SURVEY-107: Phased Remediation and Dust Considerations for the Convenience Class
Summary
As part of Radiant DAO’s ongoing commitment to equitable remediation and long-term sustainability, the DAO proposes a phased remediation plan for the Convenience Class, defined as users with net deposits between $10 and $1,000 at the time of March 11th conversion.
This plan introduces a structured, tranche-based approach to distributing funds, aligned with the DAO’s treasury management objectives, and overall protocol health.
Additionally, this proposal builds upon the prior community-approved Convenience Class remediation vote and revisits the DAO’s previous definition of dust (balances ≤ $10), considering community feedback and new data regarding claim activity, user participation, current treasury conditions, and cost efficiency.
Importantly, this updated plan acknowledges that the DAO’s treasury is currently over-exposed to RDNT, with limited non-RDNT assets. Because paying remediation entirely in RDNT during a down-market period would require significant selling pressure—directly harming RDNT holders and degrading the DAO’s financial runway—a more measured, phased distribution is being recommended.
Despite this, the broader protocol outlook has improved. Radiant’s TVL has recovered from ~$3M at the post-exploit lows to consistently above $20M since November 3, 2025. This recovery reinforces the value of patience, fiscal restraint, and disciplined execution during remediation.
Rationale
1. Safeguarding Long-Term Protocol Health
Radiant’s recovery and growth depend on disciplined treasury management. The DAO remains fully committed to remediating affected users as per community consensus; however, this must be done responsibly, balancing the community’s expectations with operational and developmental sustainability.
A phased approach ensures the DAO can fulfill its obligations without compromising strategic initiatives such as:
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Funding for innovation, audits, and new chain deployments
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Treasury preservation amid evolving market dynamics
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Sustained liquidity and protocol resilience for the RDNT token
2. Managing Cash Flow and Market Volatility
The DAO’s treasury is finite, and its income sources remain tied to market performance and protocol activity. Implementing a phased distribution schedule reduces exposure to adverse conditions such as:
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Liquidity crunches
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Market volatility affecting RDNT
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Temporal imbalances in DAO cash flow
Each tranche is designed to match the DAO’s financial capacity at that time.
3. Protecting RDNT Market Depth
RDNT market health remains a key strategic priority. By carefully managing token emissions through phased remediation, the DAO can help preserve liquidity depth and prevent undue downward pressure. This disciplined pacing ensures that the DAO’s commitments are met while protecting RDNT’s long-term price stability and market structure.
Proposed Distribution Schedule
The DAO proposes to execute remediation for the Convenience Class through seven tranches, broadly equal in aggregate value, based on net deposit size.
| Tranche | Eligibility Range (USD) | Estimated Timing |
|---|---|---|
| Tranche 1 | $750 – $1,000 | Q1 2026 |
| Tranche 2 | $500 – $750 | Q2 2026 |
| Tranche 3 | $250 – $500 | Q3 2026 |
| Tranche 4 | $100 – $250 | TBD |
| Tranche 5 | $50 – $100 | TBD |
| Tranche 6 | $25 – $50 | TBD |
| Tranche 7 | $10 – $25 | TBD |
As Radiant’s revenue, treasury position, and Guardian Fund performance strengthen, later tranches may be accelerated based on DAO approval and on-chain data.
Dust Classification Review
The DAO previously established “dust” as balances ≤ $10, primarily based on claim contract gas efficiency. However, further community and advisor analysis revealed additional considerations warranting reevaluation.
