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Start Here! Radix Tokens and Tokenomics

Tokens, and their resulting economics, or “tokenomics”, are central to the functioning of any public, decentralized and permissionless blockchain or DLT.

This article summarizes the tokens and tokenomics of Radix, linking to more in depth articles where relevant.

RADIX token (XRD) on the Radix Public Network

The RADIX token is the native token of the Radix Public Network, with ticker XRD.

Purpose: XRD is used to secure the Radix Public Network by staking it as part of Radix’s Delegated Proof of Stake system. XRD is also the only token that is used to pay transaction fees on Radix, 50% of the base network fee are burnt, i.e. the tokens used to pay the fee are destroyed by the Radix Protocol. See How do Transaction Fees Work on Radix for more.

Supply & Allocation: XRD has a maximum supply of 24Bn tokens:

  • 12Bn was allocated at the genesis of the Radix Public Network. 9.6Bn of these tokens are unlocked and part of the circulating supply; 2.4Bn are indefinitely locked in the stable coin reserve.
  • 12Bn XRD is being minted by the Radix Protocol as network emission to reward stakers and validators over an approximately 40 year period. Network emission commenced with the genesis of the Radix Public Network in July 2021.

Circulating supply

Total supply

Maximum supply

9.6Bn XRD + network emissions to date

(The 2.4Bn Stable Coin Reserve is locked and not included in circulating supply)

12Bn XRD + network emissions to date

24Bn XRD after approximately 40 years

For more details on XRD please see: What is the XRD token?

For a a full breakdown of the allocation of XRD tokens, please see: How was the XRD token allocated?

E-RADIX token (eXRD) on the Ethereum network

The E-RADIX token is the wrapped representation of XRD on Ethereum, with the ticker eXRD. 

Purpose: Just as wBTC allows for a wrapped form of Bitcoin to be used in Ethereum’s DeFi ecosystem, eXRD allows for a wrapped form of Radix’s XRD token to be used in Ethereum’s DeFi ecosystem.

Supply & Allocation: Each eXRD is backed 1:1 by an XRD held at a secure third-party custodian. The circulating supply of eXRD on Ethereum therefore changes, as it depends on how much XRD is deposited and wrapped into eXRD.

The maximum supply of eXRD can therefore never exceed the amount of XRD in circulation. The circulating supply of eXRD will always be at or below the circulating supply of XRD.

For more details on eXRD please see: What is the eXRD token?

Bridging between XRD and eXRD

XRD and eXRD are exchangeable 1:1 via exchanges such as Bitfinex and bridges such as Instabridge

Other Tokens on Radix

As part of the native asset functionality provided by Radix Engine anyone can easily create their own token by submitting a transaction to the Radix network. Expect there to be a multitude of third party tools that allow users to easily create their own tokens in this way. Each of these tokens will have their own unique tokenomics independent of XRD.

Further reading: