3.1 Token Utility

The role of RH in membership, incentives, and ecosystem coordination

RH is the native token that powers the Red Horse protocol. RH’s utilities are designed to be simple, enforceable, and composable: membership is activated through locking, incentives are distributed through a rules-based program, and additional ecosystem programs can reference the same membership state without changing the core logic.

RH is not intended to function as a promise of profit, a share in revenues, or a guaranteed return instrument. Its role is to coordinate participation through transparent, on-chain mechanisms.

Primary Utilities

1) Membership Activation (Locking)

RH is used to activate membership by locking into the membership contract. Locking creates a verifiable on-chain record of commitment and determines the user’s membership tier.

• Action: Lock RH

• Effect: Earn a membership tier and associated eligibility/weighting

2) Rewards Program Participation

RH supports a rules-based rewards program that recognizes sustained participation. Membership tiers can influence reward weighting and program eligibility, as defined by program rules.

• Action: Maintain eligible membership state (as defined per program)

• Effect: Receive rewards under predefined budgets and transparent criteria

3) Program Access and Priority

Membership tiers derived from locked RH may grant access or priority to ecosystem initiatives, including community campaigns, partner programs, and time-bound seasonal initiatives.

• Action: Hold an eligible tier at snapshot checkpoints

• Effect: Gain access, priority, or enhanced participation terms where applicable

Optional / Future Utilities (Ecosystem Expansion)

As RH’s ecosystem evolves, additional utilities may be introduced without changing the core membership primitive:

4) P2E-Compatible Campaigns (Use Case)

If a game-oriented program is introduced (e.g., a P2E-style seasonal campaign), RH membership tiers can be used to manage eligibility and weighting, while rewards are allocated based on verifiable participation criteria under predefined rules.

This use case is additive: RH’s membership and rewards system is designed to function independently, and application-level programs may reference it as an integration layer.

5) Governance Participation (Phased)

RH may be used to support governance processes (proposal, discussion, voting) within the defined governance scope. Governance is intended to evolve in phases and should focus on parameters explicitly disclosed in this whitepaper.

6) Ecosystem Redemption (Partner Benefits) (Phased)

Subject to ecosystem development, RH membership may later unlock partner benefits or redemption programs. Any such programs should be disclosed transparently and introduced with clear eligibility and integrity safeguards.

Utility Principles

To keep RH’s role credible and sustainable:

• Utility is rule-based: Eligibility and outcomes depend on publicly stated rules and on-chain state.

• Utility is not a guarantee: Rewards and benefits are program-defined and not guaranteed.

• Utility is composable: New programs can reference membership tiers and snapshots without altering the base protocol.

• Utility avoids wagering: RH utilities are designed to reward participation and contribution, not gambling or betting behavior.