How to make Radix deflationary?

I’m aware that behind this question there’s a lot of math and numbers, I also tried to learn more by looking at the statistics from the ledger on caviarnine,

Immagine 2022-06-09 184842

but I was wondering if there’s someone more experienced than me that can provide some context to this.

Probably not exactly what you asked, but the way to actually make Radix deflationary is to build a lot of dApps on Radix which then encourage more transactions so that the XRD is burned at a faster pace.

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Just imagine: every DEX, every swap, generates one or more transactions. Every participation in a prediction or decision with DELPHIBETS generates transactions. NFT minting operations, applications with circulating processes, game applications that require confirmation procedures…

The more dApps and other applications start on Radix, the faster the realization of a deflationary system. The more users that use the applications, the more throughput is generated.


Florian has posted a graph about the number of TPS needed at certain price points to make XRD deflationary assuming a 1c/transaction fee.


Can you by any means dig up that graph and put it here? That would be basically a solution for this question and since I have never seen it before, I would check it out for sure!

If Radix delivers its’ promises, I believe deflationary won’t an issue due to the widespread usage of it.

Radix is already deflationary with the burning mechanism.

Yes, it would be nice to see and analyze together its numbers. Anyway, what is sure is that we need more and more dApps to start working on Radix, in this way the deflationary process will be smoother.

Maybe it’s true I’ve asked them too but for now they say we can’t see how many XRDs burned based on transactions that have occurred to date and where they were once burned.

Then, does the burning fee reduce the amount of supply currently circulating or can the gas fee be managed again?

Fees burning is a deflationary pressure - but Radix overall is not deflationary as staking emissions are significantly higher than the reduction in XRD from burnt fees.

Sustained high TPS is needed to make Radix deflationary overall

Yeah I calculated a couple of years ago that Radix needs around 950+/- TPS to eat up the 300M annual emissions. Here is a rough calculation of how many XRD need to be burn per day to chew up 300M annual emissions. (300000000 / (86400 sec a day x 365.25)) give you 950.6426344208685 at .01 XRD each transaction.