The namespace architecture in Reddcoin implements a hierarchical identity and naming system with market-driven allocation via auctions. The system consists of three integrated tiers:

1. Namespaces - Top-level domains (like .redd) that are auctioned to owners who set the rules for identifiers within their namespace
2. User IDs - Second-level identifiers (like alice.redd) bound to specific namespaces
3. ReddIDs - Cross-namespace identities that enable consistent identification and social features

• Auction System: Market-based allocation mechanism for all tiers
• Profile System: Manages user identities, social connections, and reputation
• P2P Network Layer: Propagates namespace information and associated data
• Database Layer: Persistently stores all namespace and identity data

• Revenue Distribution: Auction proceeds are distributed according to a formula:

  • 50-80% burned (deflationary pressure)
  • 5-10% to namespace owners
  • 5-25% to node operators
  • 5-15% to development fund

• Anti-Squatting Mechanisms: Progressive penalties, renewal requirements, and usage incentives

• Namespace owners configure parameters:
  • Character rules (allowed characters, length requirements)
  • Economic parameters (revenue distribution, pricing tiers)
  • Auction parameters (duration, minimum bid increment)
  • Renewal settings (period, grace period, fees)

The architecture is built directly into the Reddcoin Core codebase with a modular design consisting of managers for namespaces, auctions, profiles, and P2P communication, all coordinated by a central ReddID manager.

This system enables a sustainable, self-governing digital identity ecosystem within the Reddcoin blockchain.