The Radix Economics – A Token for an Ecosystem

Radix DLT
24th September 2020

Today we are pleased to publish the latest iteration of the Radix Economics paper. In this paper, we introduce a new priced-based unlocking mechanism for both the upcoming release of the E-RADIX ERC20 token, as well as the RADIX TOKEN, which is scheduled to be released in Q2 of 2021 on the RADIX LEDGER.

The paper also provides additional information about token allocations, a small change to the emission rate of the RADIX TOKEN and some more details about the total distribution of E-RADIX TOKENS vs the RADIX TOKEN. 

To give context to the price based unlocking, E-RADIX tokens are priced at $0.039 per token in the token sale.

READ THE RADIX ECONOMICS WHITE PAPER

The E-RADIX TOKEN

Achieving an early and a broad spread of Token distribution is essential to ensure sufficient decentralisation of the public network and that participants are incentivised as swiftly as possible from the moment of instantiation.

A RADIX ERC20 (E-RADIX) token will be released prior to the commencement of the RADIX LEDGER. The sale of the E-RADIX token is intended to promote the distribution of Stake and achieve a high degree of decentralisation prior to the release of the RADIX LEDGER (mainnet).

In addition, as ERC20 tokens are one of the most commonly issued token types, generating an ERC20 RADIX token will also facilitate faster integration into the existing DeFi ecosystem on Ethereum, infrastructure such as exchanges, and user services such as wallets, further assisting distributed stake building.

On instantiation of the RADIX LEDGER, the E-RADIX will be exchangeable 1:1 for RADIX TOKENS.

Price Based Unlocking

When the E-RADIX TOKEN is distributed, token holders will own 99% locked and 1% unlocked tokens, giving an estimated starting circulating supply of no more than 42m E-RADIX TOKENS (exclusions apply, see Economics Paper for details).

In order to improve a balance between market supply and demand of E-RADIX TOKENS, the market price of the E-RADIX TOKEN will determine how many E-RADIX TOKENS will be unlocked. The design of the UNLOCK MECHANISM is intended to promote supply and demand that tends towards equilibrium.

These 99% locked E-RADIX TOKENS will remain locked until the 1 week Simple Moving Average (SMA) of the E-RADIX TOKEN crosses the following token price milestones:

SMA Milestones % Total Unlocked Circulating Supply of E-RADIX Tokens Total Market Value of Circulating E-RADIX Tokens
NA 1% 42,000,000 NA
$0.05 5% 210,000,000 $10,500,000
$0.07 10% 420,000,000 $29,400,000
$0.09 15% 630,000,000 $56,700,000
$0.11 20% 840,000,000 $92,400,000
$0.13 25% 1,050,000,000 $136,500,000
$0.15 30% 1,260,000,000 $189,000,000
$0.17 35% 1,470,000,000 $249,900,000
$0.19 40% 1,680,000,000 $319,200,000
$0.21 45% 1,890,000,000 $396,900,000
$0.23 50% 2,100,000,000 $483,000,000
$0.25 55% 2,310,000,000 $577,500,000
$0.27 60% 2,520,000,000 $680,400,000
$0.29 65% 2,730,000,000 $791,700,000
$0.31 70% 2,940,000,000 $911,400,000
$0.33 75% 3,150,000,000 $1,039,500,000
$0.35 80% 3,360,000,000 $1,176,000,000
$0.37 85% 3,570,000,000 $1,320,900,000
$0.39 90% 3,780,000,000 $1,474,200,000
$0.41 95% 3,990,000,000 $1,635,900,000
$0.43 100% 4,200,000,000 $1,806,000,000

 

E-RADIX TOKEN Distribution

A total of 4.41Bn E-RADIX will be distributed (INITIAL SUPPLY) as both locked and unlocked tokens on the Ethereum Public Ledger. This chart shows the proposed distribution (ceteris paribus) as a % of INITIAL SUPPLY:

 

The instantiation of the RADIX LEDGER will commence the generation of NETWORK EMISSION by the RADIX LEDGER. This NETWORK emission is capped at 12Bn RADIX TOKENS over a minimum 40-year period.

It is therefore envisaged that a maximum of 24Bn RADIX TOKENS will be generated by the RADIX PROTOCOL over a 40-year period. 18.3% are to be issued as E-RADIX TOKENS on the Ethereum network, 31.6% are to be pre-allocated as RADIX TOKENS at genesis of the RADIX LEDGER, and the remaining 50% released as new NETWORK EMISSION. 

Of 12Bn tokens issued or exchangeable for RADIX TOKENS on the Radix Public Network, 2.4Bn are locked in the Stable Coin Reserve, and 4.41Bn will have already been issued as E-RADIX TOKENS, leaving 5.19Bn to be unlocked via the price based unlocking mechanism on the RADIX LEDGER (mainnet).

The breakdown of the RADIX tokens on the RADIX LEDGER can be seen below:

Further details can be found in the full economics paper.

Network Emissions

NETWORK EMISSION only commences once the RADIX LEDGER has been published and adopted by the community.

To incentivise Node Runners, the RADIX PROTOCOL periodically creates new RADIX TOKENS which are paid to all delegators who have staked tokens to Staking Nodes that have been participating in consensus. These new tokens are the NETWORK EMISSION and are earnt proportionally to the amount of Radix tokens staked. 

In the old economic model, the token emission was a percentage of the supply. This has now been updated to a maximum rate of 300m RADIX tokens per year. 

Next Steps

We are excited to be nearing the distribution of the E-RADIX ERC20 tokens. In total, a maximum of 720m E-RADIX will be sold at a price of $0.039. All tokens sold will be subject to the price based unlocking. Any unsold tokens will be re-added to the Foundation’s locked distribution. 

In the coming days, we will be releasing further information about the sale, E-RADIX distribution and the events that will be occurring after. 

If you are interested in purchasing tokens, please use this form to express your interest or click “Get Tokens” on https://radixdlt.com

Please note; We will never request you send funds to purchase tokens via telegram or any other social media platform. Please read our Token Sale Safety guide here.