---
title: "Radix Economic Model"
path: "/contents/tech/research/radix-economic-model"
version: "1.2.0"
author: "Hydrate"
createdAt: "2026-02-19T06:03:53.133Z"
updatedAt: "2026-03-16T18:21:03.058Z"
---

# Radix Economic Model

<Infobox>
| **Annual Emissions** | 300M XRD |
| **Revenue Sources** | Transaction fees, [component royalties](/contents/tech/core-concepts/component-royalties) |
| **Total Supply** | 24 billion XRD (max) |
</Infobox>

## Overview

The **Radix Economic Model** is designed for long-term sustainability. Key parameters:

  - **300 million [XRD](/contents/tech/core-protocols/xrd-token) annual [emissions](/contents/tech/core-concepts/network-emissions)** — distributed to [validators](/contents/tech/core-concepts/validator-nodes) and stakers

  - **Transaction fees** — paid in XRD for every transaction, partially burned

  - **[Component royalties](/contents/tech/core-concepts/component-royalties)** — blueprint authors earn from usage

  - **24 billion max supply** — with decreasing emission rate over time

The model incentivizes both network security (staking rewards) and developer contribution (royalties), creating a self-sustaining economic flywheel as [DeFi](https://en.wikipedia.org/wiki/Decentralized_finance) activity grows.