Radix, a high-performance Layer 1 blockchain, has proposed reallocating 1 billion XRD from its treasury into a two-year community incentives program aimed at deepening ecosystem engagement and improving long-term tokenomics—positioning itself as a deliberate “antidote to airdrops.”
Editor’s note: This article has been updated to reflect that the 1 billion XRD community incentives program is a proposal and not a confirmed launch; crypto.news apologizes for the earlier mischaracterization.
Announced on April 14, the new initiative will redirect funds from a previously proposed stablecoin project to support what Radix (XRD) describes as a multi-season, points-based rewards campaign designed to incentivize meaningful activity. Participants will earn points by holding or staking XRD, providing liquidity, executing DEX swaps, and engaging in lending and borrowing. NFT interaction and dApp usage will also qualify for rewards.
“Users will earn points based on meaningful activity,” said Dan Hughes, CTO and founder of Radix. “We want to ensure deep and sustained ecosystem participation instead of just passive token hoarding to bump up our market cap.”
Radix is distancing itself from traditional airdrop tactics, which it sees as unsustainable and prone to attracting short-term “mercenary” users.
If approved, the campaign’s structure would aim to build robust liquidity while creating a stronger foundation for dApps and developers within the ecosystem.
Reallocated treasury funds to drive user growth
Hughes framed the reallocation as a strategic pivot that better aligns with Radix’s current growth trajectory.
“What’s the alternative?” he said. “Do nothing with the 2.4 billion XRD while competitors onboard users and dominate liquidity flows? Or burn it, and hope for a short-term flash mob? The choice is clear: repurpose this reserve and make Radix the home of the next generation of DeFi.”
The announcement comes ahead of Radix’s Hyperscale testnet rollout, which targets a sustained throughput of 1 million complex transactions per second, a scalability benchmark far beyond what current Layer 1s have demonstrated in production.
According to the press release, this upcoming milestone represents the “only real path to Hyperscale in the industry.”
To support this push, Radix’s proposed incentives campaign is intended to rapidly onboard more users, capital, and liquidity, positioning the network as a serious contender in the next wave of DeFi adoption.
