TLDR:

• Consultation runs May 9–19 on repurposing the 2.4B XRD stablecoin reserve
• Proposal: 1B XRD for incentives, 1B XRD for Growth Fund, ~6B XRD max supply cut
• Token holders signal using ROLA proofs, weighted by XRD held during the period

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The Radix Foundation will open an XRD Token Holder consultation from May 9th to May 19th, 2025 in order to better understand the sentiment of the Radix community and gather input on a significant change to tokenomics and long-term ecosystem strategy.

The proposal, announced recently, outlines a plan to redirect the reserve toward a long-term incentives program and a strategic growth fund. The goal is to accelerate ecosystem adoption, deepen liquidity, and improve Radix’s market position without compromising future development resources.

How the Consultation Works

Token holders will be able to connect their account(s) to a dedicated consultation dApp and signal whether they support or oppose the proposal. Participation will use ROLA proofs, which enables secure proof of signaling without requiring an on-chain transaction.

Input will be weighted based on the time-weighted average amount of XRD or XRD equivalents, including at least LSUs and LSULP, held between May 9th and May 19th. If time permits, we will also look to include other XRD equivalents such as XRD in certain liquidity pools, although this is not guaranteed.  

After the consultation ends, the Foundation will publish:

• The aggregated results
  
• A breakdown of support and opposition by account (with cryptographic proof)
  
• The corresponding weighting based on XRD (or equivalents)
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A simple majority of weighted responses will be used to gauge the opinion of the Radix community.

To ensure this is a fair representation of XRD token holder opinions, the Foundation (and subsidiaries) will not be participating with any XRD under its control or controlled by third parties on its behalf, and any entity and its associated accounts that control over 1Bn XRD will also be excluded. 

What’s Being Proposed

In short, the Foundation proposes to:

• Allocate 1 billion XRD to a points-based, multi-season incentives campaigns to grow on-chain liquidity and usage.
  
• Create a 1 billion XRD Growth Fund for strategic initiatives (e.g., T1 listings, bridges, VC support).
  
• Shorten the emission schedule by 20 years, reducing the maximum supply by ~6 billion XRD.
  
• Hold the remaining 400 million XRD in reserve for potential extension or burn.

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How Signaling is Verified

Each time a user participates in the consultation, the dApp constructs a standardized message string based on their selection. This message is hashed (using BLAKE2b), then submitted as a ROLA challenge to the Radix Wallet.

The wallet signs the hash with the private key of the selected account, creating a ROLA proof that’s returned to the dApp. This proof is then verified server-side by checking the signature against the message and the account’s public key. If valid, it’s stored as a confirmed, timestamped signal tied to that account.

This system ensures the Foundation can later prove how each account signaled, without revealing private keys or requiring on-ledger actions.

Why Use ROLA Instead of On-Ledger Transactions?

Radix Off-Ledger Authentication (ROLA) is a secure way for users to prove ownership and control of an account without making an on-ledger transaction. It works by letting a user sign a specific message (such as their consultation choice) with their wallet, producing a cryptographic proof of intent.

For this consultation, ROLA offers several key advantages over on-ledger voting:

• No Transaction Fees: Users can signal their input without paying any gas or fees. This removes friction and encourages broader participation.
  
• No Ledger Spam: Since nothing is recorded directly on the ledger, there’s no risk of bloating it with low-value voting transactions.
  
• Private but Verifiable: The user’s signal is stored off-ledger, but backed by a verifiable cryptographic signature. This ensures authenticity without compromising wallet privacy.
  
• Battle-Tested Security: ROLA is fully integrated into the Radix Wallet and dApp Toolkit, using well-established cryptographic standards (e.g. BLAKE2b hashing, EdDSA signing) to ensure that all proofs are legitimate and tamper-proof.

This makes ROLA ideal for consultations, surveys, and community signaling—especially when token weighting and wide accessibility are critical.

Learn more about ROLA here: docs.radixdlt.com/docs/rola-radix-off-ledger-auth‍

Next Steps

The Foundation believes that with Radix’s technology now production-ready, this is the right time to act boldly and invest in growth. The consultation is your chance to weigh in on this strategic shift. 

More information and access to the consultation dApp will be shared before May 9th. 

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