Comprehensive Design Document Reddid - reddcoin-project/reddcoin GitHub Wiki

Reddcoin Integrated Auction System

Comprehensive Design Document

Version 3.1 | April 2025


Executive Summary

This document presents an integrated design for Reddcoin's two-tiered auction system with a complementary identity linking layer. The system builds upon the existing Reddcoin infrastructure to create a fair, efficient, and economically sustainable mechanism for allocating human-readable identifiers and identity profiles within the Reddcoin ecosystem.

The integrated system is composed of three interrelated components:

  1. Namespace Auction System - For registering top-level namespaces (.redd, .crypto, etc.)
  2. User ID Auction System - For registering user identifiers within namespaces (alice.redd, bob.crypto)
  3. ReddID Profile System - For establishing cross-namespace identity profiles with social features

The design implements a hierarchical structure where top-level namespaces are auctioned first, those namespace owners define rules for user IDs within their namespace, and ReddIDs provide a cross-namespace identity layer that connects user IDs across the system through direct registration rather than auctions.

This approach achieves several key objectives:

  1. Market-driven price discovery for valuable namespaces and user IDs
  2. Prevention of squatting through economic disincentives
  3. Creation of deflationary pressure on RDD supply
  4. Sustainable funding for ongoing development
  5. Rewards for network participants through fee distribution
  6. Simplified registration process for cross-namespace identities
  7. Establishment of a reputation and identity layer across the Reddcoin ecosystem

Table of Contents

  1. System Overview
  2. Core Architecture
  3. Auction Mechanics
  4. Identity Features
  5. Blockchain Integration
  6. P2P Protocol Extensions
  7. Database Schema
  8. Economic Model
  9. User Interface Design
  10. Implementation Plan
  11. Governance Framework
  12. Interoperability
  13. Appendices

1. System Overview

1.1 Three-Tier System Architecture

The Reddcoin Identity and Naming System implements a three-tier architecture:

  1. Namespaces (Top Level)

    • Analogous to top-level domains (.com, .org) in DNS
    • Examples: .redd, .crypto, .gaming, .finance
    • Controlled by namespace owners who define rules and economic parameters
    • Auctioned with highest minimum prices (10,000-100,000 RDD)
  2. User IDs (Second Level)

    • Identifiers within a specific namespace
    • Examples: alice.redd, bob.crypto, store.finance
    • Follow the rules established by namespace owners
    • Auctioned with namespace-specific price tiers
  3. ReddIDs (Cross-Namespace Identity)

    • Cross-namespace identity profiles
    • Link multiple user IDs across namespaces to a single identity
    • Provide reputation, social connections, and profile features
    • Directly registered with a fee set by the namespace owner

1.2 Key Components

The integrated system consists of these key components:

  1. ReddIDManager: Central controller orchestrating all identity and naming systems
  2. NamespaceManager: Handles namespace operations and configuration
  3. AuctionManager: Manages auction processes for namespaces and user IDs
  4. ProfileManager: Manages ReddID profiles, social connections, and reputation
  5. ReddIDDB: Database layer for persistent storage of all system data
  6. ReddIDP2PManager: P2P protocol extensions for network communication

1.3 Hierarchical Relationships

The system implements a strict hierarchical relationship where:

  1. Namespaces must exist before any User IDs can be registered within them
  2. Namespace parameters control and restrict User ID parameters
  3. User IDs must exist before they can be linked to a ReddID
  4. ReddIDs provide cross-namespace identity linking and social features
  5. Ownership of user IDs and ReddIDs is verified using cryptographic keys
  6. Revenue from lower tiers flows partially to higher tiers creating aligned incentives

2. Core Architecture

2.1 System Components

The core architecture consists of the following components:

2.1.1 ReddIDManager

  • Central controller for the entire identity and naming system
  • Coordinates interaction between all components
  • Implements validation interface for blockchain integration
  • Manages lifecycle of all components
  • Provides public API for applications and wallet integration

2.1.2 NamespaceManager

  • Handles namespace registration, configuration, and renewals
  • Enforces namespace auction rules
  • Stores and validates namespace parameters
  • Transfers namespace ownership
  • Manages namespace expiration and grace periods

2.1.3 AuctionManager

  • Implements auction mechanisms for namespaces and user IDs
  • Processes bids, finalization, and settlements
  • Distributes auction proceeds according to revenue models
  • Extends auctions based on anti-sniping rules
  • Manages auction states through their lifecycle

2.1.4 ProfileManager

  • Manages ReddID profiles and properties
  • Handles social connections between ReddIDs
  • Calculates and stores reputation metrics
  • Provides namespace resolution for ReddIDs
  • Manages cross-namespace identity linking

2.1.5 ReddIDDB

  • Persistent storage layer for all system data
  • Implements schema for namespaces, user IDs, and ReddIDs
  • Stores auction history and bid information
  • Manages social graph data and reputation history
  • Provides efficient query mechanisms

