Realio Network's Expansion: Strengthening Validator Profitability with Protocol Upgrades

The Realio Network has been on a rapid growth trajectory. As more delegators and validators join, the annual percentage yield (APY) for staking gradually decreases, and it has recently reached an all-time low, given the addition of $RST and $LMX as staking collateral on the network. In response to the challenge of adding new tokens as collateral and the potential for more in the future, the Realio community proposed a protocol upgrade to safeguard validator incentives and sustain network growth. The proposal, passed earlier this month, includes an increase in the $RIO block rewards alongside other enhancements, including long-term fixes to the multi-chain bridge, to ensure the network’s continued success.

Here’s a breakdown of what’s changing and how it benefits the network’s future.

Addressing the Validator Economy: Realio's Evolving Landscape

Before the latest proposal was approved, the Realio Network operated with a supply cap of 75 million $RIO tokens, yielding validators an APY of approximately 4%. While this rate was already low, the rapid growth of the ecosystem and increasing staking collateral from $RST and $LMX tokens began to put downward pressure on rewards, threatening validator profitability.

To provide some context, here’s an overview of the current token supply within the network:

$RST Supply: 36 million (maximum cap of 50 million)
$LMX Supply: 2.3 million (maximum cap of 100 million)

As more tokens become available for staking, block rewards are spread thin, leading to lower APY. This presents a critical issue, as validators form the backbone of the network’s security and operational efficiency.

The Proposal: Enhancing Validator Incentives

The community's proposal introduces the following: increasing the $RIO long-term supply cap from 75 million to 175 million tokens, which subsequently increases block rewards.

THIS DOES NOT INCREASE EXISTING SUPPLY OR DILUTE CURRENT HOLDERS, NOR WILL THE TEAM OR ANY OTHER PARTY RECEIVE ANY TOKENS. CIRCULATING SUPPLY WILL NOT REACH THE SUPPLY CAP FOR OVER 40 YEARS FROM NOW. This adjustment is designed to provide the following key benefits:

Boosted Validator APY: A larger supply cap allows for higher block rewards, making the role more profitable and appealing to both existing and new participants.
Enhanced Decentralization and Security: Increased rewards will attract new validators and delegators, strengthening the network’s decentralization and security.
Gradual Token Introduction: To prevent market disruption, the additional tokens will be introduced gradually through block rewards, minimizing the impact on token value.

These measures ensure that validators remain motivated, supporting Realio’s mission to create a resilient and efficient ecosystem.

Implementing Crucial Upgrades for Growth and Stability

The protocol upgrade includes several critical changes designed to enhance the network’s security, decentralization, and sustainability:

Ending Block Rewards on Non-Native Chains: The upgrade will discontinue block rewards for non-native chains, focusing rewards solely on the Realio ecosystem.
Cross-Chain Bridge Overhaul: A major overhaul of cross-chain bridges will be conducted. This includes eliminating reserve wallets, burning existing balances in those wallets, and adopting a mint/burn mechanism secured by a multi-signature system to ensure decentralization.

How to Prepare as a Holder

In conjunction with the increase, the Realio team is preparing for a significant network code upgrade and token re-issuance across Ethereum Network and BNB Smart Chain.

Note: We recommend holders to DO NOTHING unless you are one of the handful of $RIO pool LPs needing to remove liquidity.

Here's what to expect:

