Radix

The history of Radix (EXRD) began with the launch of e-Radix (EXRD) on October 20, 2020. e-Radix was introduced as a means to distribute tokens widely before staking began as part of Radix's Delegated Proof of Stake system. This strategy aimed to further decentralize the Radix Public Network. The eXRD token has the same functionality as the native cryptocurrency of the Radix network, XRD, and is used to pay transaction fees, incentivize validators, and access various services within the ecosystem.

Radix itself is a tier-1 decentralized ledger technology (DLT) protocol designed to serve DeFi applications with a highly scalable and composable 'Cerberus' consensus design. The platform utilizes a sharded architecture that allows for parallel processing of transactions, increasing the network's throughput and speeding up transaction confirmation times.

The native token, XRD, was introduced in July 2021 as part of the genesis of the Radix Public Network. XRD is used for staking and paying transaction fees, and it has a maximum supply of 24 billion tokens. The token's value is subject to market fluctuations, and its price is determined by the demand and supply dynamics in the market.

e-Radix gained attention in the cryptocurrency community for its unique approach to solving scalability and speed issues faced by other digital currencies like Bitcoin and Ethereum. Users can acquire eXRD tokens through exchanges, mining, or staking, which involves holding eXRD tokens in a designated wallet to support the network's operations and earn rewards in return.

Radix, with its native token XRD, operates as a decentralized public ledger, facilitating secure and transparent transactions within its ecosystem. The XRD token plays a crucial role in maintaining the security and integrity of the Radix Public Network through its Delegated Proof of Stake (DPoS) system and transaction fees.

In the DPoS system, XRD token holders can participate by staking their tokens to secure the network. This process involves delegating tokens to validator nodes, which are responsible for maintaining the integrity of the network. The top 100 validator nodes with the most delegated stake are chosen by the Radix Protocol to form the validator set. This mechanism ensures that the network is protected from Sybil attacks and maintains a high level of security.

XRD tokens are also used to pay for transaction fees on the Radix Public Network. These fees are primarily intended to prevent spam transactions and maintain the efficiency of the network. Notably, 50% of the base network fee is burned, meaning the tokens used to pay the fee are destroyed by the Radix Protocol. This mechanism helps maintain the value of XRD tokens by reducing the circulating supply.

The XRD token has a maximum supply of 24 billion tokens. At the genesis of the Radix Public Network, 12 billion tokens were allocated, with 9.6 billion tokens fully unlocked and circulating, and 2.4 billion tokens indefinitely locked in the stable coin reserve. The remaining 12 billion tokens are being minted by the Radix Protocol over an approximately 40-year period as network emission rewards to incentivize stakers and validators.

Radix also has a wrapped token called eXRD, which represents XRD on the Ethereum network. eXRD allows XRD tokens to be used within Ethereum’s DeFi ecosystem, providing greater flexibility and interoperability. eXRD tokens can be exchanged for XRD tokens at a 1:1 ratio via bridges like Instabridge, ensuring that both tokens hold the same utilities and value.

In addition to staking and transaction fees, XRD tokens can be used within the Radix DeFi ecosystem as collateral in lending protocols or as an intermediary facilitating exchange between other tokens. This versatility makes XRD a fundamental part of the Radix Public Network.

The Radix Xi’an release is expected to remove the limit of 100 validators, allowing for an unlimited number of validators to participate in the DPoS system. This change will further enhance the security and decentralization of the Radix Public Network.

Overall, Radix and its XRD token are designed to provide a secure, decentralized, and scalable platform for DeFi applications, with a strong focus on tokenomics and the long-term sustainability of the network.

The token Radix (eXRD) has several strengths:

• Wrapped Representation: eXRD is a wrapped representation of XRD on Ethereum, allowing users to access the Radix ecosystem within the Ethereum DeFi ecosystem. This enables the use of XRD in Ethereum-based DeFi applications, expanding its utility and reach.

• 1:1 Exchangeability: eXRD can be exchanged 1:1 with XRD via Instabridge or exchanges like Bitfinex, ensuring that users can seamlessly switch between the two tokens without any loss of value.

• No Expiration: There is no expiration date for eXRD tokens, allowing users to exchange them for XRD tokens at any time, providing flexibility and convenience.

• Decentralization: The existence of eXRD tokens helps decentralize the Radix Public Network by allowing users to participate in the Ethereum DeFi ecosystem while still being connected to the Radix network.

• Security: eXRD tokens are backed 1:1 by XRD tokens held at a secure third-party custodian, ensuring the integrity and security of the tokens.

• Composability: eXRD tokens enable the integration of Radix with other Ethereum-based DeFi applications, enhancing the overall composability of the ecosystem.

• Scalability: By allowing users to access the Radix ecosystem through Ethereum, eXRD tokens contribute to the scalability of the Radix network.

• Tokenomics: The tokenomics of eXRD are designed to maintain a balance between the incentives for maintaining the project and the distribution of tokens, ensuring a healthy and sustainable ecosystem.

These strengths make eXRD a valuable and versatile token within the Radix ecosystem.

Radix (EXRD) faces several financial risks that investors should be aware of. These risks include:

• Risk of Devaluation: Radix has a high risk of devaluation, with a more than 66% chance of experiencing financial distress in the next few years.
• Price Volatility: The cryptocurrency's price can be highly volatile, with significant changes in value over short periods, making it a high-risk investment.
• Liquidity Risks: Radix's liquidity management and financial exploits can be vulnerable to gameable lapses in protocol logic, pool composition, or oracle pricing mechanisms, which can lead to significant financial losses.
• Execution Risk: There is a risk that unforeseen design flaws in the system could arise, impacting the project's success.
• Network Effects: The project's comprehensive system design may lead to a lag in network effects compared to other established alternatives, making it more challenging to gain traction.
• Regulatory Risks: The cryptocurrency market is subject to regulatory risks, which could impact the value of Radix if stricter regulations are implemented.

These risks highlight the importance of thorough research and risk assessment before investing in Radix.

• Ben Far: Head of Partnerships, with a professional background in governance, audit, risk management, and regulation of financial technology. He works to attract key partners to build on or integrate with Radix, including DeFi dApps, exchanges, wallets, oracles, custodians, and more.
• Mikael Perttula: Head of Community, with a background in marketing and customer-facing roles. He focuses on building and engaging with the community, recognizing its importance in the long-term success of the project.
• Dan Hughes: Founder and CTO, a self-taught programmer with extensive experience in decentralized technology. He leads the technical development of Radix.
• Piers Ridyard: CEO, contributing legal and entrepreneurial expertise to the project.