Radix Foundation

The Radix Foundation is a not-for-profit organization focused on the development, promotion, and governance of the Radix public network, a decentralized ledger technology. Established in the United Kingdom, the Foundation aims to further the understanding and adoption of Radix technology through various initiatives, including education, research, and community support.

Overview

The Radix Foundation operates through a group of entities, each serving a specific purpose within the broader ecosystem. These entities include Radix Tokens (Jersey) Ltd, responsible for the issuance and management of Radix tokens; Radix Publishing Ltd, which oversees the open-source code and communication channels; and Archetype Ltd, which holds non-open-source intellectual property.

History and Formation

The Radix Foundation traces its origins to the development of the Radix distributed ledger technology by a team led by Dan Hughes and Piers Ridyard. The founders' philosophy was to decentralize all critical aspects of the network's functionality, with the goal of eventually achieving full decentralization.[2]

To facilitate the expedited delivery of the required components while adhering to legal, regulatory, and accounting considerations, the present structure of the Radix Foundation and its group of entities was established. This structure aimed to facilitate the development and deployment of the Radix network without precluding future decentralization efforts.

The Radix Foundation Ltd. was incorporated in the United Kingdom as a not-for-profit holding company limited by guarantee. Its role is to serve as a representative vehicle for providing governance for the Radix community, with the intention of transitioning to a more decentralized governance model after the launch of the Babylon mainnet upgrade.

In parallel, Radix Tokens (Jersey) Ltd. was established as a wholly-owned subsidiary of the Radix Foundation, responsible for the issuance and management of the Radix (XRD) tokens in accordance with the Jersey Financial Services Commission's requirements. This entity was critical in conducting the initial token sale and facilitating the distribution of tokens to various stakeholders.

As the development of the Radix network progressed, additional entities were formed, such as Radix Publishing Ltd., a subsidiary tasked with publishing the open-source code and managing communication channels, and Archetype Ltd., which holds non-open-source intellectual property related to the project.

Organizational Structure

The Radix Foundation operates through a group of interrelated entities, each serving a specific purpose within the broader Radix ecosystem. This structure was designed to facilitate the development and deployment of the Radix network while adhering to legal, regulatory, and accounting requirements.

Radix Foundation Ltd

Radix Foundation Ltd. is the not-for-profit holding company at the core of the organization. It is incorporated in the United Kingdom as a company limited by guarantee, with no shareholders. The Foundation's articles preclude any director or guarantor from receiving assets or benefiting from them should the company be dissolved.

Radix Tokens (Jersey) Ltd

This entity, wholly owned by the Radix Foundation, is responsible for the issuance and management of the Radix (XRD) tokens. It operates under the jurisdiction of the Jersey Financial Services Commission (JFSC) and conducts token issuance and related activities in accordance with JFSC requirements.

Radix Publishing Ltd

Radix Publishing Ltd. is a UK-based subsidiary of the Radix Foundation. Its primary role is to publish the "canonical version" of the Radix open-source ledger code, control the public GitHub repository, and manage all public-facing communication channels attributed to Radix. This entity ensures the transparency and integrity of the open-source codebase and related information dissemination.

Archetype Ltd

Archetype Ltd., another Jersey-based subsidiary, holds non-open-source intellectual property related to the Radix project. This entity likely manages and protects proprietary technologies or concepts that are not intended for open-source release.

The separation of responsibilities across these entities allows for a structured approach to managing different aspects of the Radix ecosystem, such as token issuance, open-source development, and proprietary technology, while adhering to relevant legal and regulatory frameworks.

Governance and Management

The Radix Foundation and its group of entities are governed by a board of directors responsible for strategic decision-making, oversight, and ensuring compliance with legal and regulatory requirements.

Board of Directors

As of early 2024, the board of directors for the Radix Foundation Ltd. consists of Daniel Hughes, Piers Ridyard, Lindsay Tan Lim, and Lord Godfrey John Cromwell. Hughes and Ridyard are the co-founders of the Radix project and significant shareholders in RDX Works Limited (previously Radix DLT Limited), the core developer of the Radix network source code.

Recent Appointments In late 2023, the Radix Foundation welcomed two new non-executive directors to its board - Lindsay Tan Lim and Lord Godfrey John Cromwell. These appointments aimed to strengthen governance and oversight by bringing fresh perspectives and expertise to the board.

Governance Processes

All budgetary actions and major decisions related to Radix Tokens (Jersey) Ltd. require majority approval from its board of directors, which includes Andy Jarrett, Lindsay Bracegirdle, James Cunningham-Davis, Piers Ridyard, and Dan Hughes.

The Radix Foundation has implemented strict internal governance processes to prevent insider trading and ensure the responsible use of funds. Employees and major fund recipients, such as RDX Works Ltd., are required to obtain documented permission from the board before trading any Radix ($XRD) tokens.

