REQ: the Token that Powers the Request Network

Image

👋 Request enthusiasts,

The Request Token (REQ) is a key feature of the Request Network. At its core, it’s ensuring the authenticity of transactions on the network.

It’s the pillar of Request independence. The REQ token allows the Request network to be blockchain agnostic, or even simultaneously run on multiple blockchains. There’s even the possibility of running our own blockchain. The key point here is that the core mechanisms of the protocol will still be valid due to the REQ token. This makes the network independent from both the currency and technical infrastructure of our service providers. You can see more information on the token’s utility here.

A burn mechanism has been designed to align adoption with a decrease of the total REQ supply. Users that currently create a request are charged a small fee in REQ that is burned periodically. This perpetually lowers the total amount of REQ tokens in existence.

The core development team and the community are thus all incentivized towards making the network a success. This is due to the token economics where increased adoption results in decreased supply, increasing the value of the REQ token.

Summary:

  1. The REQ token is easy to buy and sell
  2. The burning mechanism creates a correlation between growing adoption & REQ value appreciation
  3. REQ token utility will grow over the next few months
  4. We will implement a REQ staking mechanism
  5. Request will become a DAO

1. The REQ token is easy to buy and sell

From 2018 onwards, we didn’t pay any exchange listing fee but we made sure the REQ token is easy to buy & sell. Here’s a list of places where the REQ token can be bought and sold: https://coinmarketcap.com/currencies/request/markets/

The main exchanges are:

And below are the most common pairs with REQ:

  • BTC/REQ
  • ETH/REQ
  • USDC/REQ
  • USDT/REQ
  • INR/REQ
  • EUR/REQ
  • KRW/REQ

Additionally, because the REQ token is an ERC20 most wallets can safely store it. This includes Gnosis Safe, Ledger, Trezor, Metamask, Atomic wallet, Jaxx and ImToken. Users can even natively send payment requests from the Gnosis Safe and ImToken wallets.

 

2. The burning mechanism creates a correlation between growing adoption & REQ value appreciation

Image

The REQ token burn mechanism is currently useful as a way to align technology adoption and stakeholders’ interests. If adoption grows, the REQ supply decreases.

When creating a payment request using Request, a small REQ fee is sent to a smart contract called “Burner” on Ethereum, collecting all fees paid to create requests.

Because no new tokens can be minted, this is a deflationary mechanism on the total token supply of 1 billion.

Clement, an active community member, created a dashboard to follow the project’s progress: req.network. Request Invoicing launched in mid-2020 is driving up adoption; the growth of Requests for payment on the network is accelerating.

 

3. REQ token utility will grow over the next few months

We are currently working on two new initiatives: Discounts and Governance.

  • Discounts. The discount strategy is similar to the one Binance put in place with the BNB token. The goal is to incentivize users to use our application(s). Holders of REQ tokens will benefit from product discounts, including reduced fees. The discounts given will vary by product.
  • Governance. As the Request network is a decentralized protocol, we plan to implement a governance structure that allows network participants to vote on decisions which are critical for the network’s long-term success. In this governance structure, the REQ token will be representative of voting power for different proposals. At the moment, we’ve set up the first step: an off-chain signaling system with the Request governance Snapshot page: https://snapshot.page/#/requestgovernance.eth/all. The goal is to get feedback and listen to messages from our community of users and holders. This will be tested for a few months. The 2nd step will be to implement an on-chain governance system ruled by smart contracts, with access to the DAOs treasury funds.

 

4. We will implement a REQ staking mechanism

We intend to implement a staking mechanism as a requirement to deploy and operate nodes. By locking a defined amount of REQ tokens, node operators can deploy a node to provide their end-users with an improved user experience, abstracting the complexities of IPFS & Ethereum.

Staking is especially valuable when there is a growing number of developers who want to build on top of Request protocol. The proportion of DeFi projects on top of Ethereum represented 86.74% as per coinmarketcap.com and tether.to on September 3rd, 2020.
We will implement staking when the ecosystem of builders is mature enough.

At the moment, we are focused on the Request Invoicing app. It’s a way to show other builders the possibilities of building on top of Request to bring value to corporate finance. Similar to the DeFi movement for individuals.

We believe that the invoicing industry will get disrupted by a network of invoice-related apps and services, working together efficiently, powered by Request.

 

5. Request will become a DAO

Image

We are considering contributing our treasury’s REQ to a RequestDAO, where the DAO governance system would manage all of the funds. Request will become a DAO within 3 years. We plan to decentralize the governance and let everyone have an impact. Before this becomes a priority we plan to:

  • increase the utility of the REQ token by providing relevant incentive systems. This will result in a positive cycle for users and stakeholders.
  • at the governance level, we’re actively testing Snapshot.page at the moment. We also plan to start testing DAO management systems such as Aragon & Daostack.io .

 

Request is an open source technology that favors interoperability. It’s independent thanks to the REQ token. The technology will still be active for many years into the future. We want hundreds of (d)apps built on top of Request which will communicate with each other, and in time supplant centralized and closed financial institutions such as Paypal & banks.

 

Follow Request (REQ):
Twitter: https://twitter.com/RequestNetwork
Discord: https://request.network/discord
Reddit: https://www.reddit.com/r/RequestNetwork
Telegram: https://t.me/REQ_Official
Telegram announcements: https://t.me/requestnetwork

 

👉 We need you 👈

Are you a small business? Ready to start doing business in cryptocurrency?

We want your help testing Request Invoicing app.

Christophe L.

Co-founder at Request