Redlight Nodes system passively rewards its users through technology that allows investors to build and compound active reward systems. Nodes are a collection of data points that reward users for their generation and use. Each node generates a predetermined amount of its representing coin/token. Similar to proof-of-work mining, nodes work on a proof-of-stake system. Each coin/token generated can be used to create more nodes to increase daily rewards or sold on the market to be exchanged for underlying liquidity paired coins.

NFT technology integrated within node smart contracts allows flexibility and sustainability with the reward generation process. Before the advancements with NFTs, nodes could not be swapped, sold, or traded easily, making them essentially worthless by tying their value solely to the work they can generate.