2.1.6 ReddIDP2PManager

  • Extends the Reddcoin P2P protocol for identity and naming
  • Propagates auction announcements and bids
  • Distributes profile updates and social connections
  • Synchronizes namespace configurations
  • Validates reputation calculations

2.2 Data Flow

The interaction between components follows these main flows:

  1. Namespace Creation

    • User requests namespace auction creation via NamespaceManager
    • AuctionManager creates and validates auction parameters
    • ReddIDP2PManager announces auction to network
    • After auction ends, NamespaceManager configures the new namespace
  2. User ID Registration

    • User requests ID auction within a namespace
    • AuctionManager validates against namespace rules
    • After auction ends, ID is registered to winner
    • Revenue is distributed according to namespace parameters
  3. ReddID Registration

    • User requests ReddID registration via ProfileManager
    • ProfileManager validates the request and collects the registration fee
    • The fee is distributed according to namespace parameters
    • ReddID is registered and profile created
  4. Cross-Namespace Resolution

    • ReddID links to multiple User IDs across namespaces
    • Resolution requests are processed by ProfileManager
    • Linked identities can be discovered and verified

2.3 Integration Points

The system integrates with the Reddcoin ecosystem through:

  1. Blockchain Integration: Via OP_RETURN transactions for all state changes
  2. Wallet Integration: For bid placement, profile management, and key management
  3. Node Integration: For P2P message propagation and validation
  4. RPC Interface: For application interaction and user interface support
  5. External API: For third-party service integration

3. Auction Mechanics

3.1 Auction Types

The system implements specialized auction types for each tier:

3.1.1 Namespace Auctions

  • Standard Auctions: Default for most namespace names

    • Duration: 14-30 days
    • Deposit: 20% of bid amount
    • Reserve price: 10,000-100,000 RDD based on length
  • Premium Auctions: For high-value namespace names

    • Longer duration: 30 days
    • Higher deposit: 25% of bid amount
    • Higher reserve prices: 2-5x standard prices

3.1.2 User ID Auctions

  • Standard Auctions: Default auction type for most names

    • Duration defined by namespace (typically 3-7 days)
    • Deposit requirement defined by namespace (typically 10%)
    • Reserve price determined by namespace length-based pricing tiers
  • Premium Auctions: For high-value names (short, dictionary words)

    • Longer duration (typically 7-14 days)
    • Higher deposit requirement (typically 15-20%)
    • Higher reserve prices
  • Renewal Auctions: For names approaching expiration

    • Current owner gets right of first refusal
    • If not renewed, enters public auction
    • Grace period implemented before public auction

3.2 Auction Lifecycle

All auctions follow a standardized state flow with variations by type:

[Initial State] → [Auction Creation] → [Auction Open] → [Auction Ended] → [Settlement] → [Ownership]

Key state transitions include:

  1. Auction Creation: Creator establishes parameters and makes deposit
  2. Auction Open: Bidding period active, bids must exceed minimum increment
  3. Anti-Sniping Extensions: Extensions triggered by late bids to prevent sniping
  4. Auction Ended: Bidding closed, awaiting finalization
  5. Settlement: Highest bidder wins, proceeds distributed, losing bids refunded
  6. Ownership Period: Winner receives ownership with renewal requirements

3.3 Bidding Rules

Each tier implements tier-specific bidding rules, with common features:

  1. Minimum Increments:

    • Namespaces: 5% minimum bid increment
    • User IDs: Namespace-defined increment (typically 5%)
  2. Deposit Requirements:

    • Namespaces: 20% deposit of bid amount
    • User IDs: Namespace-defined deposit (typically 10-15%)
  3. Anti-Sniping Protection:

    • Namespaces: 12-hour extension if bid placed within final 24 hours
    • User IDs: Namespace-defined extension (typically 12-24 hours)
  4. Bid Validation:

    • All bids must include proof of funds
    • Bids must be cryptographically signed by bidder
    • Bids below minimum increment are rejected
    • Bids below reserve price are rejected

3.4 Settlement Process

The settlement process follows these steps:

  1. Once auction time elapses, the auction enters the finalization phase
  2. The highest valid bid is identified as the winner
  3. The winner's full bid amount is processed
  4. Auction proceeds are distributed according to the tier-specific revenue model
  5. Deposits from losing bidders are refunded (minus processing fees)
  6. The resource (namespace or user ID) is registered to the winner's address
  7. All participants are notified of the auction outcome

4. Identity Features

4.1 ReddID Direct Registration

ReddIDs are registered directly rather than through auctions, with the following process:

  1. Fee Determination:

    • Registration fees are set by namespace owners
    • Fees vary based on factors like name length and desirability
    • Premium names may have higher registration fees
  2. Registration Process:

