Radix ICO

Discussion in 'General' started by olliejjc16, May 11, 2017.

  1. olliejjc16

    olliejjc16 Beta Testers

    Hi thanks for all the explanations that makes it a lot clearer for me and hopefully for anyone else who was struggling a bit with the economics! Is there any idea of how long the ICO will run? This is the first one I've participated in so just interested in what the timeframe length for investing is; a week, a month?
    OllieRDX likes this.
  2. Peachy

    Peachy Founders Staff Member

    Something also to consider (which gives me a chuckle) is for us U.S.-based users that plan to do our taxes according to the legally proscribed method of treating virtual currencies. Currently, the rules are written based on fixed-supply/variable price currencies, aka bitcoin.

    Effectively, for RDX "interest" and "earnings" received (same as with purchased or mined bitcoins) you have to report the capital gains (price change of a RDX unit from the time when you received the new supply vs. when you sold it/cashed out into fiat).

    However, since the price of each RDX will remain at practically the same price this means we probably won't have to pay capital gains (or almost 0) until they re-write the loophole.

    Sounds like we get a pass during year-1 at least. The joys of being different. ;)

    Granted, you'll still have to report the new supply as "income" in the year it was received, but at least we won't have much in the way of dealing with the capital gains FIFO dillema.
    Last edited: May 12, 2017
  3. Fuserleer

    Fuserleer Radix Founder Staff Member

    Heh nice loop hole indeedy!
  4. gbcholgi

    gbcholgi Beta Testers

    Capital gains only when i change it to fiat? when i hold this for 1 year it is tax free?
  5. Gedke

    Gedke Beta Testers

    Interest and earnings are paid only to those users running the client 24 hours a day? Or earnings are obtained by running the client and interest is gained automatically based on your holdings? even if you keep the coins offline?
  6. gbcholgi

    gbcholgi Beta Testers

    if i have 10000 RAD from 50 Million existing RAD.

    Someone buys for example 50 Million RAD

    my 10000 RAD gain +5000 RAD

    the whole system has the existing 50 Million + creates 50 Million BuyIN + creates 25 Million for Nodes + creates 25 Million for Interest = 150 Million Rad after the 50 Million buy?

    Where is my mistake?
  7. Anima

    Anima Founders Staff Member

    Earnings: you need to run a service
    Interest: what you get when supply/market cap increases
  8. Peachy

    Peachy Founders Staff Member

    Cap gains are normally only relevant when you "sell" something and you have to compare the costs basis (ie the cost you bought it at) vs. the cost you sold it at. Thus, if its $1 when you got it and $1 when you sold it then $0 cap gains.

    Time length of ownership is usually only relevant if you are trying to treat it as a short term or long term capital gain.

    Short term cap gain: treated as you would normal income (e.g. taxed at the same rate as Income you make from a job)

    Long term cap gains: If held for 12 months then its at the current 0% or 15% tax rate (20% for wealthy peeps)

    Of course, that's all subject to change this year (gotta love/hate our f'ed up system)
    Last edited: May 12, 2017
    Melody, Lloyd and gbcholgi like this.
  9. Peachy

    Peachy Founders Staff Member

    As Anima said + Additional info:
    For earnings: As long as you do work during a "work period" (I believe the current work period will be defined as 1 week) then you will get "earnings" for that period. If you take your system down before the payout of those earnings then they will get added to the wallet once it is brought back online again (after the earnings calculation period).

    For Interest: you don't actually have to be online all the time to earn them.
    As soon as you do bring that wallet online again any prior interest it is entitled to from previous periods will be automatically dumped into it.
    Melody and Gedke like this.
  10. Lloyd

    Lloyd Founders Staff Member

    existing 50M + 25M for Nodes + 25M for Interest = 100M existing

    The (25M+25M) = the new Supply from the 50M new Demand... but only if some people are willing to sell their RDX to the new mega buyer.
    gbcholgi likes this.
  11. Gedke

    Gedke Beta Testers

    RDX token will be also listed on exchanges like Liqui, Bittrex after ICO?
  12. rotane

    rotane Founders

    Internal DEX is supposed to make users Independent of third Party exchanges Like Polo. What is the point of listing then?
  13. Lloyd

    Lloyd Founders Staff Member

    Lets think for a bit about the usage of other exchanges outside of the Radix network...

    The network Radix Demand / Supply or economics, are determined by the Radix integrated exchange (DEX). So if RDX tokens are on other exchanges, then how will the Radix network know about any new changes in the Demand/Supply of the overall RDX available to the network. Also, there would be no new supply generated if the demand for the RDX is on external exchanges. If the RDX token on the external exchange increases to say $1.50 and on the Radix DEX the price is still ~$1.00 what sense would it be to purchase them for more when you can get them for less. The same goes for selling them, why sell them for less than the DEX price of ~$1.00?
    Last edited: May 15, 2017
  14. jonas452

    jonas452 Beta Testers

    Easy entry to the radix network for converting one crypto to radix and brand awareness?
  15. rotane

    rotane Founders

    Brand awareness is valid, yet Dan has his Plans how to raise awareness. And target market is Not the crypto community but average consumers. But maybe @Fuserleer can Tell more...
  16. kiaya

    kiaya Beta Testers

    Are the elastic supply mechanics only triggered by the dollar market on the Radix DEX, or by all RDX pairs on the DEX? We aren't going to be able to prevent exchanges from listing RDX if they want to, I guess the only question is, do we want to promote and encourage it.
  17. Lloyd

    Lloyd Founders Staff Member

    the elastic supply mechanic in the DEX will recognize various primary cyrpto currencies say such as the top 5 in marketcap, and of course the dominate fiat currencies also. This is my understanding from conversations here in the forum shoutbox and posts in the beta section of the forum. But the specifics are still to be disclosed by Fuserleer.
  18. Cyg

    Cyg Beta Testers

    Other (external) exchanges listing RDX is not a problem. Arbitrage will take care of the price discrepancy. In a short amount of time I imagine user created bots will be taking advantage of any price differences. I feel we can't expect all users to suddenly switch to the DEX (long term that is a different story - but that comes back to trust and usability).

    Either way other exchanges listing RDX is fine. It adds more demand for RDX, and that demand can be kept in check by users buying cheap on the DEX and selling for profit on an external exchange if they desire (who doesn't like free money).
    Last edited: May 16, 2017
    kiaya and Rickard like this.
  19. Peachy

    Peachy Founders Staff Member

    Seems that June is the ripe time for an ICO.

    Tezos moved theirs to June as well and is getting a lot of (unwarranted) press due to the recent activity by billionaire Tim Draper joining the party.

    To save you research time:
    -Blockchain (yawn!)
    -POS mining (double-yawn)
    -Finite coin limit (10B)
    Much boring, so yesterday

    Also, it is developed by a former Goldman Sachs trader and Hedge fund manager:

    "Tezos was created over a span of three years by Kathleen and Arthur Breitman. Arthur Breitman had worked at the high frequency trading desk at Goldman Sachs and was an options market maker at Morgan Stanley, while Kathleen Breitman is a former management associate at Bridgewater Associates, the world's largest hedge fund. "

    Seems the crypto space has finally reached a size worthy enough to awake "The Street" beasts to enter the game.
    Melody and Lloyd like this.
  20. Jazzer

    Jazzer The Dutch connection Staff Member

    Spot on. It's not a problem for us. And that's a good thing, because there's not really a way we can stop it either, lol. We just have to build a better DEX ourselves (which we can do because of the superior tech) and it will get good traffic quickly enough. Due to the the superior tech, a Radix based exchange should be able to offer lower tx fees.
    CryptoMomma likes this.

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