RFC: Merch to mitigate Structural Revenue Gap

Governance Radix Community DAO
1

Hi all,

The community needs FIAT revenue to reduce reliance on XRD sales. I believe strongly that we need to find methods to generate FIAT revenue, so that the current and future entities have liquidity to invest, grow, and run operations, without having to continuously sell XRD to fund activities. I therefore put forward my first of a few proposals to help support Radix create sustainable growth and remain solvent for years to come.

RFC: Merch to mitigate Structural Revenue Gap

Urgent Revenue Initiative to Eliminate XRD Sell Pressure

Author: Phil Gibson
Date: 25 January 2026
Status: Proposal
Funding Request: Ā£6,000 over 6 months (safety net - can stop early if profitable)
Target Profitability: < 6 months
Foundation (existing and future equiv) Revenue Share: 50% net profit

Executive Summary

The community needs FIAT revenue to reduce reliance on XRD sales. Without alternative funding sources, XRD has been sold for operational costs and will likely need to continue. This RFC proposes a for-profit merchandise store that can launch within 4 weeks of approval and begin generating FIAT revenue, with profitability targeted for Month 6.

Key Points:

  • Launch Timeline: <4 weeks from approval/vote

  • Profit Share: 50% to (current or to-be community structure) once reliably profitable

  • Safety Net Funding: Ā£6,000 maximum (stops when profitable)

  • Risk: Capped at Ā£6k; if fails, all assets transfer to (current or to-be community structure)

  • Market: Radix-specific + generic crypto + ecosystem partner merchandise

  • Urgency: Without revenue alternatives, reliance on XRD sales continues

Why This Matters Now: Without generating revenues, the pattern of XRD sales for operational costs will continue indefinitely, no matter what organisation is setup, where, or by whom. This initiative can be operational in <4 weeks with minimal risk and immediate benefit to the community.

The Problem: Structural Revenue Gap

Current State:

  • XRD has been sold to cover operational costs

  • Without alternative revenue streams, this will likely need to continue

  • New governance structure lacks established revenue streams

  • Delays in decision-making prevent timely initiatives

Market Impact:

  • XRD sales for operational funding create price pressure

  • Community concerns about sustainability during transition

  • Competitors (ETH, SOL) have established merch revenue streams

  • Radix previously had a successful merch store (proof of demand)

Time Sensitivity: Without alternative revenue sources, the pattern continues. We cannot afford to wait for perfect governance structures. We need immediate action with acceptable risk.

Proposed Solution

Business Model

A for-profit limited company that:

  • Licenses Radix IP for merchandise purposes (exclusive licence)

  • Operates print-on-demand store (zero inventory risk)

  • Sells Radix-branded + generic crypto + ecosystem partner merchandise

  • Creates joint go-to-market campaigns with ecosystem partners

  • Provides subsidised merch service for ecosystem initiatives, events, and community programmes

  • Pays (current or to-be community structure) 50% of net profit once reliably profitable, per the proposed annually agreed Radix IP partnership agreement

  • Can be operational within 4 weeks of approval/vote

Why For-Profit, Not Community-Owned?

Speed: Operational in <4 weeks vs months of procurement processes Risk: Ā£6k capped vs ongoing staff/operational costs Focus: Profit motive ensures revenue optimisation Flexibility: (Current or to-be community structure) can acquire after Year 1 if successful

The governance is in transition. This structure enables immediate action without complexity.

Financial Overview

Funding Request

Maximum Ā£6,000 over 6 months (Ā£1,000 per month) - but stipend stops once reliably profitable.

Example setup costs:

  • Domain name

  • Website design

  • Platform hosting

  • Legal licenses and templates

  • Initial product designs

  • Marketing launch budget

Example ongoing costs:

  • New designs

  • Marketing spend

  • Platform and hosting fees

  • Licenses

  • Operational buffer

Milestones

Conservative Projections:

Milestone Target Profit Share (50%)
Month 1-2 Initial losses expected Ā£0
Month 3-5 Growing operations & marketing Ā£0
Month 6 Profitable & sustainable Revenue share active

Key Assumptions:

  • Print-on-demand margins: ~25-40%

  • Average order value: Ā£40

  • Conversion rate: 3-3.5%

  • Community activation drives early traffic

Stipend Safety Net

Critical Provision: Once operations are reliably profitable (2-3 consecutive months), the stipend stops and profit sharing begins.