    • User selects a unique ReddID identifier
    • System validates availability and eligibility
    • User pays the registration fee
    • Fee is distributed according to namespace parameters
    • ReddID is assigned to the user's cryptographic key
  3. Renewal Process:

    • Annual renewal fees to maintain ReddID ownership
    • Fees determined by namespace configuration
    • Usage discounts for active ReddIDs
    • Grace period for late renewals

4.2 ReddID Profiles

Each ReddID includes a standardized profile structure:

  1. Core Identity:

    • ReddID (primary identifier)
    • Display name (customizable)
    • Avatar/profile image (IPFS hash)
    • Bio/description (limited to 256 characters)
  2. Contact Information:

    • Optional email hash (for verification, not displayed publicly)
    • Optional social media identifiers (Twitter, Discord, etc.)
    • Messaging public key (for encrypted communications)
  3. Verification Status:

    • Self-attested information
    • Community-verified indicators
    • Official verification badges (for legally registered entities)
  4. Namespaces Resolution:

    • Linked User IDs across multiple namespaces
    • Default namespace for payments
    • Namespace-specific settings

4.3 Reputation System

The ReddID system includes a built-in reputation framework:

  1. Reputation Metrics:

    • Network longevity (time ReddID has been active)
    • Transaction volume (total RDD transacted)
    • Community engagement (social interactions)
    • Verification depth (number and quality of verifications)
    • Auction behavior (bidding history, payment reliability)
  2. Calculation Method:

    • Base score from verifiable on-chain activity
    • Weighted aggregate of individual metrics
    • Decay function for inactive ReddIDs
    • Protection against manipulation attempts
  3. Display and Usage:

    • Numeric score (0-100)
    • Visual indicator in UI
    • Accessible via API for third-party applications
    • Optional opt-out (with corresponding display indicator)

4.4 Social Graph Features

ReddIDs support social connectivity within the ecosystem:

  1. Connection Types:

    • Follow (one-way connection)
    • Friend (two-way, mutual connection)
    • Endorsement (reputation-affecting connection)
    • Block (negative connection)
  2. Privacy Controls:

    • Public, friends-only, or private visibility settings
    • Granular permission settings for data sharing
    • Encrypted messaging options
  3. Discovery Mechanisms:

    • Directory search with filtering
    • Suggested connections based on activity
    • Namespace-based grouping
    • Reputation-weighted recommendations

4.5 Cross-Namespace Resolution

ReddIDs serve as master identifiers across the namespace system:

  1. Resolution Protocol:

    • Bidirectional mapping between ReddID and namespace-specific IDs
    • Priority resolution for conflicts (ReddID takes precedence)
    • Standardized addressing format: id@reddid or id@namespace
  2. Update Propagation:

    • Changes to ReddID profile cascade to linked namespaces where applicable
    • Namespace-specific settings can override global settings
    • History of changes is maintained for auditability
  3. Identifier Management:

    • Centralized management interface for all linked identifiers
    • Batch operations across multiple namespaces
    • Migration tools for consolidating identities

5. Blockchain Integration

5.1 OP_RETURN Data Structures

The system uses Reddcoin's OP_RETURN capability to record identity and naming data on-chain, with specialized formats for each operation type.

5.1.1 Namespace Operations

Namespace Auction Creation

0     2  3          7    8         16   17   25    26     34       35    39          74  
|-----|--|----------|----|---------|----|-----|-----|------|---------|----|----------|
magic op  auctionId type nameHash  ns   start  end  reserve depositPct configHash

Namespace Bid Placement

0     2  3          7    8       16    17    25
|-----|--|----------|----|---------|----|-----|
magic op  auctionId hash bidAmount time

Namespace Auction Finalization

0     2  3          7    8       16    17    25
|-----|--|----------|----|---------|----|-----|
magic op  auctionId hash winAmount time

5.1.2 User ID Operations

User ID Auction Creation

0     2  3                             39  
|----|--|-----------------------------|  
magic op   name.namespace_id (37 bytes)

User ID Bid Placement

0     2  3          7    8       16    17    25
|-----|--|----------|----|---------|----|-----|
magic op  auctionId hash bidAmount time

User ID Auction Finalization

0     2  3                             39  
|----|--|-----------------------------|  
magic op   name.namespace_id (37 bytes)

5.1.3 ReddID Operations

ReddID Registration

0     2  3                             35  36    44    45    109
|----|--|-----------------------------|-----|-----|------------|
magic op   reddid_id (32 bytes)       time  fee   profile_hash

ReddID Profile Update

0     2  3                             35   36    100
|----|--|-----------------------------|-----|-----|
magic op   reddid_id (32 bytes)       time  ipfs

ReddID Connection Operation

0     2  3                             35   36                             68   69   70
|----|--|-----------------------------|-----|-----------------------------|----|----|
magic op   from_reddid (32 bytes)     to_reddid (32 bytes)               type flag

