your own strategy just yet, this could be a good wallet to follow! Who knows, you may also learn a thing or two along the way!

I want to take this opportunity to thank each and everyone of you reading this. Your support has been overwhelming and everyone in the core team are honestly hyped on how awesome our community is already, so thank you!

Until next time guys,

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/RLNodeDistrict

Twitter: https://twitter.com/RLNodeDistrict