Revenue Share Structure

Profit Share Once Reliably Profitable

Unlike typical models that defer revenue share until full investment recovery, this proposal pays the (current or to-be community structure) 50% of net profit once reliably profitable (2-3 consecutive months).

Rationale:

  • Aligns interests immediately once sustainable

  • (Current or to-be community structure) sees benefit from profitable operations

  • Supports the Radix ecosystem with FIAT liquidity ASAP

  • Significantly higher than market standard (typically 15-20%)

Operational Milestones

Launch (<4 weeks from approval)

  • IP licence agreement signed (timing TBC with current foundation)

  • Domain secured & platform configured

  • 12 initial designs (6 Radix, 6 generic crypto)

  • Supplier onboarding and product testing

  • Payment processing live

  • Soft launch to Radix community

  • Full launch and marketing activation

  • Aligned to Radix brand guidelines

Month 1-2 from launch: Community Activation

  • Reddit AMA about revenue initiative

  • Twitter Spaces with community

  • Exclusive founding member discounts

  • Influencer seeding programme

  • Initial ecosystem partner discussions

Month 2-5 from launch: Growth & Marketing

  • Expanded product catalogue (20+ items)

  • Non-Radix traffic building

  • First ecosystem partner campaigns launched

  • Scaling operations and marketing spend

  • Building sustainable revenue base

Month 6 from launch: Target Profitability

  • Sustainable profitability confirmed (2-3 months reliable)

  • Profit sharing begins, stipend ends

  • Quarterly community review

  • Multiple ecosystem partner campaigns active

  • Event merch service established

Governance & Community Accountability

Quarterly Public Reviews

Not private reports - public community accountability:

  • Quarterly performance presentations to entire Radix community

  • Key metrics shared: revenue, orders, profit, payments to (current or to-be community structure)

  • Community Q&A sessions

  • Strategic direction discussions

  • Ecosystem campaign updates

This ensures:

  • Transparent use of community resources

  • Community input on direction

  • Public accountability for results

  • Trust building during transition

Ecosystem Service Value

Beyond revenue generation, this initiative provides critical infrastructure for the Radix ecosystem:

  • Event Support: Merch for Radix events, conferences, meetups

  • Partner Campaigns: Co-branded merchandise with ecosystem dApps and validators

  • Community Initiatives: Branded materials for community-led programmes

  • Marketing Assets: Physical touchpoints for ecosystem growth

This creates network effects where the store becomes a shared resource, not just a revenue stream.

Rights & Controls

(Current or to-be community structure) retains:

  • IP licence revocation rights (90-day notice)

  • Radix-branded product approval

  • Annual licence renewal decision

  • Ability to absorb this operation, and all assets, after Year 1

Operator controls:

  • Day-to-day operations

  • Pricing and marketing

  • Generic product development

  • Supplier relationships

  • Ecosystem partnership terms

Risk Management

If this fails:

  • Exposure capped at Ā£6k

  • All assets transfer to (current or to-be community structure):

    • Domain & platform access

    • Product designs & IP

    • Customer database (GDPR compliant)

    • Supplier relationships

    • Learnings & documentation

  • Clean handover for future operator

  • Quarterly public reviews ensure community oversight and accountability.

Why This Should Start Soon

The Revenue Gap Problem

Current trajectory:

  • Operational costs continue

  • No alternative revenue streams

  • Reliance on XRD sales for funding

  • Community concerns about financial sustainability

With this initiative:

  • <4 weeks to operational launch

  • Revenue generation begins immediately

  • Month 6: (Current or to-be community structure) receives 50% of profits

  • Sustainable revenue stream established

  • Year 1: Optionality (acquire, continue, or cancel)

The Cost of Waiting

If we wait 6 months for ā€œperfectā€ governance:

  • Ā£0 revenue generated in that time

  • Continued reliance on XRD sales

  • Opportunity cost of delayed launch

  • No progress on revenue diversification

If we start soon:

  • <4 weeks to launch from approval

  • Revenue starts Month 1

  • Profit sharing begins Month 6 (if sustainable)

  • Proven model established

This is about taking action. The community benefits from revenue diversification initiatives that reduce reliance on XRD sales.

Open Questions

Critical Path

  1. Who has authority to grant IP licence during transition?

Strategic

  1. Is 50% net profit share once reliably profitable acceptable?

  2. Quarterly public reviews sufficient or monthly preferred?

Operational

  1. Crypto payment acceptance required or FIAT-only acceptable?

  2. Support for ecosystem partner co-branded campaigns?

Timeline

Community Comment Period: RFC feedback and discussion ā†- now, weā€™re here!