Sit tight: We recommend you don’t use $RIO on the Realio Investment Platform during the "blackout period," as we can’t guarantee balances or transactions during this time. Please follow the Realio X account for all official announcements and dates.
Snapshot: A snapshot date has been announced via X for Wednesday, October 30th @ 18:00 UTC. This date/time will start the “blackout period.”
Notification: During the "blackout period," Network participants, token holders, validators, and delegators should temporarily avoid transacting with $RIO on the Ethereum Network and BNB Smart Chain. This will include all activities on these chains related to $RIO on the Realio Investment Platform, including bridging and transactions.
Contract Updates: All contract details will be updated across block explorers and listings on platforms like CoinMarketCap, CoinGecko, Etherscan, and BSCScan. Exchanges will also be notified to ensure a smooth transition.
Airdrop: Once the Realio team has completed all necessary steps, an airdrop of the new $RIO tokens across Ethereum Network, BNB Smart Chain will happen.
Bridge Activation: After the token re-issuance, the updated cross-chain bridges will go live, featuring the updated mint/burn design, further decentralizing the network and securing the ecosystem.
Announcement: The Realio team will announce when the "blackout period" is over, and you can resume your normal wallet activities.

Laying the Foundation for Long-Term Growth

The protocol upgrade represents a forward-thinking solution to the challenges facing Realio’s validator economy. By increasing the $RIO supply cap and enhancing block reward distribution, the network is setting the stage for sustained growth, security, and profitability. The decentralization of cross-chain bridges and the upcoming token re-issuance also mark significant steps toward a more resilient and flexible multi-chain ecosystem.

As the Realio Network continues to evolve, these changes will ensure a smooth and efficient transition, fostering long-term success for validators, token holders, and the broader community. Stay tuned for more updates as Realio positions itself for an even brighter future.

FAQs

Below are the FAQs related to the community proposed Protocol Upgrade Proposal to increase validator profitability via supply cap.

How will this protocol upgrade impact my $RIO staking rewards as a delegator (staker)?

In order to stake your $RIO, the $RIO must be on the Native Realio Network. Therefore, this upgrade will not impact any staked $RIO tokens and block rewards.

Will staking rewards continue to decrease as more validators join the network?

Staking rewards may naturally decrease as more validators enter the network due to increased competition for block rewards. However, the increase in the $RIO supply cap is designed to counterbalance this effect, sustaining profitability and attracting new validators, which supports network security and growth.

Will my current $RIO holdings be affected by the re-issuance or the increased supply?

The additional tokens are going to be introduced gradually over time. The re-issuance and increase are structured to enhance network incentives and security.

What does the cross-chain bridge overhaul mean for token holders?

The cross-chain bridge overhaul will make Realio’s cross-chain operations more secure and decentralized. The new mint/burn mechanism, secured by a multi-signature system, replaces reserve wallets and enhances the security of cross-chain transactions. This upgrade helps ensure the safety of assets when transferring $RIO between chains.

How does the new daily mint limit of $RIO tokens impact the Network?

The daily mint limit (initially set at 1.75 million $RIO tokens) ensures a controlled, stable token issuance, preventing sudden surges in token supply that could impact market stability. This cap is designed to provide a sustainable approach to token distribution over time, balancing the network’s growth needs with stability.

What is the long-term goal of these protocol changes for the Realio Network?

The protocol upgrade is a strategic move to ensure long-term validator profitability, enhance network security, and enable sustainable growth, proposed by the community. By creating a more attractive validator economy and decentralizing cross-chain operations, Realio aims to build a resilient, multi-chain ecosystem that supports the interests of validators, token holders, and community members alike.

Reissuance of $RIO smart contract on the Ethereum Network and BNB Smart Chain.

As a $RIO holder, what do I need to do to receive the airdrop?

The airdrop only impacts $RIO holders on the Ethereum Network and BNB Smart Chain. If you are a holder on either chain, the only action required is to keep the $RIO tokens in your wallet during the “blackout period.”
Uniswap LP pool balances will be captured by the snapshots, but individual positions will not. If you are providing $RIO liquidity on any LP pools, you should withdraw your positions to a wallet. This is the only way to make that $RIO available to the snapshot. Any $RIO remaining in a Uniswap LP position after the final snapshot will effectively be lost, and we will not be able to recover it with the coming airdrop.
Any $RIO locked in any other off-platform contracts will need to be withdrawn to a standard account as well. Movement of $RIO is unrestricted, so there are any number of possible uses off-platform. It is the responsibility of the $RIO holder to ensure that they have accounted for where their $RIO is and moved it to a standard account wallet prior to the final snapshot. Any $RIO remaining locked with these off-platform services may not be accounted for by the snapshot and, therefore, may not be delivered by the airdrop.

