What is Reactive Network?

Reactive Network (REACT) is an innovative blockchain infrastructure launched by PARSIQ. Through Reactive Smart Contracts (RSC), it brings revolutionary changes to the Web3 ecosystem. This technology allows smart contracts to autonomously execute based on on-chain events, without relying on off-chain computing, enhancing efficiency and automation capabilities.

The ecosystem and operation mode of the Reactive Network

Reactive Network is a blockchain ecosystem with event-driven features at its core, enabling blockchain applications to self-execute and achieve seamless cross-chain interaction through Reactive Smart Contracts (RSC). Its operation differs from traditional blockchains as it focuses not only on transaction execution but also emphasizes real-time responsiveness, cross-chain automation, and efficient execution, suitable for multiple domains such as DeFi, NFT, Artificial Intelligence (AI), Internet of Things (IoT), etc.

1. Event-driven smart contract execution

The core technology of Reactive Network is Reactive Smart Contracts (RSC), which is a type of smart contract that can automatically execute based on on-chain events. Unlike traditional smart contracts, RSC can instantly monitor changes on the blockchain and trigger execution based on predetermined conditions. For example:

• DeFi applications: automatically monitor price fluctuations, execute flash liquidation or liquidity rebalancing.
• NFT dynamic changes: automatically update NFT properties or royalty distribution based on user behavior or market trends.
• Interchain Interoperability: When a specific event occurs on one chain, the Reactive Network can immediately trigger corresponding actions on another chain without relying on oracles or centralized services.

2. ReactVM: Efficient smart contract execution environment

Reactive Network uses ReactVM as the execution environment for smart contracts, which has the following advantages compared to the traditional EVM (Ethereum Virtual Machine):

• Supports multi-thread processing, allowing multiple smart contracts to run in parallel, increasing the throughput of the blockchain.
• Lower gas fees to make dApps more efficient during operation.
• The sandbox mechanism ensures the security of smart contract execution and reduces the risks associated with contract vulnerabilities.

(Explains the process of interaction involving the source chain, response network, ReactVM, and the target chain)

3. Cross-chain Automation and Interoperability

Reactive Network natively supports cross-chain operations, achieving decentralized and trustless information exchange and contract execution between different blockchains through the Generic Message Protocol (GMP) protocol. For example:

• Users can trigger events on BNB Chain and automatically execute smart contracts on Ethereum.
• DeFi protocols can automatically adjust liquidity pools through the Reactive Network, reallocating assets according to market demand.

4. Token Economic Model: Deflation and Incentive Mechanism

Reactive Network adopts an innovative deflationary token economic model to ensure long-term sustainable development:

• Transaction fees are 100% burned, not entering the validator reward pool, ensuring the decreasing supply of REACT over time.
• Validators receive newly minted REACT as rewards, ensuring network security through the proof-of-stake (PoS) mechanism.
• Dynamic APY staking mechanism incentivizes long-term holders and prevents short-term speculative behavior from affecting market stability.

5. AI Integration and Web3 Application Scenarios

Reactive Network allows AI agents to seamlessly integrate with Web3, enabling AI to:

• Monitor market trends independently and execute DeFi strategy trading.
• Analyzing user behavior to provide a personalized NFT experience.
• Optimize Internet of Things (IoT) applications, such as smart supply chain and energy management.

Token Economics of Reactive Network

Reactive Network adopts a unique mechanism of currency contraction and inflation balance to ensure the long-term value of the REACT token.

1. Transaction Fee Destruction Mechanism

Each transaction on the Reactive Network incurs a REACT fee, which is 100% burnt rather than distributed to validators. As network usage increases, the supply of REACT will gradually decrease, creating a deflationary effect and boosting the token’s market value.

2. Validator Rewards and New Token Issuance

• Validators do not receive transaction fees, but instead receive rewards through newly minted REACT tokens.
• Every 32 blocks form one Epoch, with a block time of approximately 7 seconds and each Epoch lasting 224 seconds.
• At the initial stage, validators can receive 326.52 REACT per Epoch (about 10.2037 REACT per block), with rewards gradually decreasing over time to ensure economic sustainability.

3. The Balance of Inflation and Deflation

Although the REACT token has an inflationary emission plan, its actual supply will decrease when the network is active due to the transaction fee burning mechanism, resulting in a deflationary trend. Below are the inflation rates at different stages:

• Early Expansion: Annualized inflation rate <9.2%, Epoch reward 326.52 REACT.
• Growth Stage: Annualized inflation rate <6.9%, Epoch reward 244.89 REACT.
• Maturity Stage: Annualized inflation rate <4.6%, Epoch reward 163.26 REACT.

This model ensures high early incentives, which decrease over time, promoting long-term holding and market stability.

4. REACT Supply and Distribution

• Circulating Supply: 310,256,872 REACT
• Total Supply: 500,000,000 REACT
• Target annual inflation rate: <4.6% (after mature stage)
• Block output: approximately 4,508,136 REACT per year
• Number of epochs per year: about 140,880

Start trading REACT spot:https://www.gate.io/trade/REACT_USDT

REACT’s staking mechanism

Staking is a key component of the Reactive Network economic model, ensuring network security and providing rewards.

1. Staking Rules

• The lock-up period is 3 months, during which the REACT token will be locked and cannot be withdrawn early.
• After the expiration of 3 months, all staked tokens and rewards will be released simultaneously.
• Initially, only official validators can stake, and later it will gradually be opened to external users.

2. Staking Rewards (Epoch Rewards)

• Early Expansion Phase: 326.52 REACT per Epoch
• Growth period: every Epoch 244.89 REACT
• Maturity: Every Epoch 163.26 REACT

3. Dynamic APY model

• The annualized yield (APY) of staking adjusts dynamically based on the total amount staked:
• More people staking: individual APY reduced.
• Fewer people staking: individual APY increases (expected maximum of 15-20%).

Summary

Reactive Network (REACT) has created a more intelligent, flexible, and automated blockchain ecosystem through Reactive Smart Contracts (RSC), cross-chain automation, AI integration, and efficient execution architecture. Its unique transaction fee destruction mechanism and dynamic staking rewards ensure the sustainability and value stability of token economy. With the official launch of the mainnet, Reactive Network is expected to become an important infrastructure for the Web3 industry, driving the development of future blockchain applications.