Over the last few weeks, we have been listening intently to the Radix community about a proposed change to the (e)XRD unlocking mechanism. We are pleased to share that all preparations for the unlock are now completed, and we will be doing the final unlock of (e)XRD on September 15th, 2021 between 14:00-17:00 UTC.
Benefits of Unlocking (e)XRD
Over 915 million XRD is currently staked, an amount that represents over 48.3% of the circulating supply. In addition, there are more than 130 registered validators worldwide. The Radix Public Network has a very high degree of both security and decentralization.
The very high level of staking, tremendous excitement following the Olympia launch, and upcoming Alexandria release – combined with a strong community majority favoring the unlock – indicates an exceedingly high degree of confidence by the community and token holders in Radix.
The Radix core team agrees that now is the right time to proceed with unlocking all (e)XRD. We agree that this move represents one of the most effective ways to accelerate the distribution of stake, decentralization, and network adoption. Therefore, we will be doing the final unlock of (e)XRD on September 15th, 2021.
As this will be the final unlock of (e)XRD, the tokenomics of Radix will be easier to understand for newcomers and existing holders. The top line economics of Radix after the final unlock will be:
- Circulating supply will be 9.6Bn XRD after the final unlock on September 15th, due to the indefinitely locked Stable Coin Reserve*.
- 12Bn XRD Total supply, with no new tokens or unlocks other than the 300m annual XRD network emissions for staking.
- 24Bn XRD Maximum supply will be reached in a minimum of 40 years with the 300m annual XRD emissions.
- Additionally, XRD tokens are locked via Delegated Proof of Stake (dPoS), with over 48% of tokens currently locked in staking in just over a month since the Radix Public Network genesis. This further reduces the floating supply (the number of tokens available for trade on secondary markets).
- All transaction fees on Radix (paid in XRD) are burnt. Approximately 15,000 XRD has already been burnt since the network went live on July 28th, 2021.
Unlocking - Mechanics
We will be triggering the final token unlock on September 15th, 2021. There are various allocations to be unlocked during this process, and all will occur between 14:00-17:00 UTC. Once the unlock is completed, we will email all users subscribed to the Radix mailing list, as well as update the community and social channels.
In preparation for the anticipated excitement and awareness the token unlock will bring to Radix, we are in the process of organizing a range of marketing campaigns to increase understanding about Radix, XRD, and the token unlock within the industry.
With the help of our passionate and enthusiastic Radvocates, we believe this event can significantly amplify the growth we have already been seeing in awareness and distribution of XRD since the Olympia mainnet launch.
We welcome, and encourage, everyone in the Radix community and all Radix token holders to join the discussion about how to contribute to, and maximize the success, we all want to see from unlocking the (e)XRD.
* Some components of an ecosystem are intrinsically important to its success. Decentralized stable coins provide a mechanism for converting native tokens into stable exchange tokens and back again, function as a helpful leverage mechanism, create large amounts of lockup, and provide a useful decentralized stable store of value for other applications to use. Intrinsically, decentralized stores of value also introduce a degree of systemic risk when pegged to an external store of value (such as the USD). To help bootstrap important projects of this type, the Stable Coin Reserve will be formed. This Reserve holds 2.4Bn RADIX TOKENS that are indefinitely locked and entirely removed from circulating supply. The Foundation has a 10-year period in which to review, disburse this reserve to support a systemic stabilization protocol, which may or may not require the use of the Stable Coin Reserve. Should the Stable Coin Reserve not be needed, it will remain locked and be destroyed after the 10-year period.