5.2 Operation Codes

The system defines the following operation codes:

Code Symbol Description
OP_NAMESPACE_AUCTION_CREATE { Create a new namespace auction
OP_NAMESPACE_AUCTION_BID } Submit bid for a namespace
OP_NAMESPACE_AUCTION_FINALIZE [ Finalize namespace auction to winner
OP_NAMESPACE_AUCTION_CANCEL ] Cancel a namespace auction (by creator only)
OP_AUCTION_CREATE % Create a new user ID auction
OP_AUCTION_BID ` `
OP_AUCTION_FINALIZE " Finalize user ID auction to winner
OP_AUCTION_CANCEL ' Cancel a user ID auction (by creator only)
OP_REDDID_REGISTER $ Register a new ReddID
OP_REDDID_PROFILE_UPDATE # Update ReddID profile information
OP_REDDID_CONNECTION + Create/modify social connection
OP_REDDID_RENEW * Renew a ReddID registration

5.3 Consensus Rules

New consensus rules are implemented to enforce:

  • Validity of naming and identity operations
  • Uniqueness of identifiers across the system
  • Correct sequence of state transitions
  • Appropriate fee payments
  • Authorization of operations
  • Namespace rule compliance
  • Profile data validity requirements

6. P2P Protocol Extensions

6.1 New Message Types

The P2P protocol is extended with new message types to support the identity and naming system:

6.1.1 Namespace Messages

Message Type Value Description
MSG_NAMESPACE_AUCTION_ANNOUNCE 0x11 Announce a new namespace auction
MSG_NAMESPACE_AUCTION_BID 0x12 Announce a bid on a namespace
MSG_NAMESPACE_AUCTION_FINALIZE 0x13 Announce namespace finalization
MSG_NAMESPACE_AUCTION_CANCEL 0x14 Announce namespace cancellation
MSG_NAMESPACE_CONFIG_REQUEST 0x15 Request namespace configuration
MSG_NAMESPACE_CONFIG_RESPONSE 0x16 Provide namespace configuration

6.1.2 User ID Messages

Message Type Value Description
MSG_USERID_AUCTION_ANNOUNCE 0x17 Announce a new user ID auction
MSG_USERID_AUCTION_BID 0x18 Announce a bid on a user ID
MSG_USERID_AUCTION_FINALIZE 0x19 Announce user ID finalization
MSG_USERID_AUCTION_CANCEL 0x1A Announce user ID cancellation

6.1.3 ReddID Messages

Message Type Value Description
MSG_REDDID_REGISTER_ANNOUNCE 0x21 Announce a new ReddID registration
MSG_REDDID_PROFILE_UPDATE 0x24 Announce profile update
MSG_REDDID_CONNECTION 0x25 Announce social connection change
MSG_REDDID_PROFILE_REQUEST 0x26 Request profile data
MSG_REDDID_PROFILE_RESPONSE 0x27 Provide profile data
MSG_REDDID_REPUTATION_UPDATE 0x28 Update reputation score
MSG_REDDID_RENEW_ANNOUNCE 0x29 Announce a ReddID renewal

6.2 Configuration Distribution

Since the full namespace configuration and profile data are too large for OP_RETURN, they're distributed through the P2P network:

  1. When a namespace auction is finalized, the winner's configuration is stored locally
  2. A configuration hash is included in the blockchain transaction
  3. Nodes can request the full configuration by sending a MSG_NAMESPACE_CONFIG_REQUEST
  4. Nodes with the configuration respond with a MSG_NAMESPACE_CONFIG_RESPONSE
  5. Receiving nodes validate the configuration against the hash from the blockchain

6.3 Profile Distribution

Similar to namespace configurations, profile data is distributed via P2P:

  1. Primary P2P Distribution:

    • When a profile is created or updated, the data is stored locally
    • A hash (either IPFS or direct) is included in the blockchain transaction
    • Nodes can request the full profile with a MSG_REDDID_PROFILE_REQUEST
    • Nodes with the profile respond with a MSG_REDDID_PROFILE_RESPONSE
  2. IPFS Storage Option:

    • Profile data can be stored on IPFS for redundancy
    • IPFS hash is recorded in applicable OP_RETURN operations
    • Provides alternative retrieval method if P2P network is unavailable
  3. Caching Strategy:

    • Frequently accessed profiles are cached by nodes
    • TTL-based cache expiration to ensure updates propagate
    • Prioritized caching based on connection proximity and reputation

6.4 Subscription and Relay

Nodes can subscribe to specific types of identity and naming events:

  1. Namespace Subscription:

    • Nodes can subscribe to specific namespaces of interest
    • Filter by namespace ID to receive only relevant updates
    • Prioritize relay to interested nodes
  2. ReddID Subscription:

    • Nodes can subscribe to specific ReddIDs of interest
    • Filter updates based on social proximity
    • Prioritize updates from high-reputation identities
  3. Efficient Relay:

    • Messages are relayed based on subscription preferences
    • Nodes maintain subscription tables for efficient routing
    • Time-sensitive messages (bids, auction endings) receive priority

7. Database Schema

7.1 Namespace Tables

7.1.1 namespace_info

Stores core namespace configuration.

