Radix, a high-performance Layer 1 blockchain, has put forth a proposal to reallocate 1 billion XRD from its treasury into a two-year community incentives program aimed at enhancing ecosystem engagement and improving tokenomics. This move is a deliberate shift away from traditional airdrops towards a more sustainable and meaningful approach.
The initiative, announced on April 14, will repurpose funds from a previously planned stablecoin project to support a multi-season, points-based rewards program. Participants can earn points by holding or staking XRD, providing liquidity, executing DEX swaps, and engaging in lending and borrowing. Additionally, activities such as NFT interaction and dApp usage will also qualify for rewards.
Dan Hughes, CTO and founder of Radix, emphasized the importance of incentivizing meaningful activity within the ecosystem rather than promoting passive token hoarding. This approach aims to foster deep and sustained engagement while building robust liquidity and supporting dApp development.
By reallocating treasury funds towards driving user growth, Radix is aligning its strategy with its current growth trajectory. Hughes highlighted the need to repurpose the reserve in order to compete with other platforms in onboarding users and dominating liquidity flows. The upcoming Hyperscale testnet rollout, targeting a throughput of 1 million complex transactions per second, is a key milestone for Radix in establishing itself as a leader in the industry.
The proposed incentives campaign is designed to accelerate user onboarding, attract more capital and liquidity, and position Radix as a prominent player in the next wave of DeFi adoption. By focusing on sustainable growth and meaningful engagement, Radix aims to establish itself as the home of the next generation of decentralized finance.