> For the complete documentation index, see [llms.txt](https://redheal.gitbook.io/whitepaper_eng/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://redheal.gitbook.io/whitepaper_eng/token-economy.md).

# Token Economy

The REDHeal Platform ecosystem establishes a token economy centered around the REDHeal Token (hereinafter referred to as “REDH”), which is issued based on the ERC-20 token standard defined by the Polygon blockchain network.
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REDH tokens can be acquired either through direct purchases on listed exchanges or as rewards distributed by the platform. Acquired REDH tokens can be converted into cash via exchanges or exchanged for other coins/tokens through POL network wallet services, allowing them to be utilized as investment assets.

The REDH token serves as a core component for building, maintaining, and activating the platform ecosystem.
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It functions as a means of distributing rewards to users who utilize the platform’s DeFi services and as a payment method for fees incurred during DeFi service transactions. Furthermore, the REDH token also acts as a governance token, granting eligibility and voting rights in the ecosystem’s primary decision-making body, the DAO.

By connecting users with assets and facilitating peer-to-peer interactions, the REDH token enables a virtuous cycle of “earning (distribution)” and “spending (payment)” within the platform ecosystem, thereby sustaining and perpetuating the ecosystem.
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Additionally, the REDH token lowers the entry barrier for users, increasing international user adoption. As a result, it will play an essential role as a key link in expanding the REDHeal Platform’s business scope and service scale into the global market.

<figure><img src="/files/qcLQZq5GqOnZxuPMxghl" alt=""><figcaption><p><strong>Figure20. Tokenomy of REDHeal platform</strong></p></figcaption></figure>


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