KEY TAKEAWAYS
- The Radix Foundation launches a $25,000-per-month ecosystem fund to enhance visibility and liquidity of native assets.
- The fund allocates 70% to a weighted token index of top 20 ecosystem tokens and 30% to a randomly selected top-50 token.
- All transactions will be transparent, conducted from a public wallet, with tokens held for at least six months to ensure stability.
- This initiative aims to foster growth and liquidity, making Radix an attractive ecosystem for developers and projects.
The Radix Foundation has announced the launch of a $25,000-per-month ecosystem fund aimed at purchasing and holding native assets within the Radix ecosystem. This initiative is designed to enhance visibility, improve liquidity, and demonstrate the Foundation’s commitment to the Radix ecosystem.
The fund’s monthly allocations will be divided into two parts: 70% will be directed towards a weighted token index of the top 20 ecosystem tokens, excluding wrapped assets, XRD, and the Cassie token. The remaining 30% will be invested in a randomly selected top-50 ecosystem token. Both the token selection and the purchase date will be randomized to prevent front-running, using a process defined by Radix founder Dan Hughes.
How the Fund Operates
Starting in December 2024, the fund will allocate $25,000 each month, with the purchase date chosen randomly. All transactions will be conducted from a public wallet, ensuring full transparency. Tokens acquired through this fund will be held for a minimum of six months to promote stability and long-term growth.
This initiative follows the success of the Radix Ecosystem Fund, which provides grants to decentralized application (dApp) projects on Radix. By creating consistent demand for ecosystem tokens, the new fund aims to foster a growth environment for native assets, benefiting developers and projects while making Radix an attractive ecosystem for long-term participation.
Commitment to Growth and Liquidity
The Radix Foundation’s financial backing underscores its dedication to empowering builders and innovators within the Radix community. This support encourages new projects to launch on Radix and reassures existing projects of their value within the ecosystem.
Liquidity is crucial for healthy markets, and by purchasing ecosystem tokens monthly, the fund increases market activity and depth. This makes the assets more viable for both retail and institutional users. With the upcoming addition of Flash Liquidity and multiple newly wrapped assets, bolstering the native assets in the ecosystem is vital to ensuring trade flow moves into these assets as well.
Looking Ahead
Transparency is a key aspect of this initiative. The wallet address will be publicly available, and there will be monthly updates detailing the fund’s purchases and activities. The first allocation is set to occur in December, with further details on the randomization process to be explored in a future blog post.
For more information, the Radix Foundation’s announcement can be found here.
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