1.2 What Red Horse [RH] Is

A tokenized membership layer designed for verifiable participation and P2E-compatible incentives

Red Horse (RH) is the native token of an on-chain membership system. Its primary purpose is to enable membership activation through locking and to support a rules-based rewards program that recognizes long-term participation.

At the protocol level, RH is built around a single, easy-to-audit primitive:

• Lock RH → earn a membership tier → receive tier-based privileges and rewards.

This design deliberately keeps RH’s core utility independent of any one product surface. RH does not require a proprietary platform to be live for membership to function; eligibility, tier status, and reward weighting can be derived directly from on-chain state under transparent rules. As the ecosystem evolves, additional programs and integrations can be layered on without changing the fundamental membership logic.

What RH Enables

RH enables communities to coordinate around verifiable commitment. In practice, RH supports:

• Membership Access: Users lock RH to qualify for tiers that may grant access to ecosystem programs, early initiatives, and governance participation.

• Priority & Weighting: Tiers can serve as a neutral weighting mechanism—for example, higher tiers may receive higher reward weights or priority access where appropriate.

• Incentive Alignment: Rewards are distributed under an explicit program so that long-term commitment is recognized consistently and transparently.

• Game-ready Incentives (P2E-compatible): RH can support P2E-style seasonal campaigns where rewards are allocated based on predefined rules and verifiable participation criteria, with tiers used to manage eligibility and weighting.

What RH Is Not

To avoid ambiguity and misinterpretation, RH is explicitly not designed as:

• A gambling or betting instrument. RH does not represent wagers, pooled betting, odds, or games of chance. Any ecosystem programs built around RH are intended to reward participation and contribution, not to facilitate wagering behavior.

• A promise of profit or guaranteed returns. RH does not represent equity, debt, or a claim on revenues. Rewards (if any) follow predefined program rules and are not guaranteed.

• A proxy for a centralized operator. Membership and rewards logic is intended to be enforced by smart contracts and publicly stated rules rather than discretionary decisions.

Design Principles

RH follows these principles throughout the system design:

• Clarity over complexity: Membership rules must be easy to understand and hard to misinterpret.

• Rules over discretion: Tier qualification and reward mechanics should be deterministic wherever possible.

• Transparency by default: Key parameters, distributions, and treasury movements should be observable on-chain.

• Safety-first operations: Administrative capabilities should be minimized, documented, and secured through robust operational controls.

In the following sections, this whitepaper details how membership tiers work, how locking rules are applied, how rewards are calculated and distributed, and how the RH token is issued and governed within the broader protocol architecture.