Nodes
5 Min

Mansion Madness

Redlight Finance

It’s been a while since we have published a Medium article, but if you are a part of our discord you will know that we have been super busy!

Here’s a brief overview of some of the key updates since then…

  • Kyle has come on board as our Community Manager and he continues to exceed our expectations. Keep up the awesome work!
  • Alex continued to drop too many alphas in AMAs, and also now has his Twitter Verified!
  • Indy still isn’t wearing pants
  • Shero got our Twitter Verified!
  • We have hired our CFO, Joe (AKA Trader Joe). Thanks to Joe Redlight Finance is now an internationally registered business!
  • Districts are now fully tradeable on NFTrade.com, which means Red’s Raffles will be up and runnin’ in no time.
  • Speaking of Districts, District rewards have increased from 1 $PLAYMATES/day to 5 and Cities will be 10 $PLAYMATES/day once Cities are released
  • Partnership with Shumo, along with our partnered Liquidity Lending
  • We also announced our partnership with Nitro Network, and purchased a healthy amount of their NFT Miners (with all profits going to the Redlight Trust once live)
  • The team had a lot of success at the Dubai Crypto Expo, bringing in a lot of new investors, and just as importantly, new potential partnerships.
  • We let the cat out of the bag that we will be attending the NexTech Week Tokyo Blockchain Expo in May, where we will be letting the world know more about our upcoming gasless Blockchain!
Indy kept his pants on for the expo, but had to remove the Jacket by the end of day 2

On to the updates

As we have said since day one, sustainability has always been at the forefront of our project. Passive income is great, no-one's going to argue that, but long term passive income is even better. This is why we have introduced Mansion Tax.

Mansion Tax

We began development on Mansion Tax not long after we launched, and anyone that can read smart contracts would be able to see this was implemented into one of our smart contracts several weeks ago, just never activated (set at 0%).

The main reasoning behind this was to counter multi wallet holders. It became very clear, both through the blockchain and through people outwardly admitting it, that there a lot of unethical whales invested in RND. Some have many (I’m talking upwards of 30) small wallets set at a low tier, basically to avoid paying the fair whale tax that they should be.

Now, if someone were to have several wallets, and leaving it at a certain tier (i.e 9 or 19 Mansions), they obviously won’t be compounding. So what else is there to do with their rewards?

Sell.

If you look at the chart on DEX SCREENER you can see a lot of big buys, sure, but an extraordinary amount of small sells, which adds up (hence the sales pressure).

When there is a lot of sell pressure, the price tends to go down, and would you rather pay a small tax on a token that's worth very little, or a higher tax on a token that actually has a solid price?

I hope this helps you understand the need for Mansion Tax.

Heres how Mansion Tax works

Mansion Tax is 50%.

Mansion Tax gets applied at the time of claiming from your Mansions (like Claim Tax).

Therefore, if someone is claiming their rewards then selling, the sales flow goes as follows:

Claim Tax and Mansion Tax is paid at the time of claiming, then Sales Tax and Whale Tax are combined at the time of sale.

i.e If you own 1 Mansion and waited 24 hours so that you have 1 $PLAYMATES as an unclaimed reward, the claim and sales flow would look like this:

CLAIMING: 1-(15% +50%)=0.35 $PLAYMATES in wallet

SELLING: 0.35-(10%+2.5%)= 0.30625 $PLAYMATES paid for after taxes.

It’s important to note, that this is called Mansion Tax, not Node Tax… so this is only applied to Mansions, not Districts or Cities.

Heres how Manson Tax would look for a 1 Mansion Wallet and for a 200 Mansion Wallet:

Therefore, a 1 Mansion wallet would have a ROI of 1.531% Daily, or just over 65 days if the price remained the same (If price goes up, ROI would be quicker and vice versa if price was to go down). As the amount of Mansions increase, the ROI Varies due to the increase in Mansion Cost and Whale Tax, how many Districts they have, and also whether or not the user has compounded rewards to get to that point.

Other factors to mention:

  • Compounding to create more Mansions is still Tax Free
  • Districts still have the 1.5% increase in rewards for all nodes, and 1% decrease in Claim Tax per District
  • Our VIP Club Node NFT’s still have a 25% increase in rewards for all nodes

There will be ways to lower Mansion Tax from 50% all the way down to 20%. The first way to lower Mansion Tax will be through Mini-Nodes.

Mini Nodes are still in development, but will allow investors to not only lower the Mansion Tax, but also help feed the sustainability of $PLAYMATES itself.

The second way will be through the Blockchain Incentive Program (BIP) NFTs.

The BIP NFTs will be earned by staking playmates in the BIP staking program. Once you have staked the proper amount as indicated on the progress bar, you will unlock the ability to mint a BIP NFT for only the cost of gas.

BIP NFTs have functions on RND, and will be migratable and usable on the upcoming blockchain. BIP NFTs will increase node reward production by their given percentage, and also on RND will decrease your Mansion Tax.

Speaking of Blockchain..

Development on our very own Blockchain is well and truly underway! This will be released in 2 stages, the first having very minimal gas, and the 2nd stage having 0 gas… Yes we are talking about a gasless blockchain in the defi space.

Our Blockchain will be multi-language supported, compatible with Metamask, and of course allow smart contracts.

Because we will be transitioning from Avalanche to our own blockchain, we have also started work on our own first project, which will be another passive income protocol, called Scarlet Chains.

Once we are closer to releasing both V1 of our Blockchain and Scarlet Chains, we will release more info on how this all works in more detail.

Until next time!

RED

Socials

Discord: http://discord.gg/RedlightNodeDistrict

Telegram: https://t.me/RLNodeDistrict

Twitter: https://twitter.com/RLNodeDistrict

Further reading