Onchain Money: BAX & RED Token

BABB
3 min readNov 20, 2023

The Dual Network Structure of BABB and ReDeFi

BABB and ReDeFi will be a dual-layer blockchain structure to enhance the efficiency and scalability of transactions. The foundation is built on two interlinked networks:

  • ReDeFi Layer-1: Focused on providing robust security and decentralisation, L1 is tailored for large-scale and cross-border on-chain money transfers and inter-day decentralized exchanges (DEXes). It also aligns with certain regulatory standards.
  • BABB Layer-2: L2 will give us the flexibility we need to meet the existing or even future regulatory requirements to operate. Designed for scaling and efficiency. It’ll be used for micropayments using On-Chain Money, private transactions, and high-frequency trading (HFT) on DEXes.

The Token Dynamics

Both the L1 and L2 networks are underpinned by their native tokens:

  • RED (L1) / BAX (L2): Similar to ETH on Ethereum, both of our native tokens power all network transactions and maintain security. They hold value, are tradable, and you stake (1) (become a validator) or delegate to earn rewards. Both BAX and RED can be staked. All operations on the network, including transactions with On-Chain Money, require a nominal amount of BAX or RED.
  • On-Chain Money (USD/GBP): These are RDF-20 tokens on both L1 and L2, representing fungible assets that are divisible and combinable. They maintain a consistent total supply across both layers, transferable via a bridge.

(1) Subject to regulatory considerations.

Fee Structure for On-Chain Money Transfers

Transferring On-Chain Money will require a small BAX fee on L2 (or RED on L1) from the initiating account. Receiving accounts do not need BAX/RED but will require a small amount for subsequent transfers. This fee system ensures smooth and secure transfers of On-Chain Money.

Decentralized Exchanges (DEXes) Across Both Layers

DEXes will operate on both L1 and L2, allowing liquidity providers to offer RED and BAX, as well as on-chain USD liquidity. This facilitates easy exchanges between the native token and On-Chain Money. Additionally, meta-transactions will sponsor exchange fees to assist users without native tokens to begin their journey on our platform seamlessly.

Staking

As clarified in our recent discussions, both L1 and L2 will allow users to engage with the network as validators by setting up nodes or as delegators through staking.

Closing Thoughts

As we continue to refine our ecosystem, stay tuned for more information on the functionality and integration of BAX staking and upcoming updates on ReDeFi. We’re dedicated to providing you with clear communication and transparency as we navigate this next chapter.

Your unwavering support and active participation drive the heart of our mission at BABB. Should you have any questions or seek further clarification, please feel free to reach out. Together, we’re reshaping the future of finance, and we appreciate your ongoing engagement in this transformative journey.

Read the ReDeFi WhitePaper here

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