This system is enabled by our Scrypto programming language for DeFi dApps and the Radix Engine v2 that sits behind it. Combined with Components and Blueprints and the Blueprint Catalog, the Radix Developer Royalties system will create an open, decentralized and autonomous marketplace to incentivize developers to build ever-evolving layers of smart contracts for DeFi.
The big picture
One of Satoshi Nakamoto’s key insights was in creating a cryptoeconomic system to incentivize a self-perpetuating, self-governing, and self-secured decentralized form of money - Bitcoin.
Radix is taking that concept one step further. In addition to creating a cryptoeconomic system to incentivize decentralized network security, we’re building a cryptoeconomic system to decentralize and incentivize development activity that improves the network by making it more useful to users and other developers. In short, this is done by allowing developers to set their own small incremental royalties on components and blueprints that they deploy to the Radix Public Network. These royalties are paid on a pure per-transaction basis so that any code that contributed to making that transaction possible may share in the value created for users and other developers.
Through this system, Radix is creating additional opportunities for the first developers who contribute to the network and providing longer-term incentives as the system grows in complexity and scope. Unlike a traditional development fund, which is finite and often leads to developers not focusing on real-world utility, the Radix Developer Royalties system provides ongoing revenue that grows with the ecosystem, is baked into the decentralized Radix Protocol itself, and incentivizes code and apps that the community truly values.
More details on Scrypto and REv2 will be announced later in 2021, with more information on the Developer Royalties system to follow in 2022. For now, get on our developer mailing list to make sure to get the latest updates.