What is the “blackout period,” and what activities will it affect?

The "blackout period" is scheduled during the snapshot date, which is scheduled for Wednesday, October 30th @ 18:00 UTC. It will be a temporary suspension of $RIO-related activities, including staking, bridging, and transactions on Ethereum Network and BNB Smart Chain. It allows the Realio team to implement the $RIO Ethereum Network and BNB Smart Chain reissuance smoothly. Once the "blackout period" ends, normal activities will resume, and the new features and token cap will be in effect.

When can I expect updates on the "blackout period," snapshot date, and contract changes?

The snapshot date and time were announced on X. Anything that happens after 18:00 UTC on Wednesday, October 30th, may not be able to be captured and recovered during the airdrop.
The Realio team will provide notifications through official channels - Discord and X. Participants should stay tuned for announcements regarding these key dates, which will ensure a smooth transition during the upgrade process.
We cannot guarantee the precise timing of the beginning of the “blackout period” and the time of the final snapshot, but the two will overlap as closely as possible. Users and holders should assume that the beginning of the “blackout period” is also the moment of the final snapshot. We cannot guarantee that any $RIO activity on Ethereum and BNB Smart Chain that occurs after the beginning of the “blackout period” will be accounted for in the final airdrop distribution.

What steps do I need to take to ensure I receive the new $RIO tokens?

Holders don't need to take any specific actions beyond being aware of the snapshot and “blackout period.” The Realio team will ensure all eligible token holders will automatically receive new $RIO tokens through an airdrop after the re-issuance process.
Uniswap LP pool balances will be captured by the snapshots, but individual positions will not. If you are providing $RIO liquidity on any LP pools, you should withdraw your positions to a wallet. This is the only way to make that $RIO available to the snapshot. Any $RIO remaining in a Uniswap LP position after the final snapshot will effectively be lost and we will not be able to recover it with the coming airdrop.
Any $RIO locked in any other off-platform contracts will need to be withdrawn to a standard account as well. Movement of $RIO is unrestricted, so there are any number of possible uses off-platform. It is the responsibility of the $RIO holder to ensure that they have accounted for where their $RIO is and moved it to a standard account wallet prior to the final snapshot. Any $RIO remaining locked with these off-platform services may not be accounted for by the snapshot and therefore may not be delivered by the airdrop.

Does it matter where I hold my $RIO—on an exchange, a hot wallet (e.g., MetaMask), or a hardware wallet (e.g., Ledger/Tangem)?

No, it doesn’t matter if your $RIO is on an exchange, a hot wallet like MetaMask, or a hardware wallet like Ledger or Tangem—just hold your tokens, and the re-issuance will happen smoothly.

Will exchanges and platforms update to the new $RIO BNB Smart Chain and Ethereum Network contract?

Yes, Realio will notify all major exchanges and platforms to update the new $RIO BNB Smart Chain and Ethereum Network contract details. Exchanges hold $RIO in wallets just like any other Web3 wallets, such as MetaMask or Ledger. Following the snapshot, reissued tokens will be automatically distributed to exchange-held wallets.

Do I need to do anything if I hold $RIO on Stellar, Algorand, or the Realio Native?

No, there’s nothing you need to do if you hold $RIO on Stellar, Algorand, or Realio Native. Only Ethereum Network and BNB Smart Chain tokens are being re-issued at this time.

Will CoinMarketCap and CoinGecko update to the new $RIO BNB Smart Chain and Ethereum Network contract details?

Yes, Realio will notify major platforms like CoinMarketCap and CoinGecko to ensure they update to the new $RIO BNB Smart Chain and Ethereum Network contract details. This helps ensure accurate listing information for the token post-upgrade.