- In order to onboard developers onto Radix it needs to be successful (=noticeable)
- To be noticeable Radix needs to have relatively high marketcap
- In order to onboard businesses onto Radix it needs to be battle tested (=time)
- To have high marketcap and survive initial stages Radix needs to onboard high risk investors first
- High risk investors got used to huge risks and probability to loose all investment, but only in case they get returns according to the risk they take
- Part of crypto investors will not invest in Radix due to low returns (because of price stabilization mechanism)
- Some part of crypto investors will not invest in Stage 1 (especially the latest week), because of high risk of massive sell off at Stage 2 from Genesis holders and uncertainty regarding how much redistributable tokens they will receive in Stage 1 from forecoming investors.
- Insert a new intermediate Stage between Stage 1 and Stage 2 with a free floating XRD
- In Stage 3 (former Stage 2) convert XRD at any given price into equivalent number of XRD’ tokens (i.e. 1 XRD at 20$ to 20 XRD’ at 1$)
- Add additional changes to Stage 1 and former Stage 2 to be compatible with a new Stage 2
- Rework of Stage 1
- Rework of Stage 2
Stage 1 - Technical period:
- Remove the existing Token redistribution mechanism
- 95% of XRI tokens go to the Reserves (adjustable)
- 5% of XRI tokens are returned back to investor’s wallets to pay for future transaction fees at new Stage 2, when they buy XRD (adjustable)
- For new investors you can implement a Bonus system instead of existing Token redistribution mechanism: descending linear function from 50% of additional XRD for each $ (XRI) invested to 10% within 6 months period, and from 10% to no less than 5% over the next n months from there (adjustable)
- Some % of XRI tokens may go to the Foundation
- Some % of XRI tokens may go to Nodes which process transactions
- The Bonus system creates certainty of how much tokens each individual will receive upon his investment (versus current Token redistribution mechanism)
- Foundation may receive XRI, which is more useful for development costs than XRD, I believe
New Stage 2 - Onboarding high risk investors:
- XRD is not tied to XRI, but floats freely (no Pmin, Pmax)
- Transactions fees are paid in XRI (which are received by investors in Stage 1)
- 20% of transaction fees go to the DEX to buy XRDs at current price and burn them (adjustable)
- Vesting for the Genesis tokens: unlock equal parts of tokens every month during next 6 months starting from month 1 end (adjustable)
- Of cource, free floating XRD is the opposite of what Radix tries to achieve (price stability), but to initially bootstrap the platform and onboard high risk investors, in my opinion, it can be implemented for some period of time, which is a better solution in contrast to 2 (or 3, if we count XRI) token system with one coin being stable and the other one with a fixed supply. This will also make most of the investors happy, because they are more familiar with free floating price mechanism. Onboarding businesses in early stages is a difficult task, noone knows what risks awaits you, but early investors will take it with proud Another great thing about it is if you time new Stage 2 launch accuratly, we can catch next possible bull run and onboard lots of investors and as we will be coming close to a following huge dump, like the one we have now (from early 2018), we can switch to a Price Stabilizing mechanism (Stage 3) and onboard them even more. Win-win. In my opinion, next bull run will start after Bitcoin halving (which is expected somewhere in may 2020), so this may be a great opportunity. And one more advantage for a free floating XRD is we won’t have to think about fixed supply Radix copycats.
- Businesses which will risk to use Radix early will still be paying low fees (in XRI)
- Some % of transaction fees will create buying pressure for XRD at the DEX, which will create little FOMO (inspired by @rotane’s proposal)
- Vesting is a great tool to mitigate the risk of huge sell off by Genesis holders for new investors buying XRD at Stage 1 and is better, IMO, than just locking their XRDs up.
New Stage 2 may last for quite a long time. In the mean time the Radix team will be figuring out what to do next. My proposal for Stage 3 (formly Stage 2) is the one below.
Stage 3 - Onboarding businesses and Price stabilization (formly Stage 2):
- Convert all holders’ XRD to XRD’, where XRD’ = XRD * avg_XRD/XRI_price_for_period_T
- Set Price Floor (Pmin) and Price Ceiling (Pmax)
- Implement existing Token redistribution mechanism
- Transaction fees are paid in XRD (not XRI). Set fees at 0.01 XRD.
Stage 4 - Mature growth (formly Stage 3):