Column Type Description
id VARCHAR(15) Namespace identifier (PK)
owner BLOB Owner's address
allow_numbers BOOLEAN Whether numbers are allowed
allow_hyphens BOOLEAN Whether hyphens are allowed
allow_underscores BOOLEAN Whether underscores are allowed
min_length INT Minimum name length
max_length INT Maximum name length
renewal_period INT Days until renewal required
grace_period INT Days in grace period
namespace_revenue_pct INT % of auctions going to namespace owner
burn_pct INT % of auctions being burned
node_pct INT % of auctions going to node operators
dev_pct INT % of auctions going to development fund
min_auction_duration INT Minimum auction duration in days
max_auction_duration INT Maximum auction duration in days
min_bid_increment REAL Minimum bid increment percentage
reddid_registration_fee INT64 Fee to register a ReddID
reddid_renewal_fee INT64 Fee to renew a ReddID
config_hash BLOB(32) Hash of this configuration
last_updated INT64 When configuration was last updated
expiration INT64 When namespace ownership expires

7.1.2 namespace_pricing_tiers

Stores pricing tiers for different name lengths within a namespace.

Column Type Description
namespace_id VARCHAR(15) Namespace identifier (PK, FK)
min_length INT Minimum length for this tier (PK)
min_price INT64 Minimum price for names in this tier

7.2 User ID Tables

7.2.1 user_ids

Stores information about registered user IDs.

Column Type Description
name VARCHAR(64) Name portion of the ID (PK)
namespace_id VARCHAR(15) Namespace portion of the ID (PK, FK)
owner BLOB Owner's address in binary format
registration_time INT64 When the ID was registered
expiration_time INT64 When the ID expires
last_transaction INT64 Timestamp of last transaction using this ID
transaction_count INT Number of transactions using this ID
metadata_hash BLOB(32) Hash of additional metadata (optional)

7.3 Auction Tables

7.3.1 auctions

Stores information about all auctions in the system.

Column Type Description
auction_id BLOB(32) Unique identifier for the auction (uint256)
name VARCHAR(64) Name portion of the ID being auctioned
namespace_id VARCHAR(15) Namespace portion of the ID
creator_address BLOB Creator's address in binary format
start_time INT64 Start time (unix timestamp)
end_time INT64 End time (unix timestamp)
reserve_price INT64 Minimum acceptable bid
current_bid INT64 Highest current bid amount
current_bidder BLOB Address of highest bidder in binary format
deposit_amount INT64 Required deposit amount
state INT Current auction state
type INT Auction type (0=standard, 1=premium, 2=verified, 3=renewal)
metadata_hash BLOB(32) Hash of additional metadata (optional)
block_height INT Block height when auction was created
txid BLOB(32) Transaction ID of the auction creation transaction

7.3.2 bids

Stores information about all bids placed.

Column Type Description
bid_id BLOB(32) Unique identifier for the bid
auction_id BLOB(32) Reference to the auction
bidder_address BLOB Bidder's address in binary format
bidder_reddid VARCHAR(32) Bidder's ReddID (if they have one)
bid_amount INT64 Bid amount
deposit_amount INT64 Deposit amount paid
bid_time INT64 Time when bid was placed (unix timestamp)
proof_of_funds BLOB Cryptographic proof of available funds
txid BLOB(32) Transaction ID of the bid transaction
is_winner BOOLEAN Whether this bid won the auction
refunded BOOLEAN Whether the deposit was refunded (for non-winners)

7.4 ReddID Profile Tables

7.4.1 reddid_profiles

Stores core profile information for each ReddID.

Column Type Description
reddid VARCHAR(32) The ReddID (primary key)
owner BLOB Owner's address in binary format
display_name VARCHAR(64) User-selected display name
avatar_hash BLOB(32) IPFS hash of avatar image
bio VARCHAR(256) Short biography or description
email_hash BLOB(32) Hash of verified email (optional)
social_data TEXT JSON of linked social profiles
messaging_pubkey BLOB Public key for encrypted messaging
verification_status INT Verification level (0-3)
creation_time INT64 When the ReddID was created
last_updated INT64 When profile was last updated
expiration_time INT64 When the ReddID expires
active BOOLEAN Whether the ReddID is currently active
flags INT Bitfield of profile flags/settings
registration_fee INT64 Fee paid for registration
renewal_fee INT64 Current renewal fee

7.4.2 reddid_reputation

Stores reputation information for ReddIDs.

