On-ledger, Recurring Developer Revenue. Incentives to Buidl.

Why Self-incentivisation is Critical

Radix Components and the Component Catalog

Adding in Royalties, Allowing Developers to Generate Income

  1. DIRECT INSTANCE USE — This is when a user transaction directly accesses an Action of an instantiated Component. For example, this might be the interface to a DeFi application like a CFMM, even if this Component uses other Components “behind the scenes”.
  2. REFERRED INSTANCE USE — When a Component is used directly, as in #1, it may specify that multiple other instantiated Components must be included in the Action for the transaction. This is “referred” instance use. For example, a DeFi application might use an instantiated oracle Component to get access to its data by reference for a certain transaction.
  3. CATALOG USE — Each instantiated Component is associated with an original Component in the Catalog; this refers to that form of usage of that original. Remember that a developer does not pay for instantiation, but rather when an instantiated Component is used (as in #1 and #2), the original Catalog Component behind it is also being used in this way.
  4. IMPORTED USE — This refers to the usage when a developer “imports” an existing Catalog Component into his own new Catalog Component. As in #3, the importing itself is not paid, but rather the imported Component is considered used when the instantiated new Component is used in a transaction.

Supercharging Radix Ecosystem Development

  1. Components themselves can range in complexity and are not required to be fully functioning applications. As a result, initial community development can be focused on creating components that have broad use across a range of applications on the Radix network. For Component developers, this allows them to focus on building specific functionality, without the need for building whole products and front-end applications.
  2. Having a on-ledger Component Catalog allows application developers to leverage a wide range of functionality which allows them to develop secure applications quickly, while still maintaining composability and standardisation in some of their functionality. By creating more applications, the network also generates more transactions on each of the components being used.
  3. As the Component developer can set a royalty rate for a range of uses of their Component each time they are used in a transaction, the Component marketplace encourages developers to build functionality that will be in-demand and, in doing so, generate income for their efforts. A developer could choose to work on making a standardised “simple” component that has a wide range of uses and offer it at a very low royalty fee, or they could create a highly specialised but valuable Component that won’t have a high volume of use, but which they could charge a higher royalty fee for.

More on the Radix Engine, Components, and Developer Royalties



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Radix DLT — The Decentralized Finance Protocol

Radix DLT — The Decentralized Finance Protocol

The first layer 1 protocol specifically built to serve DeFi