Radix Public Network and Token

The Radix Public Network is a decentralized ledger technology developed by the Radix Foundation and its associated entities. It is built on a novel consensus algorithm called Cerberus and utilizes a unique asset-oriented architecture.

The network's native cryptocurrency, Radix ($XRD), plays a crucial role in powering the ecosystem and incentivizing participation. $XRD is used for paying transaction fees, staking, and facilitating various decentralized applications (dApps) and services built on top of the Radix Public Network.

Initial Token Distribution

According to the Radix Economics White Paper released in October 2020, the initial distribution of XRD tokens was as follows:

• Founder Reserve: 2.4 billion XRD retained by RDX Works Ltd. (formerly Radix DLT Ltd.)
• Stable Coin Reserve: 2.4 billion XRD indefinitely locked by Radix Tokens (Jersey) Ltd.
• Radix Tokens (Jersey) Ltd.: Approximately 3.36 billion XRD allocated for development, security, subsidies, incentives, and operational expenses.
• Token Sale, Community, and Liquidity Incentive allocations made up the remainder.

Token Holdings and Management

As of February 2024, Radix Tokens (Jersey) Ltd. held approximately 2.21 billion XRD, representing a significant financial foundation to support the growth and development of the Radix Public Network. These holdings are allocated across various buckets, including development, grants, liquidity programs, and operational expenses.

To sustain its initiatives, Radix Tokens (Jersey) Ltd. maintains a robust reserve of assets, including fiat currency, stablecoins, and other cryptocurrencies. It works with regulated entities and strategic over-the-counter (OTC) partners to manage the sale of XRD tokens, aiming to minimize market impact and support ecosystem growth.

Funding and Expenditure

The Radix Foundation and its entities have relied on various funding sources to support the development, deployment, and growth of the Radix Public Network.

Sources of Funding

One of the primary sources of funding for the Radix ecosystem has been the proceeds from the sale of Radix ($XRD) tokens. During the initial token sale in November 2020, Radix Tokens (Jersey) Ltd. received approximately 3.36 billion $XRD tokens, intended to cover development costs, security measures, network subsidies, developer incentives, awareness programs, liquidity programs, and other operational expenses.

Expenditure Breakdown

Treasury Management Strategy

To responsibly manage its token holdings and fund ongoing operations, Radix Tokens (Jersey) Ltd. works with regulated entities and strategic over-the-counter (OTC) partners. These partners are contractually obligated to implement market impact minimization strategies, such as placing orders away from the current market price, to avoid significant price movements.

Additionally, Radix Tokens (Jersey) Ltd. pauses all treasury management activities during major announcements, milestones, and periodically to ensure market neutrality of the strategies employed.

Initiatives and Projects

The Radix Foundation and its entities have supported numerous initiatives and projects aimed at fostering the growth and adoption of the Radix Public Network and its ecosystem.

Key Projects

One of the primary focuses has been the development of the core Radix technology stack, including the Radix Engine, the Scrypto programming language, and various wallets and critical services. These components lay the foundation for a thriving decentralized economy on top of the Radix network.

Ecosystem Support

In addition to technology development, the Radix Foundation has allocated significant resources to support the broader Radix ecosystem. This includes providing grants and funding programs for developers, entrepreneurs, and projects building on the Radix Public Network.

For instance, in early 2024, Radix Tokens (Jersey) Ltd. provided a grant of $10 million worth of XRD tokens towards the launch of Project Ignition, a liquidity campaign aimed at accelerating the growth of the Radix ecosystem. Additionally, an allocation of 25 million $XRD (worth over $1 million at the time of announcement) was made available for developers and entrepreneurs building on the network.

Community Initiatives

The Radix Foundation has also supported various community initiatives, such as the Dev Swarm events, which brought together over 250 developers from across Europe for a shared Scrypto learning experience. Other initiatives include attending and hosting conferences, growing the Radix social media presence, and fostering a vibrant community around the project.

Licensing and Open Source

The Radix Foundation and its entities have embraced open-source development as a key pillar of their approach, promoting transparency, collaboration, and community engagement.

Radix Licenses

Radix Publishing Ltd., a subsidiary of the Radix Foundation, has created a set of licenses to facilitate the distribution of software and documentation, as well as to encourage regular contributions from individuals and corporations.

The primary license used is the Radix License 1.0, which is based on the Apache License 2.0 but with additional provisions to address the complexities of open-source, permissionless distributed ledgers. This license aims to protect the Radix community and ensure the creation of reliable and long-lived software products through collaborative open-source development.

Open-Source Development

All software and documentation published by Radix Publishing Ltd. or any of its projects are licensed under the Radix License 1.0, unless explicitly stated otherwise. This approach ensures transparency and promotes community participation in the development of the Radix Public Network and its associated technologies.

By embracing open-source development and fostering a collaborative community, the Radix Foundation aims to create a robust and decentralized ecosystem around the Radix Public Network.