1. Smart Contracts

The RAI protocol is powered by a modular suite of smart contracts that coordinate all on-chain operations. These contracts ensure transparency, automation, and trustless interaction across the RAI ecosystem. Below is an overview of the core smart contracts:

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Core Smart Contracts in the RAI Protocol

1. Treasury Contract

   • Manages reserve assets (stablecoins, RWA tokens).

   • Holds Risk-Free Value (RFV) to back RAI token supply.

   • Interacts with bonding and staking contracts to mint and redeem RAI.

2. Sales Contract

   • Handles direct RAI token purchases.

   • Applies dynamic pricing rules and transaction fee logic (e.g., 0% buy, 5% sell).

   • Integrated with community-driven DAO voting for tax rate updates.

3. Bonding Contract

   • Enables users to purchase discounted RAI by contributing assets (e.g., stablecoins, tokenized RWA).

   • Calculates bond discount rates and vesting schedules.

   • Dynamically interacts with Treasury to update reserve ratios.

4. Staking Contract

   • Allows users to lock RAI tokens and earn APY.

   • Calculates and distributes staking rewards based on protocol-defined formulas.

   • Supports flexible or fixed-term staking options in future upgrades.

5. Reward Distribution Contract

   • Distributes staking rewards and bonding incentives.

   • AI-assisted to adjust emission rates based on market conditions and DAO policies.

6. Buyback and Burn Contract

   • Executes periodic buybacks of RAI tokens using a portion of fees or surplus treasury.

   • Burns tokens to reduce circulating supply, thereby increasing scarcity and value.

   • Triggered automatically or through DAO proposals.

7. Contribution Value Algorithm Contract

   • Calculates each wallet’s contribution score based on:

     • Amount staked

     • Duration of staking

     • Bonding volume

     • Participation in DAO governance

   • Used to determine reward weighting, vesting speed, or premium status within the ecosystem.