REQ: the token that powers the network

REQ is a deflationary ERC-20 token that powers Request Network's payment requests

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Where to get REQ?


The REQ tokens’ initial supply was 1,000,000,000. So far, the supply successfully decreased proportionally to the adoption down to 999,877,117. The main KPIs can be found on the community-built Req.network website.

The REQ tokens are available to exchange on open markets through mainstream cryptocurrency exchanges. Decentralized alternatives also support REQ, allowing you to seamlessly exchange REQ directly from your own wallet. Always verify that the REQ address is this one: 0x8f8221afbb33998d8584a2b05749ba73c37a938a.

Disclaimer: The content on this page is provided for informational purposes only. It does not constitute a recommendation by Request to buy, sell, or hold any financial product or instrument referenced in the content.

What you see

Request is a network that allows anyone to simply create, share or fulfill a request for payment.

When creating a request for payment, the user defines to which address the payment request needs to be allocated and what the amount due is. Optionally, the user can define terms and conditions to the payment request, upgrading the simple request for payment into an invoice. After creation the user can share this request for payment/invoice, to make sure it’s paid by the other party. All these steps are documented and stored on the Request network, allowing everyone involved to easily keep track of their invoices, receipts, and payments for (personal) accounting purposes.

Seems pretty simple, right?

 

What is happening in the background

REQ supply decreases proportionally to the increasing adoption of the Request network. The higher the growth, the more deflationary the REQ token is.

In the background, there is a lot more going on to make it feel this simple. First, as the Request network leverages decentralized networks like Ethereum and IPFS for increased security, privacy, and data ownership for the user, minor fees are required at each step in the process. This cost is often referred to as transaction fees; a cost required to broadcast a change to the blockchain network (like Ethereum, which Request uses). Transaction fees are used to incentivize operators (miners) of the blockchain to reach a consensus on the state of the network, making sure data is consistent and trustless.

When creating a payment request using Request, an additional fee is required when broadcasting the payment request to the network. Upon broadcasting, this fee is sent to a smart contract called “Burner” on Ethereum, collecting all fees paid to create requests.

By calling a function on the smart contract, these collected ETH fees are periodically swapped into REQ tokens using an on-chain liquidity protocol called Kyber Network. Simultaneous to swapping ETH into REQ, the smart contract transfers the total amount of REQ tokens towards the Ethereum genesis address. This practically deduces this amount of REQ from the total supply, as no one will ever be able to gain access to this address.

That’s cool. What does a token bring to the network?

  1. Anti-spam

    When creating a new payment request or invoice with Request, a minor fee is required before broadcasting to the network. This fee discourages people to use the network maliciously, keeping the network clean from spam and performant for our users.

    These fees are collected in a smart contract on Ethereum and are burned periodically, lowering the total amount of REQ tokens in existence. While the REQ tokens are burnt on the Ethereum mainnet, transactions are mainly processed through the xDai Stable Chain. On xDai they are locked in a contract before being moved back to the Ethereum mainnet where they are burnt.

    The code for the smart contract is publicly accessible here:

    View burner smart contract for ETH

  2. Governance

    As the Request network is a decentralized protocol, we have implemented an off-chain governance structure on Snapshot that allows network participants to vote on decisions that are critical for the network's long-term success. An on-chain governance structure will take place as well, in parallel to Request Dao development.

    In this governance structure, the REQ utility token is leveraged to vote.
  3. Staking

    Staking REQ is possible on Bancor. Technically, this is single token liquidity providing, with impermanent loss protection.
    Additionally, we are developing another staking concept for deploying and operating a node. By locking an amount of REQ tokens, node operators can deploy a node to provide their end-users with a valuable service, abstracting the complexities of IPFS & Ethereum.
  4. Discounts

    Owners of REQ tokens benefit from product discounts once they become available in their respective products. The discounts given vary per product.
  5. Independency

    Users that currently create a request are charged a minor fee in ETH, the native currency of Ethereum, which is swapped into REQ after.

    The REQ token allows the Request network to migrate, simultaneously run on multiple blockchains or even run on its own dedicated blockchain, without hurting the core mechanisms of the network. This makes the network independent from both the currency and technical infrastructure provided by others.

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