# Design Principles

The RSM is designed based on three principles: security, extension, and consistency. The RSM Contracts must also conform to these three principles.

## 1. Security

Security is the foundation of all RSM decentralized applications. RSM design needs to consider two aspects: user asset security and application security, including:

* No custody of user assets
* Trustless
* Censorship-resistant
* Permissionless
* Token/Application's computing logic is open and transparent
* Token/Application supports decentralized governance

## 2. Extension

RSM should have great extension, and can support the logic of currently known decentralized applications and possible future innovations. RSM achieves extension and modularity through the support for token nesting. Applications deployed on RSM can create child applications to utilize the computing capabilities of the child applications, to implement the modularity of building application.

## 3. Consistency

RSM must meet the consistency requirements, ensuring any indexer can compute a completely consistent state based on the on-chain data in OP\_RETURN and the computing logic of the Contract. The RSM Contract consists of two parts: state and state transition function. The state transition function must align with token UTXO operations, which are based on the UTXO model and cannot be extended, to ensure the compatibility and consistency of all Runes tokens. The state is expressed using the state machine model, that requires a rigorous and unambiguous description of the computing logic in the Contract to guarantee the consistency of all the indexers' computing.


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