Radix Economics

Discussion in 'General' started by Pizza, Jun 1, 2017.

  1. fishbulb

    fishbulb New Member

    That will help for a while, and hopefully it is enough. However, when it is made open source will that market share be enough.

    Or, there are some clever programmers out there. Perhaps they'll get enough info from around the place to write their own code in a quick enough fashion. Unlikely I know, but still a risk.
  2. Regnar

    Regnar New Member

    I think the IRS is going to classify every RDX increase, regardless of how nominal, as short term capital gains, and if they are spent they will be short term capital gains realized. They have also done away with "Like Kind" transfers as of Jan 1st and while they likely won't classify this as interest, they will classify it most likely as a fringe benefit in which each user will file a 1099 Misc, and likely spending any RDX will be taxable as well (though the price stability should mitigate this). We definitely need better terms with the IRS but that will be a tough fight.

    I can't think of a way to convincingly argue that an increase in the actual amount of a spendable asset isn't a form of income, regardless of work done for it. I think they will also try to crack down on Proof of Stake coins as well.

    Do we have a CPA in here that can help chip in?
  3. Peachy

    Peachy Founders Staff Member

    My wife's a CPA and we've been going round and round for months on this discussion with still no clear solution. lol! o_O

    I've done some digging on the issue for a while now in looking at how other tax pros are handling Proof of Stake situations, but even those wouldn't technically apply here since the rewards they get are based on doing "work" whereas our "interest" payments would be consider closer in nature to "passive" income (since I wasn't actually involved in the generation of it) vs. active (ordinary) income (which is what bank interest would be counted as).

    The wife is pinging many of the Big4 agencies to see what their view of it would be (since they are the ones that ultimately help shape the policy). If I find out anything I'll let you know.
    Lloyd, Collett, Rickard and 1 other person like this.
  4. Zeno Stiffler

    Zeno Stiffler New Member

    I would be most interested in running this back test for myself. But I think I am right in saying it is under patent? How, if, when will it ever be possible to reproduce or run tests for oneself to verify this concept? I am working on a report I intend to publish . I am a financial analyst (ex investment bank) with much experience in investments in conventional markets and a great deal of experience in coding and back testing investment techniques in Python/pandas etc.

    I expect the answer will be "not possible - go away". But then presumably your economic paper will eventually give some more depth? I have read and appreciated your referenced posts.

    I note that apparently "elasticity" of supply was not built into these tests. Presumably that can easily enough be done if desired? Although obviously I am very new to your model and concepts.
    Fuserleer stated the following on the Bitcoin form. Did he follow it up with further tests? If so where can I find them?

    "I'd like to do this volume scaling and run the sim with the elastic supply enabled, for my own peace of mind, and to appease people here...I'll post back the results if there is interest, but it wont be applicable to BTC anymore, so this topic now is probably not relevant in this forum."
    Last edited: Mar 9, 2018
  5. anon

    anon New Member


    I just signed up to ask this question. I read that the DEX will take BTC and exchange them into RDX at the current rates. So I wondered if I end up with RDX, what does the DEX do with all the BTC it amasses over time? Will they be held as reserves by the system to strengthen the currency? Will the DEX lose BTC again when more people start selling back their RDX for BTC?
  6. Peachy

    Peachy Founders Staff Member

    They go to whomever you bought the XDR from. Just like on any exchange.
  7. anon

    anon New Member

    Yes but what happens when you buy new Radix from the system? Like when nobody else is willing to sell to you and the system steps in and creates new RDX as described in the elastic supply thread. You exchange your BTC or ETH or whatever for RDX. You end up with RDX and the system takes your BTC/ETH. What will the system do with the assets it amasses over time? Or did I misunderstand something completely?

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