ECONOMICS IN THE RADIX CONSENSUS PROTOCOL
RADIX network being a layer 1 consensus protocol designed to keep up with the swift growth of decentralized finance(DeFi) deploys Cerberus, a foundational blueprint of the approach to establish a totally decentralized, scalable and effective public network that can connect billions of users around the globe.
There are various aspects to a network which contribute to its operations and sustainability, these components interact with each other in order to create a kind of work chain situation where they correlate for optimum performance and to provide support for the running of the substrate.
Considering the economic aspect of the radix network, it basically revolves around the utility token, which facilitates transactions within the ecosystem.
The organisational setup of this substrate comprises of the three major token holders, their interactions as well as how much grant that is issued to them to operate and contribute to the system's development.
Registered in the United Kingdom,the foundation is a no - profit oriented company that will advance the radix public infrastructure as well as assist in the management of the radix ecosystem and community.
This foundation is faced with the responsibility of allocating three sets of grant tokens which are the network security grant,foundation grant and network subsidy grant. These grants of tokens are issued for diverse objectives,with a schedule that is consistent with such objectives.
The network security grant is about 600m worth of XRD that will serve the purpose of the initial radix stake for securing the radix network with no unlocking period. Another 600m worth of XRD uses as payment for those additional nodes that meet the performance criteria, it has an unlocking period of 10years. The foundation grant is about 300m and an unlocking period of 7 years, issues to support the long term technical development of the foundation.
The development of the technology that forms the basis of radix can be traced to the founder of the substrate Dan Hughes who has spent a good number of years as well as his personal wealth on the project and everyone else who was involved in the process.The grant of 2.4bn tokens will be issued to reward their relentless efforts towards the development of radix network. However, the grant of tokens will have a locking period of 1/year and a daily unlocking schedule of 3years, this is to facilitate proper incentives alignment.
Between the years of 2013 and 2017,the members of the public were offered and opportunity to support the development of radix network, so far, about 2.28bn radix tokens have been allocated to those who contributed to the project with an additional 720m tokens to be provided for purchases or earning through diverse means, afterwards, all the purchased tokens will be added to the total number of publicly held tokens.
STABLE TOKEN RESERVE
This grant is issued to assist in the development of this project, it is a2.4bn radix tokens grant locked indefinitely and not included in the total circulating token supply.
The radix foundation intends to explore a number of formulations of a stable token for a 10year period to ascertain if there will be a need for the utilization of the stable token reserve.Should the reserve not be needed,it will be destroyed after the 10 year testing period.
Radix objective is to keep every major component of the substrate up and running by acknowledging their contributions to the project as well as rewarding efforts where necessary. These token grants being issued to the various contributors to the development of the radix network facilitates the advancement of the ecosystem and more innovations on the platform.
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