- What is a RAD token?
The RAD Token powers Centrifuge, providing the framework needed to run the
platform without reliance on a single point of failure, including the Centrifuge team or
company, and to accelerate its utility. To accomplish this, Centrifuge leverages the
cryptoeconomic primitives of a native token called Radial (RAD), a Nominated-Proof-of-Stake
consensus algorithm that employs Radial to stake value, rewards for Centrifuge adoption, and
an on-chain governance mechanism that empowers Radial holders to guide the development
- Tokonomics of RAD?
The token supply of RAD will increase in the short term as it is minted in order to pay for chain
security, as well as to reward Centrifuge adoption. The current yearly mint rate of the token to
reward and incentivize chain security through native Validators and Nominators is 3% of the
current token supply. Additionally, tokens are minted in order to reward participation in Tinlake
pools by both Asset Originators and Investors. Governance will re-evaluate these reward rates
on a regular basis, adjusting the mint rate down as the inherent utility of the network becomes
sufficient to draw in users.
A portion of the transaction fees will be allocated to an on-chain Treasury in control of RAD
token holders. This Treasury may choose between using the tokens to fund development of the network or burning the tokens. As network growth slows in the long-term, this burning
mechanism will eventually serve to balance the total supply of the token over time, and allow
token holders to control inflation of the value of the token.
3 ) RAD TOKEN DISTRIBUTION
REWARDS,WORLOCK,VALIDATORS - 2.4%
Foundation - 48.8%
Team and Investors - 48.8
The initial Radial Token Generation Event was executed by the Centrifuge Network
Foundation. The initial distribution created 400,000,000 RAD, which was distributed to the
Foundation and initial contributors, including; the core team, investors, and validators. Since
genesis, 15.95 million additional tokens have been minted as rewards for adoption
- Radial Utility
Radial is more than a traditional network token. Because basic functionality is delegated to
Polkadot, the RAD token can be used for Centrifuge-specific utility. RAD functions differently,
and is used for both standard network functions such as chain security and transaction fees - as
well as unique utility including on-chain governance, a money market, and credit insurance.
Users have incentives to participate in the network through Radial token rewards. As a result,
the users of Centrifuge are directly empowered to operate, control, and gain value from the
Money Market for Investors - future utility
Centrifuge Chain will provide a mechanism for Tinlake pools to obtain liquidity through a
native, on-chain money market. The RAD token functions as the gatekeeper for assets to this
money market as well as empowering its holders with governance to set risk parameters for
different DROP tokens. This functionality is still in the development phase.
Downside Protection to Investors - future utility
Investors in the Tinlake pools will be able to access on-chain insurance paying fees to an
insurance DAO. This insurance DAO has RAD staked by members that serves as a downside
protection. This protects Tinlake pool assets and further minimizes trust within the system
allowing the risk of one asset class to be hedged against the pooled risk of all assets.
RAD holders participate in governance through on-chain voting. Token holders have the ability
to make decisions to upgrade the chain, including to add new functionality, or amend the fee
structure. This includes control over how the chain implements the Tinlake functionality such as
risk models, liquidity provision, and reputation for participating entities. RAD holders can also
vote to distribute funds through grants for new features or as protocol rewards.
Transaction fees are paid in RAD by users for: anchors, NFT minting, Tinlake financing
transactions, and many more functionalities to come. A percentage of transaction fees will go
to an on-chain Treasury controlled by RAD holders, and the remainder will be distributed to
collator nodes. The Treasury automatically burns any surplus not used for on chain grants and
other expenses (such as the parachain slot) on a regular basis.
Considering the above points,one can surely say that the deflationary nature of the token after some adoption will create a huge demand for the rads and to add to the tech developed by the team the usecase of TIN and DROP are going to revolutionarise the space and will create a real value to the system giving rise to huge demand for rad tokens.
One can say one day after instituions realise the importance of centrifuge and RAD,It will definately be the top 10 coin by market cap by 2022.
Considering this we can say that each token can be of min. 115$ - 200$ .
Please dont forget to like.
Cheers.RAD to the moon.