- The Radix Foundation proposes a phased end to its validator subsidy by June 2026, transitioning from ~$500/month to $100.
- A community poll shows 42% of participants want an immediate end, while 41% of validators may shut down without support.
- The plan includes a payment cap of 400k XRD per month to protect the treasury from inflation while tapering support.
- Administration of the subsidy will shift from the Radix Foundation to a new community entity starting in April.
The Radix Foundation is orchestrating a pivotal vote to phase out its validator subsidy program, a move designed to shift the network toward sustainable, fee-driven operations by mid-2026. Community sentiment is sharply divided on the issue, a situation revealed in preliminary polls. Consequently, the Foundation has structured a “tapered exit” to prevent network shock while preserving treasury funds.
This two-phase proposal begins with Foundation-administered payments capped at 400k XRD. Validators will receive approximately $350 in February and $200 in March, calculated in XRD. However, administration will then transfer to a community-led entity for the final two months. Payments during this second phase will drop to a flat $100 value paid in XRD. The full transition plan and its rationale are available for review according to the published RFC & Discussion.
The primary goal is to give node operators a clear runway to adjust their business models. Meanwhile, the cap protects the ecosystem’s treasury from excessive inflationary pressure. Token holders are now being asked to cast their vote on this critical path forward via a formal consultation. The vote requires a minimum of 500M XRD in voting weight to be considered a fair representation of opinion.
Option one approves the tapering plan, ending all subsidies in June. Option two rejects the change, maintaining the current $500 monthly payments until a community entity takes over. This decision marks a significant step in Radix‘s evolution toward a fully decentralized, community-led governance model.
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