RFP-46: Accelerating RDNT Vesting to Boost Emissions Reserve and RIZ APRs

Abstract

This proposal seeks to accelerate the vesting schedule for 200 million RDNT tokens allocated to the Emissions Reserve, reducing the vesting period from three years to two. This change is intended to increase token emissions to support higher APRs and attract additional liquidity to Radiant Innovation Zone (RIZ) markets. By providing more competitive APRs, this adjustment seeks to expand liquidity and drive the growth of RIZ across multiple chains.

Motivation

v3 Update

Since Radiant’s expansion to Base on July 31, 2024, the protocol has introduced 10 v3 RIZ isolated market collaterals, in addition to the 32 blue chip and stablecoin collaterals already available across Arbitrum, Base, Ethereum, and BNB Chain.

• v2 launched on Base as the fourth supported blockchain (July 31, 2024).

• v3 RIZ isolated markets went live on Arbitrum with ZRO, rsETH, and ezETH (September 13, 2024).

• v3 RIZ isolated markets launched on Base with ZRO, AERO, and MAVIA (August 26, 2024).

• PT-wstETH was added to RIZ on Arbitrum (August 30, 2024).

• GMX, gmARB, and USDY were added to RIZ on Arbitrum (September 5, 2024).

• As of this writing, v3 RIZ deployment to BNB Chain is imminent.

v3 Impact

Before examining the impact of the initial v3 feature pack, led by the RIZ isolated markets, it's important to note that the v2 expansion to Base delivered significant returns, making Base the top Radiant chain with 48% of global TVL ($124.77M of $260.65M) within just 5 weeks, peaking on September 10, 2024.

v3 launched on Arbitrum on August 13, 2024 (ZRO, rsETH, ezETH), followed by Base two weeks later on August 26, 2024 (ZRO, AERO, MAVIA). Additional RIZ collaterals were introduced on Arbitrum over the next two weeks (PT-wstETH added on August 10, 2024; GMX gmARB and USDY added on September 5, 2024).

With just a modest set of 10 RIZ collaterals gradually introduced over a 4-week period, the global TVL peaked at $266 million, up from $223 million pre-v3 (RIZ). This represents an increase of $43 million (+19.3%).

Adapting to Market Conditions

The current vesting schedule for RDNT tokens was designed when the token price was $0.30. However, as of this proposal, the price has dropped to $0.072 for various reasons, including the overall market downtrend. This decline has had a direct impact on emissions APRs, making them less competitive and reducing Radiant’s ability to attract liquidity. The Radiant Innovation Zone (RIZ), which was launched to provide high-risk, high-reward isolated markets for trending altcoins, relies heavily on competitive APRs to attract users and liquidity.

The introduction of RIZ markets has shown early promise, with notable growth in Total Value Locked (TVL). However, the suppressed APRs have led to stagnation in growth. As the RIZ markets aim to expand further, both in the number of collaterals and across additional chains, maintaining attractive APRs is crucial for customer acquisition. Accelerating the vesting schedule of RDNT tokens to the Emissions Reserve would provide a boost in emissions, helping to stabilize and grow APRs, which in turn supports liquidity depth and the overall success of RIZ.

This adjustment aligns with feedback from the community and is intended to ensure that the protocol can remain competitive in the current market environment.

Key Terms

• Furo Stream: A linear vesting stream mechanism used to distribute RDNT tokens over time, managed through smart contracts.

• Radiant Innovation Zone (RIZ): A series of isolated markets launched by Radiant to support altcoins and high-risk assets, aiming to attract liquidity by offering competitive APRs.

Specifications

1. Current Vesting Schedule: Under RFP-33, 40% of the 500 million newly minted RDNT tokens (200 million tokens) were allocated to the Emissions Reserve with a three-year linear vesting schedule, set to conclude on May 22, 2027. These tokens were intended to support APRs for future chain launches and Radiant Innovation Zone (RIZ) initiatives.

2. Proposed Adjustment: This proposal seeks to modify the vesting schedule for the 200 million tokens allocated to the Emissions Reserve, shortening the vesting period from three years to two years. The vesting will now conclude on May 22, 2026.

3. Emission Impact: By accelerating the vesting, an additional 66.6 million tokens (one-third of the total allocated to the Emissions Reserve) will be made available during the second year. This is expected to raise emissions to the RIZ markets, improving APRs and enhancing the protocol’s ability to attract liquidity.

4. Total Allocation: The acceleration of the vesting will not affect the overall allocation of RDNT tokens. The 200 million tokens earmarked for the Emissions Reserve will remain unchanged, and both vesting streams—60% to the DAO Reserve and 40% to the Emissions Reserve—will now conclude on the same date, May 22, 2026.

5. Dilution Consideration: The acceleration of emissions will result in more tokens entering circulation earlier than initially planned. This may have a dilutive effect on the RDNT token price, but it is expected that the increase in APRs will counteract this by attracting more liquidity to the protocol.

Steps to Implement

1. Modification of Vesting Stream: Within 7 days of proposal ratification, the existing three-year linear vesting stream for the 200 million RDNT tokens allocated to the Emissions Reserve will be modified to a two-year linear vesting schedule. This will require updating the Furo stream to reflect a new end date of May 22, 2026.

2. Notification of Change: Once the vesting schedule is updated, a community notification will be issued within 24 hours, informing all DAO members of the change.

3. Documentation Update: Within 14 days of proposal ratification, relevant public-facing documents, including the tokenomics overview, FAQ, and any associated governance resources, will be updated to reflect the new vesting schedule.

4. Emissions Adjustment: The emissions rate to the RIZ markets and associated vaults will be adjusted as necessary to align with the newly accelerated vesting schedule. This adjustment will ensure that APRs remain competitive but sustainable, given the increased availability of tokens.

Timeline

• Proposal Ratification: The proposal will take effect immediately upon successful ratification through governance voting.

• Modification of Vesting Stream: The adjustment to the vesting schedule will be completed within 7 days of ratification. This will involve modifying the Furo stream to reflect the new vesting end date of May 22, 2026.

• Community Notification: A notification regarding the vesting modification will be issued within 24 hours after the vesting stream is updated.

• Documentation Update: All relevant public-facing documentation, including tokenomics information and FAQs, will be updated within 14 days of proposal ratification to ensure consistency and transparency.

• Emissions Adjustment: Emissions to RIZ markets and vaults will be adjusted within 14 days of ratification, aligning with the accelerated vesting schedule to ensure sustainable yet competitive APRs.

Overall Cost/Impact

This proposal does not require additional budget allocation, as it leverages the existing RDNT token supply that was previously minted and allocated under RFP-33. The modification to the vesting schedule will primarily affect the timing of token emissions, rather than introducing new costs to the protocol.

Operational Impact

Includes minor adjustments to the vesting stream and updates to public-facing documentation, which fall within the scope of existing development and communication resources. No new hires or services are required to implement this proposal.

Market Impact

The accelerated vesting schedule will result in more RDNT tokens being emitted over a shorter period. While this may increase the circulating supply, the improved APRs and potential growth in liquidity from RIZ markets are expected to provide positive incentives for token demand, supporting the protocol’s overall market positioning.

Voting

In Favor: Support the implementation of RFP-46, agreeing with the proposed changes to accelerate the vesting schedule of RDNT tokens to the Emissions Reserve from three years to two years, with the goal of enhancing APRs and liquidity in RIZ markets.

Against: Oppose the implementation of RFP-46, rejecting the proposed changes to the RDNT vesting schedule.

Abstain: Undecided, but contributing to quorum.