RedStone Launches RED Token on Ethereum, Enabling Staking Through EigenLayer Integration
RedStone, a blockchain oracle solution provider, has officially launched its RED token on Ethereum, designed to enhance security and decentralization of the platform's data delivery infrastructure through staking mechanisms.
The token launched with a fixed supply of 1 billion RED tokens, which will be distributed across several allocations. According to RedStone co-founder and COO Marcin Kazmierczak, 10% of the total supply will be distributed to the community through various claim activities over time.
"That portion will recognize the crucial role the community plays in RedStone's long-term success. These tokens will be distributed via carefully designed airdrops to reward early supporters, partners and active participants involved in RedStone's growth," Kazmierczak explained.
The first community distribution began with the "RedStone Expedition" participants, who could check their allocations through a claims checker released ahead of Thursday's token generation event. The Expedition was a community engagement program launched in late 2023, where participants earned "RedStone Gems" through various activities. Reports indicate that of approximately 200,000 community members, only around 4,000 qualified for the initial airdrop.
The remaining token allocation includes 10% for protocol development, 20% for core contributors, 4% for Binance Launchpool, 24.3% for ecosystem and data providers, and 31.7% for early backers. Each category follows different release schedules extending up to 48 months.
Market Response and Exchange Listings
Prior to its official launch, RED was trading at approximately $0.84 on Binance pre-market. With an initial circulating supply of 280 million tokens, this implies a market capitalization of around $235 million and a fully diluted valuation of $840 million.
Several major cryptocurrency exchanges, including Coinbase, Bybit, KuCoin, and Gate, have launched pre-markets for RED. Kazmierczak noted that "RED pre-market on Coinbase was 4th of its kind on that platform, following EigenLayer, MagicEden and Story Protocol," with many expected to transition to spot markets after the token launch.
However, Binance suspended its RED spot trading plans just before launch due to a dispute regarding the community airdrop distribution.
Staking and Security Benefits
A key feature of the RED token is its integration with EigenLayer's restaking protocol. Token holders and data providers can stake RED in RedStone's EigenLayer Actively Validated Service (AVS), either directly through EigenLayer or using Mega DAO Magpie for liquid staked mRED.
"The RED token opens new possibilities for deeper security and decentralization within the RedStone network while establishing a unit of incentivization for participants in the RedStone ecosystem, via implementation of RedStone AVS that can tap into billions of dollars staked in EigenLayer for additional cryptoeconomic security," Kazmierczak said.
Initially, staking rewards will be distributed in RED tokens, with plans to expand to EIGEN and other assets in the future. According to Kazmierczak, "As the system matures, RED stakers will earn rewards from RedStone data users across hundreds of blockchains, paid in widely adopted assets like ETH, BTC, SOL and USDC."
The company confirmed there are no plans to add governance functionality to the token.
About RedStone's Oracle Technology
RedStone differentiates itself from traditional oracle networks like Chainlink through its modular design that keeps data off-chain by default, delivering it on-demand when needed for transactions—a design choice aimed at improving gas efficiency.
The platform has expanded significantly over the past year, adding 72 partnerships and now supporting more than 70 blockchain networks, including Ethereum, Base, Avalanche, TON, and Polygon. RedStone provides price feeds to numerous DeFi protocols such as Morpho, Pendle, Spark, Moonwell, and Venus.
According to DeFiLlama data, RedStone currently secures approximately $6.4 billion in total value, positioning it as the fourth-largest oracle provider behind Chainlink, Chronicle, and Pyth.
The company recently secured $15 million in Series A funding in July 2024, in a round led by Arrington Capital with participation from Kraken Ventures, White Star Capital, and several other venture capital firms.