The Namespace Auction System forms the foundation of the ReddID ecosystem by establishing top-level domains through a fair, market-driven auction mechanism.

Namespaces are valuable top-level identifiers (similar to TLDs in DNS) that establish a domain of governance within the Reddcoin identity ecosystem. Namespace owners set rules for all user IDs created within their namespace and receive a portion of all auction proceeds from user ID sales.

Namespaces have the following core properties:

• Length: 1-15 characters
• Format: Lowercase letters (a-z), numbers (0-9), hyphen (-)
• Pricing: Based on length (shorter names have higher minimum prices)
• Rules Governance: Can set rules for all user IDs in their namespace
• Revenue Sharing: Receive a percentage of all user ID auction proceeds

The namespace auction follows a standard process:

1. Creation: A namespace auction is created with a reserve price and duration
2. Bidding: Users place bids with required deposits (20% of bid amount)
3. Anti-Sniping: Auctions extend if bids are placed near the end
4. Finalization: Highest bidder wins and pays their full bid amount
5. Distribution: Proceeds are distributed according to the revenue model

Once a namespace is acquired, the owner can configure various parameters:

• Character Rules: Allow/disallow numbers, hyphens, underscores
• Length Rules: Set minimum and maximum user ID lengths
• Economic Parameters: Configure revenue percentages and pricing tiers
• Auction Parameters: Set minimum bid increments and auction durations
• Renewal Settings: Set renewal periods and grace periods

Revenue from namespace auctions is distributed according to a fixed model:

• Burn Pool: 60-70% (permanently reduces RDD supply)
• Node Operators: 15-25% (rewards infrastructure providers)
• Development Fund: 5-15% (funds ongoing development)

The Namespace Auction System is implemented through the following core components:

• NamespaceManager: Central component for namespace management
• AuctionManager: Handles auction creation, bidding, and finalization
• Blockchain integration via OP_RETURN for permanent record
• P2P network protocol for efficient information distribution

For detailed API information, see the Namespace API Reference.

See the Namespace RPC Commands for command-line interface details.