A huge proportion of computing resources used in the world today are open source. Collectively, the open-source developer community has created a massive pool of software, libraries, frameworks, and other developer tools that have transformed the world. These resources, which are largely developed by volunteers, have become the bedrock upon which some of the most commonly used applications are built on.
Despite propelling humanity towards such extraordinary achievements, there is no set framework on how to reward these self-organised contributions. Particularly, individual developers lack definitive means through which they can benefit from the use of their contributions to open source initiatives. Not to be misunderstood, this does not mean that contributors to open source are not compensated. They do. Developers can earn through various means such as sponsorships and grants from organizations, dual-licensing, consulting, freemium models, and auxiliary channels. As a result, earnings are oftentimes not commensurate to the developer’s effort, skillset, time, and usefulness of their contribution among other parameters.
Fortunately, all hope is not lost as innovation for alternative reward/earning mechanisms within the space is ongoing. Platforms such as Patreon and Gitcoin are taking different approaches and are opening up additional options for open source developers.
However, these inventions only scratch the surface and fall short in addressing the bigger issue, that is the lack of standardized incentives and revenue model for developers.
Radix is taking on a new approach altogether by creating a recurring developer revenue model for incentivizing open source developers to keep building.
Radix Developer Royalties System
Radix is pioneering a new approach that enables open source developers to benefit directly from their contributions through the Developer Royalties System. The blockchain-based system will be built on the Radix network and will serve as a reward mechanism through which developers can generate on-going revenue in a sustainable manner.
This novel solution is built with both the market and community in mind as Radix seeks to build a robust decentralized network to support the next generation’s financial ecosystem. This is a herculean task requiring the commitment of massive resources, resilient building, and cooperation among developers. In short, it is an expensive and time-consuming endeavor. But, it needn’t and shouldn’t be.
The Radix Developer Royalties System is a simple, yet, highly effective incentive mechanism that will help accelerate this process immensely. This is how it works. A developer’s contribution like a library, oracle, or smart contract in the Radix network is referred to as a ‘Component’. Developers can openly create components that can be used by anyone on the network to build applications, assets, and financial products among others. The incentivize system encourages developers to build these core components and make them accessible to other users on the network. In turn, the developer can set a royalty fee, to be earned whenever a component they created is used.
Incentivising developers, dApps builders, and companies will encourage them to contribute more to the ecosystem. This will help fast-track the development of the Radix network and applications supporting core functionalities. With revenues tied to contributions and their use on the network, developers are incentivized to build basic and useful features that in turn accelerates others’ ability to build atop the network infrastructure. The system shortens the time needed to build new products on the Radix network by availing the necessary components on the network’s catalog.
The ingenious nature of this incentive mechanism results in a win-win scenario for all parties. Developers have a sustainable revenue stream through on-going incentives for their contributions to the network. The network grows rapidly in both scope and complexity due to increased activity from incentivizing developers. The system will boost the long-term growth of the ecosystem as a result of the easy creation of applications that in turn drives adoption.