Column Type Description
reddid VARCHAR(32) The ReddID (foreign key)
overall_score REAL Aggregate reputation score (0-100)
longevity_score REAL Score component for account age
transaction_score REAL Score component for transaction history
engagement_score REAL Score component for community engagement
verification_score REAL Score component for verification depth
auction_score REAL Score component for auction behavior
last_calculated INT64 When the score was last calculated
calculation_proof BLOB Proof of calculation correctness
calculator_signatures TEXT JSON of node signatures validating the calculation

7.4.3 reddid_connections

Stores social connections between ReddIDs.

Column Type Description
from_reddid VARCHAR(32) Source ReddID
to_reddid VARCHAR(32) Target ReddID
connection_type INT Type (0=follow, 1=friend, 2=endorse, 3=block)
creation_time INT64 When connection was established
last_interaction INT64 When last interaction occurred
visibility INT Privacy setting (0=public, 1=friends, 2=private)
metadata TEXT Additional connection metadata
txid BLOB(32) Transaction ID of the connection operation

7.4.4 reddid_namespace_resolution

Maps ReddIDs to namespace-specific user IDs.

Column Type Description
reddid VARCHAR(32) The ReddID (foreign key)
namespace_id VARCHAR(15) Namespace identifier
user_id VARCHAR(64) User ID within that namespace
is_primary BOOLEAN Whether this is the primary namespace for the ReddID
auto_update BOOLEAN Whether profile changes propagate to this namespace
last_synced INT64 When last synchronized

8. Economic Model

8.1 Revenue Distribution

Each tier of the system implements a specialized revenue distribution model to create aligned incentives throughout the ecosystem.

8.1.1 Namespace Revenue Model

For each successful namespace auction, the revenue is distributed as:

Component Percentage Description
Burn 70% Permanently remove RDD from circulation
Node Incentives 15% Reward node operators maintaining the network
Development Fund 15% Support ongoing development and improvements

8.1.2 User ID Revenue Model

For each successful user ID auction, the proceeds are distributed according to the parent namespace configuration:

Component Percentage Description
Burn 50-80% Permanently remove RDD from circulation (namespace configurable)
Namespace Owner 5-10% Revenue share to namespace owner (namespace configurable)
Node Incentives 5-25% Reward node operators maintaining the network (namespace configurable)
Development Fund 5-15% Support ongoing development and improvements (namespace configurable)

8.1.3 ReddID Revenue Model

For ReddID registration and renewal fees, the revenue is distributed as:

Component Percentage Description
Burn 50-70% Permanently remove RDD from circulation (namespace configurable)
Namespace Owner 10-20% Revenue share to namespace owner (namespace configurable)
Node Incentives 10-20% Reward nodes participating in identity verification
Development Fund 5-15% Support ongoing development of identity features

8.2 Pricing Model

Pricing across the system varies by tier and follows these general principles:

8.2.1 Namespace Pricing

Based primarily on length, with shorter names commanding premium prices:

  • Single character: 100,000 RDD minimum
  • Two characters: 50,000 RDD minimum
  • Three characters: 25,000 RDD minimum
  • Four+ characters: 10,000 RDD minimum

8.2.2 User ID Pricing

Defined by namespace-specific pricing tiers, but generally following:

  • Short names (1-2 characters): Premium pricing (typically 50,000-100,000 RDD)
  • Medium names (3-4 characters): High pricing (typically 10,000-25,000 RDD)
  • Standard names (5-9 characters): Moderate pricing (typically 5,000-10,000 RDD)
  • Long names (10+ characters): Base pricing (typically 2,500-5,000 RDD)

8.2.3 ReddID Registration Fee

Direct registration fees set by namespace owners, typically following:

  • Premium ReddIDs (3-4 characters): 20,000-30,000 RDD
  • Standard ReddIDs (5-8 characters): 5,000-10,000 RDD
  • Long ReddIDs (9+ characters): 2,500-5,000 RDD

Additional factors affecting price include:

  • Dictionary words
  • Common names
  • Numeric-only IDs
  • Pattern-based IDs (repeating characters, sequences)
  • Verification status

8.3 Renewal Economics

The renewal model balances stability with prevention of squatting:

8.3.1 Namespace Renewal

  • Renewal Period: 180-730 days (configurable, default 365 days)
  • Grace Period: 14-60 days (configurable, default 30 days)
  • Renewal Fee: 25% of equivalent auction price
  • Reclamation: If not renewed during grace period, enters public auction

8.3.2 User ID Renewal

  • Renewal Period: Defined by namespace (typically 365 days)
  • Grace Period: Defined by namespace (typically 30 days)
  • Renewal Pricing: Based on namespace configuration:
    • Standard renewal: Percentage of equivalent auction price (typically 50%)
    • Grace period renewal: Higher percentage (typically 75-100%)
    • Usage discounts: Reduced fees for actively used IDs

