Radix, a high-performance Layer 1 blockchain, is reallocating 1 billion XRD from its treasury to initiate a two-year community incentives program focused on enhancing ecosystem engagement and refining long-term tokenomics—distinguishing itself as a purposefully crafted “antidote to airdrops.”
Announced on April 14, this new initiative will divert funds from a previously suggested stablecoin project to support what Radix (XRD) describes as a multi-season, points-based rewards initiative aimed at encouraging meaningful participation. Users will accumulate points by holding or staking XRD, providing liquidity, performing DEX swaps, and participating in lending and borrowing activities. Engagement with NFTs and decentralized applications (dApps) will also merit rewards.
“Participants will earn points for meaningful engagement,” stated Dan Hughes, CTO and founder of Radix. “Our goal is to foster deep and sustained participation in the ecosystem rather than just passive token accumulation to inflate our market cap.”
Radix is moving away from typical airdrop strategies, which it considers unsustainable and likely to attract short-term “mercenary” users.
The structure of the campaign is intended to cultivate strong liquidity while establishing a more solid groundwork for dApps and developers in the ecosystem.
Reallocated treasury funds to drive user growth
Hughes characterized the reallocation as a strategic shift that is in better harmony with Radix’s current path of growth.
“What’s the alternative?” he asked. “Let the 2.4 billion XRD sit idle while rivals attract users and monopolize liquidity? Or burn it, hoping for a fleeting surge? The decision is clear: repurpose this reserve and establish Radix as the foundation for the next generation of DeFi.”
This announcement precedes the rollout of Radix’s Hyperscale testnet, which aims for an impressive throughput of 1 million complex transactions per second, setting a scalability benchmark that far exceeds what current Layer 1 blockchains have achieved in real-world scenarios.
According to the press release, this upcoming milestone represents the “only true path to Hyperscale in the industry.”
To support this initiative, Radix’s newly launched incentives program is crafted to quickly onboard more users, capital, and liquidity, positioning the network as a formidable player in the forthcoming wave of DeFi adoption.