Optional: Vote/Approval: Community decision on proceeding (or approval via comment consensus)

<4 weeks from approval: Launch completed

  • Platform setup and configuration

  • Design finalisation (12 initial products)

  • Supplier onboarding and testing

  • Soft launch to Radix community

  • Full launch and marketing activation

Month 2-5 from launch: Growth phase - scaling operations and marketing
Month 6 from launch: Target profitability, profit sharing begins, quarterly community review
Month 12 from launch: Annual licence renewal discussion

Conclusion

The Radix community needs FIAT revenue to reduce reliance on XRD sales. This proposal offers:

  • Fast action: <4 week launch timeline from approval

  • Minimal risk: Ā£6k maximum exposure

  • Substantial benefit: 50% profit share once reliably profitable

  • Flexibility: Stipend stops when sustainable profitability achieved

  • Transparency: Quarterly public community reviews

  • Ecosystem service: Merch infrastructure for events, partners, and initiatives

  • Optionality: (Current or to-be community structure) can acquire after Year 1

The critical question: Can we afford to wait months for perfect governance structures whilst relying on XRD sales for operational costs?

I believe we cannot. This RFC proposes timely action with acceptable risk.

Revenue diversification benefits the entire ecosystem. Letā€™s start building financial resilience.

I hope you give me the opportunity to support the community via this proposal.

Letā€™s get this done. Letā€™s stop the sell pressure. Letā€™s #DoItForDan

Best,

Phil Gibson

* Goal is to move very quickly, however timing is indicative, and in many cases dependent on parties such as the Radix Foundation and/or other Radix entities

5 Likes
2

I have no fucking clue why on earth anyone would want to spend on any Radix-related merch :sweat_smile:
Iā€™m going to give you the benefit of the doubt and assume youā€™re well versed in merch, collectibles and the whole way it works and so maybe Iā€™m missing smtg.

I can tell you this, and Iā€™m a hardcore and almost GC Radix guy: I wonā€™t want any of it. I wouldnā€™t spend a dime on it.

And I ā€œwasteā€ money in collectibles and stuff all the time.

Radix isnā€™t a thought-after brand ser, itā€™s nothing, it doesnā€™t exist outside our little bubble, and thatā€™s a very tiny one even inside the tiny crypto bubble.

Hell, those heavy weights in the NFT, gaming/eSports and ART still havenā€™t made a dent on that market and some of them are indeed almost recognized worldwide by now, even a bit outside the space.

From the looks of it, weā€™re better off asking ppl for a donation - ā€˜cause thatā€™s whatā€™s happening here, youā€™ll only get some sales going in the community and even so, I highly doubt itā€™s actually able to turn a profit, even a one-off thing, much less a recurrent one :sweat_smile:

I donā€™t want to come across as simply dismissive, while not putting forward anything myself ā€¦ but this feels so unfeasible to me that I really have no other way to put it, sorry. Itā€™s just an opinion, ofc. But I will not support it, thatā€™s all.

to put it simply, for me: This has no real market fit and no real demand, doesnā€™t solve any market need that I can identify (or verify, ā€˜cause youā€™re not giving any, btw).

I imagine it may be coming from the heart and good intentions ā€¦ but those donā€™t make businesses, no matter how much they drive the persons building any.

3

How about running it as a non profit?

People could donate to it to cut their taxes and receive the merch as a thank you from the organisation

4

Hi @StakingCoins , the for-profit element was something I deliberated over quite a bit.

I think to get a party to be highly motivated, tapping into peopleā€™s pocket and reward system, having a piece of the pie (in this case, 50% of the profit) helps create the carrot/incentive effect.

My concern is the 2 examples of a Radix merch store in the past, neither were particularly pushed hard, whereas having a for-profit element, aligns incentive and creates motivation for the current and future holder of the rights.

Whilst I may be motivated for 3 months to kick-start this, how do we bake in an ongoing incentive to retain interest, attention, investment by the Operator.

If thereā€™s no ā€œwhatā€™s in it for meā€ I believe the pool of people willing to push this will decrease, and the energy remaining will shrink.

I think having not-for-profit is something to aim for in the long-term, and I feel that this 50%/50% strikes a balance for where we are today to get this motoring whilst the bigger changes are ongoing. Iā€™m keen to remove any excuses off the table and just start helping democratise the foundationā€™s activities quicker.

1 Like