Radix ($XRD) Babylon Launch | September 20 2023
Radix is proof-of-stake smart contract network that is built specifically for DeFi with the goal of making it easier for developers to launch DeFi projects.
On September 27, Radix will launch their Babylon mainnet upgrade that will enable dApps to be deployed. According to the CEO Piers Ridyard, there are over 50 projects at various stages of maturity, with many ready to launch on the 27th.
The circulating supply of XRD tokens is 10.3B with a static annual inflation of 300M which currently equates to a 3% annual inflation rate.
Currently, 100% of network transaction fees are burned, though the only transactions possible at the moment are send, stake, and unstake.
Once the Babylon mainnet goes live, 50% of fees will go to validators and 50% of fees will be burned.
The premise is twofold:
- Hype around the Babylon mainnet launch may cause the token price to rise.
- With several projects going live immediately (lending/borrowing, DEXes, etc.) there should be a large increase in the amount of transactions, thus increasing the amount of XRD tokens burned per day, which may have an impact on the XRD inflation rate.
We are in the midst of a bear market, and on-chain liquidity is sparse. Launching a new DeFi ecosystem in these conditions may be difficult, and we could see a disappointingly low amount of money flow into the XRD ecosystem. Furthermore, the competitive advantage of Radix is being developer friendly with their scrypto programming language, however, there does not seem to be any unique or proprietary functionality on Radix. In other words, it will be another chain on which developers can build the same DeFi solutions that already exist, they will just be more user-friendly.
The play here is to look for a speculative pump into the September 27 catalyst date in a ‘buy the rumor, sell the news’ fashion.