8.3.3 ReddID Renewal

  • Renewal Period: 365 days standard
  • Grace Period: 30 days after expiration
  • Renewal Pricing:
    • Active ReddIDs (high reputation score): 25% of registration fee
    • Standard renewal: 50% of registration fee
    • Grace period renewal: 75% of registration fee

8.4 Anti-Squatting Measures

The system implements multiple anti-squatting mechanisms across all tiers:

  1. Economic Disincentives:

    • High initial acquisition costs through auction mechanism for namespaces and user IDs
    • Substantial registration fees for ReddIDs
    • Substantial renewal fees
    • Progressively higher costs for bulk ownership
  2. Usage Requirements:

    • Activity-based renewal discounts
    • Transaction count tracking
    • Reputation impacts for inactive IDs
  3. Ownership Limitations:

    • Progressively higher pricing for multiple premium identifiers
    • Verification requirements for high-value identifiers
    • Time-delay between multiple registrations
  4. Governance Controls:

    • Reserved names for trademark holders
    • Dispute resolution process
    • Malicious use penalties

9. User Interface Design

9.1 Auction Browser Interfaces

9.1.1 Namespace Auction Browser

Namespace Auction Browser Interface

Key features include:

  • Filtering by namespace status and characteristics
  • Search functionality for specific namespaces
  • Detail view showing configuration and auction status
  • One-click access to bidding interface

9.1.2 User ID Auction Browser

User ID Auction Browser Interface

Key features include:

  • Primary organization by namespace
  • Filtering by auction type and status within namespace
  • Search functionality for specific names across namespaces
  • Clear display of namespace rules and requirements
  • One-click access to bidding interface

9.2 ReddID Registration Interface

ReddID Registration Interface

Key features include:

  • Username availability checker
  • Fee calculator based on namespace and name characteristics
  • Profile setup wizard
  • Payment processing
  • Linking to existing user IDs

9.3 Bidding Interfaces

9.3.1 Bid Placement Interface

Bid Placement Interface

Key elements include:

  • Clear auction information and status
  • Current highest bid information
  • Minimum bid requirement calculation
  • Deposit amount calculation
  • Countdown timer for auction end
  • Confirmation controls

9.4 Management Dashboards

9.4.1 User Dashboard

User Dashboard

Key features include:

  • Organization of owned resources by type (namespaces, user IDs, ReddIDs)
  • Active bids tracking across all auction types
  • Auction watchlist with filtering
  • Notification center with alerts
  • Renewal reminders grouped by type

9.4.2 Identity Profile Manager

Identity Profile Manager

Key sections include:

  • Basic profile editor with avatar and bio
  • Verification status and upgrade options
  • Connected namespace identities
  • Social connection management
  • Privacy and visibility settings
  • Reputation score breakdown

9.4.3 Social Dashboard

Social Dashboard

Key features include:

  • Connection visualization and management
  • Activity feed of connected ReddIDs
  • Reputation trending indicators
  • Messaging interface (direct and encrypted)
  • Discovery recommendations

9.5 Mobile Experience

Key aspects include:

  • Simplified profile view and editing
  • QR code for easy identity sharing
  • Quick connection management
  • Notification center for identity interactions
  • Streamlined verification processes

10. Implementation Plan

10.1 Project Phases

The implementation follows a phased approach to ensure stable, sequential deployment:

Phase Timeline Focus
Design & Planning Weeks 1-6 System specification, documentation, architecture
Namespace Development Weeks 7-16 Core namespace functionality, auction system
User ID Development Weeks 14-22 User ID auction system with namespace integration
ReddID Development Weeks 18-26 Direct registration, profile system, social features
UI/UX Development Weeks 18-30 Unified interface for all three systems
Testing & QA Weeks 22-34 Testing, security audits, beta program
Deployment & Launch Weeks 31-38 Phased mainnet deployment, monitoring

10.2 Dependency Structure

The implementation follows a clear dependency chain:

  1. Namespace System: Must be implemented first as the foundation
  2. User ID System: Depends on namespace system for rules and parameters
  3. ReddID System: Integrates with both prior systems for cross-namespace functionality

10.3 Technical Implementation Tasks

  1. Core Protocol Extensions:

    • Define OP_RETURN formats for all operations
    • Implement validation rules for each resource type
    • Create consensus rules for system operations
  2. Database Development:

    • Implement comprehensive database schema
    • Create efficient indexing for common queries
    • Develop synchronization mechanisms
  3. P2P Protocol Extensions:

    • Implement all message types and handlers
    • Create configuration distribution system
    • Develop subscription mechanisms
  4. Economic System Implementation:

    • Implement revenue distribution logic
    • Create pricing tier calculation systems
    • Develop fee calculation algorithms
  5. Identity System Implementation:

    • Implement profile data structures
    • Create reputation calculation algorithms
    • Develop social connection framework
    • Implement direct registration process for ReddIDs
  6. User Interface Development:

