Key Points:
- RedStone Oracle launched its RED token on Ethereum, with a fixed supply of 1 billion tokens and an initial market cap of $200 million.
- Airdrop controversy arose as only around 4,000 addresses received tokens, despite a promised 10% community distribution, with eligibility tied to specific Discord roles.
Blockchain oracle provider RedStone Oracle has officially launched its RED token on Ethereum, aiming to enhance the security and decentralization of its data delivery infrastructure through staking.
The project, known for offering off-chain data to decentralized applications (dApps) and Layer 2 blockchains, seeks to provide a cost-efficient alternative to traditional oracle solutions like Chainlink.
RedStone Oracle Launches RED Token to Enhance Data Security
With a fixed supply of 1 billion tokens, RED is hard-coded into a non-upgradable contract. An initial circulating supply of 280 million tokens has resulted in a market capitalization of around $200 million, with a fully diluted valuation of $725 million. Trading at approximately $0.72, RED saw an initial trading volume of about $8 million.
Under RedStone’s Community and Genesis allocation, 10% of the total supply is set aside for community distribution through claim activities. The token can be staked by holders and data providers using RedStone’s Actively Validated Service (AVS) on EigenLayer.
The staking mechanism leverages EigenLayer’s restaking protocol to strengthen data feed security and reliability. Users can stake directly or opt for liquid staking through Mega DAO Magpie.
Eligibility Rules Leave Many Participants Empty-Handed
Despite a strong launch, RedStone Oracle’s airdrop has sparked controversy within its community. Many users who participated in mining activities, Zealy tasks, and other engagement initiatives expected rewards but found themselves excluded from the airdrop.
Complaints have surfaced on social platforms, with users alleging that only those holding specific Discord roles—such as Vein Master, Deep Miner, and Professor—were eligible for token claims. These roles reportedly account for less than 2% of RedStone’s nearly 230,000-member Discord community.
Community estimates suggest that only about 4,000 addresses received the airdrop, contradicting the promised 10% distribution.
Furthermore, top holders in the RSG points ranking, including those in the fifth and seventh positions, were disqualified due to the lack of Discord roles. With over 170,000 leaderboard participants, only 2,296 addresses qualified, leading to frustration over the project’s eligibility criteria.
The backlash has intensified as many recipients received only small amounts of RED, leaving users feeling misled. RedStone’s Discord has since entered “slow mode” to manage criticism.
While the project has received support from major investors like Coinbase Ventures and Blockchain Capital, the controversy over its airdrop distribution may impact community trust moving forward.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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