Phase 1 overview • Simple by design

How Root Works

ROOT is the on-chain token. Credits are internal protocol units used for rewards and utilities. This page explains the Phase 1 mechanics at a glance — without heavy technical details.

Credits are internal (not a token) Conversions include protocol fees ROOT Draw is optional

Visual Flow (Phase 1)

This is a simplified map of how value moves between ROOT, Credits, ROOT Draw, and the protocol treasury.

                 ┌──────────────────────────┐
                 │           ROOT           │
                 │     (BEP-20 on BSC)      │
                 └───────────┬──────────────┘
                             │
               ┌─────────────┼───────────────────┐
               │                                 │
               ▼                                 ▼

   ┌────────────────────────┐        ┌────────────────────────┐
   │     ROOT → Credits     │        │        ROOT Draw       │
   │ Convert ROOT to Credits│        │ Buy tickets with ROOT  │
   │  Fee: 5% (treasury)    │        │ Winner earns Credits   │
   └───────────┬────────────┘        └───────────┬────────────┘
               │                                 │
               ▼                                 ▼

    ┌──────────────────┐             ┌──────────────────────┐
    │      CREDITS     │             │    Credits Reward    │
    (Internal, off-chain)            │  80% of pool value   │
    └──────────┬───────┘             └──────────────────────┘
               │
               ▼
   ┌────────────────────────┐
   │     Credits → ROOT     │
   │Convert Credits to ROOT │
   │ Fee: 7% + limits       │
   │(treasury-sourced ROOT) │
   └───────────┬────────────┘
               ▼
   ┌────────────────────────┐
   │    Protocol Treasury   │
   │  ROOT held by protocol │
   │ops • stability • future│
   └────────────────────────┘

   ROOT Draw ROOT split:
   • 10% burned
   • 90% to treasury

Notes: Credits are internal units (not money, not tokens). Participation in ROOT Draw is optional and rewards are not guaranteed. Conversions may be limited or paused for protocol stability.

Phase 1 Rules (Summary)

These rules keep the system simple and sustainable in the early stage.

Credits are internal and non-transferable.
ROOT → Credits conversion includes a 5% protocol fee (treasury).
Credits → ROOT conversion includes a 7% protocol fee and monthly limits.
ROOT Draw tickets are purchased with ROOT (optional participation).
ROOT Draw splits ticket ROOT: 10% burn and 90% treasury.
ROOT Draw winner receives Credits (~80% pool value), not direct ROOT.
Conversions may be paused if needed for stability.

Important: Credits are not guaranteed returns, not passive income, and not cash.

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