    • Create auction browsers for namespaces and user IDs
    • Build ReddID registration interface
    • Develop configuration and management interfaces
    • Create identity and social dashboards
    • Develop mobile-optimized experiences

10.4 Risk Assessment

Risk Impact Likelihood Mitigation
Namespace squatting High High Progressive pricing, verification requirements
Integration complexity High Medium Clear interfaces, phased implementation, comprehensive testing
User confusion Medium High Improved documentation, intuitive UI, gradual feature rollout
Performance bottlenecks Medium Medium Optimized data structures, caching strategies, load testing
Privacy concerns Medium Medium Granular privacy controls, encryption options, minimal data collection
Adoption barriers High Medium Intuitive UX, gradual feature introduction, educational resources
Governance disputes High Low Clear governance framework, dispute resolution process

11. Governance Framework

11.1 Platform Governance

The Reddcoin platform maintains governance over system-wide parameters:

  1. Parameter Boundaries:

    • Minimum/maximum values for namespace configuration
    • Revenue distribution ranges
    • System-wide fee minimums
    • Protocol rules for all operations
  2. Reserved Resources:

    • Reserved namespaces for official use (.redd, etc.)
    • Protected identifiers for system operation
    • Trademark protection mechanisms
  3. Protocol Evolution:

    • System upgrade processes
    • Feature addition procedures
    • Backward compatibility requirements
  4. Security Response:

    • Vulnerability reporting and handling
    • Emergency response procedures
    • System integrity protection

11.2 Namespace Governance

Namespace owners have governance rights over their namespace:

  1. Configuration Authority:

    • Character rule definition
    • Length requirements
    • Pricing tier configuration
    • Revenue distribution within allowed ranges
    • ReddID registration and renewal fee settings
  2. Operational Control:

    • User ID auction approvals (optional)
    • Premium name designation
    • Namespace-specific renewal policies
    • Usage discount configuration
  3. Namespace Evolution:

    • Configuration update procedures
    • Feature enabling/disabling
    • Service integration options
  4. First-Level Dispute Resolution:

    • Preliminary trademark disputes
    • Name squatting complaints
    • Usage policy enforcement

11.3 Dispute Resolution

A comprehensive framework for handling disputes includes:

  1. Dispute Categories:

    • Identity ownership disputes
    • Trademark and brand claims
    • Impersonation claims
    • Verification challenges
    • Usage policy violations
  2. Resolution Process:

    • Initial automated assessment
    • Peer-based review for standard cases
    • Expert panel for complex disputes
    • Binding arbitration for unresolvable cases
  3. Enforcement Mechanisms:

    • Warning notifications
    • Temporary suspensions
    • Permanent revocations (extreme cases)
    • Economic penalties
    • Profile flags and indicators
  4. Appeal Process:

    • Multi-level appeals
    • Community oversight
    • Transparent decision documentation
    • Review mechanism for disputed decisions

12. Interoperability

12.1 Internal System Integration

  1. Cross-Component Integration:

    • Seamless data flow between all system components
    • Consistent interfaces and formats
    • Unified event handling
    • Integrated state management
  2. Core Protocol Services:

    • Integration with Reddcoin staking system
    • Compatibility with ReddPay payment services
    • Support for smart contract interactions
    • Identity-based transaction authorization
  3. Application Ecosystem:

    • Standard API for third-party applications
    • SDK for developers to integrate identity functions
    • OAuth-style authentication support
    • Webhook notification system

12.2 External System Interoperability

  1. Cross-Chain Resolution:

    • Resolution protocol for external blockchain identifiers
    • Bridge contracts for Ethereum, Binance Smart Chain
    • Verifiable claims for cross-chain identity
    • Inter-chain message passing
  2. Web Standards Compatibility:

    • W3C DID (Decentralized Identifier) compatibility
    • Verifiable Credentials support
    • WebAuthn integration options
    • OAuth/OpenID Connect bridge
  3. Legacy System Integration:

    • Email-based verification processes
    • API gateway for traditional systems
    • Progressive migration paths
    • Hybrid identity solutions

12.3 API Framework

The system exposes a comprehensive API:

  1. Core Endpoints:

    • /namespace/* - Namespace management endpoints
    • /userid/* - User ID management endpoints
    • /reddid/* - ReddID profile and social endpoints
    • /auction/* - Auction interaction endpoints
    • /reputation/* - Reputation data endpoints
  2. Authentication Methods:

    • Signature-based authentication
    • Challenge-response protocol
    • Delegation capabilities
    • Session management
  3. Data Formats:

    • JSON primary representation
    • Compact binary format for bandwidth-constrained environments
    • Verifiable credential format option
    • IPFS content addressing

13. Appendices

13.1 Technical Diagrams

13.2 UI/UX Mockups

13.3 Economic Models

13.4 Implementation Resources

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