Claim Inactivity
Data shows that as claim amounts decrease, claim delinquency rates would increase significantly. In other words, smaller claim values correlate with a higher probability that recipients will not engage with the Merkl distribution due to wallet inactivity.
| Tranche | Eligibility Range (USD) | Inactivity (days)* | Inactivity (%)** | Claim Incentive Factor*** | Estimated claimants (%)*** |
|---|---|---|---|---|---|
| Tranche 1 | $750 – $1,000 | 41.11296398 | 8.94% | 0.90 | 81.95% |
| Tranche 2 | $500 – $750 | 39.98324185 | 8.02% | 0.80 | 73.58% |
| Tranche 3 | $250 – $500 | 37.8675244 | 11.29% | 0.65 | 57.66% |
| Tranche 4 | $100 – $250 | 49.28989726 | 14.67% | 0.50 | 42.67% |
| Tranche 5 | $50 – $100 | 69.30405297 | 20.33% | 0.35 | 27.88% |
| Tranche 6 | $25 – $50 | 155.3536368 | 32.07% | 0.20 | 13.59% |
| Tranche 7 | $10 – $25 | 304.2530316 | 42.50% | 0.08 | 4.60% |
*Measured as median days passed since last activity on all EVM chains.
**Measured as % of wallets inactive (0 Txs) for at least 1 full year on all EVM chains.
***To forecast expected remediation participation across the Convenience Class, the DAO applies a claimant probability model based on (1) on-chain inactivity and (2) diminishing incentive to claim smaller balances.
Activity Score
ActivityScore=1−InactivityRate
Value-Adjusted Incentive Factor
Lower-value tranches exhibit materially reduced claim motivation even among active wallets. To reflect this, the DAO applies conservative incentive multipliers.
Estimated Claimants
EstimatedClaimants=ActivityScore×IncentiveFactor
Applying this model yields a steep decline in expected participation across lower tranches, with estimated claimant rates ranging from 82% in the top tranche to <5% for balances below $25. This supports a more efficient remediation strategy by recognizing that low-value distributions are overwhelmingly unclaimed and can be reasonably classified as dust.
Given this data, distributing funds to inactive wallets may not yield meaningful remediation results, leading to inefficiencies in both gas and treasury utilization.
Reallocating these funds toward higher-value tranches or protocol growth initiatives would create greater net community impact while maintaining fairness in execution.
Many wallets with extremely low balances are now inactive, lost, or abandoned. Distributing remediation to these addresses does not produce tangible community benefit and may instead result in dormant RDNT supply that is never circulated or utilized. Reclassifying such tranches as dust prevents treasury resources from being trapped in unproductive or unreachable addresses.
The spirit of the remediation effort is to meaningfully assist affected users, not to perform symbolic gestures that provide no practical benefit. By focusing on viable, claimable, and impactful distributions, the DAO honors community intent while respecting the operational limits of decentralized execution.
Building for Resilience and Renewal
This phased plan embodies Radiant DAO’s enduring ethos: community-first, sustainability-always. It ensures that remediation continues meaningfully, transparently, and responsibly, while reinforcing the DAO’s operational resilience and governance credibility. Through Radiant v3 and subsequent protocol iterations, the DAO seeks not only to remediate but also to rebuild stronger, with governance processes that reflect both empathy and fiscal discipline.
Next Steps
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Discussion Period & Tempcheck Survey (2 Weeks): The DAO invites open community dialogue and feedback before formalizing the tranche execution schedule.
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Governance Vote (2 Weeks): Upon conclusion of the discussion & tempcheck survey phase, a formal Snapshot vote will determine the final tranche structure and potential dust classification adjustments.
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Implementation: Subject to approval, Tranche 1 distributions will commence in Q1 2026, with subsequent tranches following the proposed schedule or as modified by DAO decision.
Convenience Class Remediation Tempcheck Survey
This 2-week poll closes on 2025-12-09 at 23:59:00Z
Please select 1 option below whether the DAO should reshape the previously ratified convenience class remediation approach, and if so, how.
- Option 1 — Approve Revised Distribution Schedule with Dust Reclassified as < $25 (Remove Tranche 7)
- Option 2 — Approve Revised Distribution Schedule with Dust Reclassified as < $50 (Remove Tranches 6 & 7)
- Option 3 — Approve Revised Distribution Schedule with Dust Reclassified as < $100 (Remove Tranches 5, 6 & 7)
- Option 4 — Approve Revised Distribution Schedule with Dust Reclassified as < $250 (Remove Tranches 4, 5, 6 & 7)
- Option 5 — Reject Proposal (Single Distribution When Appropriate, No Dust Reclassification)