> ## Documentation Index
> Fetch the complete documentation index at: https://docs.rndrntwrk.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How the Protocol Works

> Participation is verified, monetized, and routed through one fixed economic loop.

**Render Network Protocol, or RNDRNTWRK, runs as one continuous economic loop. A stream goes live, a game session starts, an audience engages, or an AI agent operates. The protocol verifies that activity, turns it into monetizable inventory, and routes value through fixed economic logic.**

## The Market Loop

### 1. Activity enters the network

Activity begins in a live surface such as 555stream, 555 Arcade, or an agent-operated flow. The protocol starts tracking from here.

### 2. Participation is verified

The **Verifiable Attention Protocol**, or **VAP**, verifies sessions with Ed25519 cryptographic heartbeats every 5 seconds.

Once participation is verified, the network can measure it and treat it as economic inventory.

### 3. Verified participation becomes inventory

Verified participation creates inventory the network can monetize.

That inventory can support:

* L-Bar ads
* Prediction markets
* Game fees
* Creator-side markets

This is the point where participation stops being a reported metric and becomes an economic surface.

### 4. Value routes through a fixed cascade

Value entering RNDRNTWRK follows fixed economic logic.

| Step        |            Allocation | Recipient            |
| ----------- | --------------------: | -------------------- |
| 1. ARP      |       10% off the top | Audience Reward Pool |
| 2. Creator  | 50% of post-ARP value | Creator wallet       |
| 3. Platform | 50% of post-ARP value | Platform allocation  |

Platform allocation then routes to:

| Platform Split     | Allocation |
| ------------------ | ---------: |
| Treasury           |        70% |
| Buyback and burn   |        20% |
| \$555 reserve      |         5% |
| SOL / USDC reserve |         5% |

### 5. Settlement closes the loop

Some RNDRNTWRK surfaces use internal accounting layers before payout, but they all resolve back into the same economic loop.

Settlement closes the cycle and prepares the next one to begin.

## Points and Credits

Some RNDRNTWRK surfaces use points and credits before settlement.

### Points

Points track eligible participation across supported activities such as gameplay, quests, and referrals.

Current rule:

* **10,000 points = 1 USDC**

Points are non-transferable.

### Credits

Credits track internal balances before payout.

Current rule:

* **1 credit = \$0.01**

Some surfaces may also apply burn bonuses or other surface-specific reward logic.

### Settlement cadence

Current settlement runs:

* **Weekly**
* **Mondays at 05:55 CST**
* **via Merkle distribution**

See the relevant product pages for current implementation details.

## Token-Gated Participation

Some RNDRNTWRK surfaces use \$555-gated participation multipliers.

| Tier        | \$555 Balance | Multiplier |
| ----------- | ------------: | ---------: |
| Curious     |             0 |         1x |
| Creator     |        55,555 |         5x |
| Owner       |       555,555 |        55x |
| Institution |     5,555,555 |       555x |

See Tokenomics and product-specific pages for current multiplier logic and eligibility rules.

## The Economic Flywheel

Participation creates inventory. Inventory attracts monetization. Monetization strengthens audience rewards, creator economics, and protocol funding. Then the loop starts again.

![RNDRNTWRK: The Economic Flywheel](https://res.cloudinary.com/davqktkik/image/upload/v1761223434/render_flywheel_r9ctsr.png)

## Where to Go Next

<CardGroup cols={2}>
  <Card title="555stream" icon="video" href="/555stream">
    See how distribution enters the system.
  </Card>

  <Card title="555 Arcade" icon="gamepad" href="/arcade/overview">
    See how participation becomes verified economic input.
  </Card>

  <Card title="Tokenomics" icon="coins" href="/tokenomics/overview">
    See how the protocol routes value across audience, creator, and platform surfaces.
  </Card>

  <Card title="API Reference" icon="code" href="/api-reference">
    See how to build on verification, monetization, and settlement surfaces.
  </Card>
</CardGroup>

<Note>
  Deep dive: [Fee Distribution](/tokenomics/fee-distribution) · [\$555 Token](/tokenomics/555-token) · [Creator Tokens](/tokenomics/creator-tokens)
</Note>
