Token Holder Insights: Reimagining the Stablecoin Reserve | The Radix Blog

The feedback will be weighted according to the time-weighted average amount of XRD or equivalents held, including at least LSUs and LSULP, during the consultation timeframe. If feasible, we may consider additional XRD equivalents from certain liquidity pools, although this is not a certainty.

Upon concluding the consultation, the Foundation will release:

• Aggregated response results
• A detailed account of support versus opposition (with cryptographic validation)
• The relevant weighting based on XRD (or equivalents)
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A simple majority of the weighted responses will determine community sentiment among the Radix participants.

To maintain a fair representation of XRD token holder views, the Foundation (along with its subsidiaries) will refrain from contributing any XRD it controls or any third-party-managed XRD. Additionally, any entity with over 1 billion XRD and their associated accounts will also be excluded from participation.

Proposal Overview

In summary, the Foundation’s proposal includes:

• Allocating 1 billion XRD to develop points-based multi-season incentive programs aimed at enhancing on-chain liquidity and usage.
• Establishing a 1 billion XRD Growth Fund to support strategic initiatives (e.g., Tier 1 listings, bridges, venture capital backing).
• Reducing the emission schedule by 20 years, which would lower the maximum supply by approximately 6 billion XRD.
• Retaining the remaining 400 million XRD in reserve for future extension or potential burn.

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Verification of Signaling

Whenever a user engages in the consultation, the application compiles a standardized message string reflecting their choice. This message is hashed using BLAKE2b and submitted as a ROLA challenge to the Radix Wallet.

The wallet signs the hash with the private key of the chosen account, generating a ROLA proof that the application receives. This proof is verified server-side by checking the signature against the message and the public key of the account. If the signature is valid, it is logged as a confirmed, timestamped indication associated with the account.

This method ensures the Foundation can substantiate how each account signaled without disclosing private keys or necessitating on-ledger actions.

Advantages of ROLA versus On-Ledger Transactions

Radix Off-Ledger Authentication (ROLA) offers a secure mechanism for users to demonstrate ownership and control of an account without performing on-ledger transactions. This is accomplished by allowing users to sign a designated message (like their consultation decision) with their wallet, thus generating a cryptographic proof of intent.

For this consultation, ROLA provides multiple benefits compared to on-ledger voting:

• No Transaction Fees: Participants can contribute their opinions without incurring gas or transaction costs, facilitating wider involvement.
• No Ledger Clutter: As no entries are made on the ledger, it minimizes the risk of adding unnecessary voting transactions.
• Private Yet Verifiable: While the user’s input is kept off-ledger, it remains backed by a verifiable cryptographic signature, ensuring authenticity while maintaining wallet privacy.
• Proven Security: ROLA is seamlessly integrated into the Radix Wallet and dApp Toolkit, employing established cryptographic protocols (like BLAKE2b hashing and EdDSA signing) to confirm that all proofs are genuine and secure.

These features make ROLA particularly suitable for consultations, surveys, and community signaling, especially where token weighting and accessibility are vital.

For more details on ROLA, visit: docs.radixdlt.com/docs/rola-radix-off-ledger-auth‍

Upcoming Actions

The Foundation believes that given Radix’s technology is now ready for production, this is an opportune moment to take decisive action and focus on growth. The consultation represents an opportunity for community members to engage in this strategic direction.

Further details and access to the consultation application will be made available prior to May 9th.

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