WAXHISPANO

Today, we’re diving into the enhanced world of WAX Blockchain’s tokenomics. As the digital economy undergoes rapid transformations, it is crucial to evolve our tokenomics to ensure the blockchain operates more efficiently and aligns the growth of tokens with the activities on the blockchain.

How Current Tokenomics Functions: A Quick Recap

Before diving into the changes, let’s recap how our current system operates:

1. Staking & Voting: Users stake their WAXP Tokens for CPU/NET. By staking WAXP for account resources and voting for Guilds or a proxy, stakers receive rewards in the form of WAXP. Engaging in this process weekly maximizes rewards.

In the existing model, 5% more tokens are introduced every year via a static inflation mechanism. This distribution goes towards:

• (2%) Top 21 Block Producers and Standby’s: A portion is allocated to compensate these pivotal & decentralized entities in our ecosystem.
• (2%) Rewarding Active Participants: Those who stake their WAXP tokens for CPU/NET and actively vote for WAX Guilds (block producers) receive staking rewards.
• (1%) WAX Labs Proposals & Savings: Funding innovative proposals that promise to enhance the WAX ecosystem.

2. WAX DeFi on Ethereum: Through waxdefi.io, users have the opportunity to participate in the WAX DeFi system that allows participants to receive a portion of the WAX Blockchain network economic activity fees collected by Marketplaces and dApps.

You can learn more about this here.

Changes to WAX DeFi & Upcoming Key Deadlines

As WAX continues to evolve, significant changes to the WAX DeFi ecosystem are on the horizon. Notably, the final WAX DeFi epoch distribution is scheduled for Wednesday, December 20, 2023. Additionally, the collection of 2% Network Fees by Marketplaces and dApps will cease on Tuesday, December 19, 2023. Any Network Fees gathered post-December 19 will be systematically burnt, aligning with our commitment to a sustainable token economy.

For participants in WAX DeFi, it’s crucial to take note of these upcoming dates. We strongly advise claiming your final DeFi rewards after December 20, 2023. Additionally, burning your WAXG rewards is essential to obtain your proportional share of the Piggy Bank pool rewards. We also suggest that WAX DeFi participants initiate the unstaking process of their WAXE-ETH Uniswap Liquidity Pool Tokens using the WAXDeFi site. Subsequently, you can reclaim your WAXE and ETH liquidity from the WAXE-ETH Uniswap Liquidity Pool directly on Uniswap here.

The bridge facilitating the transfer of WAXE from the Ethereum network to WAXP on the WAX Blockchain will remain operational. Furthermore, the conversion bridge from WAXP to WAXE at a 1:1000 ratio will continue to be available. However, please note that this service is set to be discontinued in 2024.

The WAX Team established a new Uniswap WAXP-USDT pool, providing initial liquidity to facilitate easier access to WAXP and the WAX NFT ecosystem. This new pool will serve as an alternative to the WAXE-ETH Uniswap Liquidity Pool. We invite the WAX Community to engage with this new Uniswap pool, contributing additional liquidity and earning rewards as part of the Uniswap Liquidity Pool program.

These steps mark a significant transition in our tokenomics and DeFi strategy, paving the way for a more streamlined and efficient WAX ecosystem.

Introducing Enhanced WAX Blockchain Tokenomics

We’re excited to unveil the latest updates in WAX Blockchain’s tokenomics, adapting to the evolving blockchain landscape:

• Operating Cost Linked to Blockchain Utilization: We’re transitioning from a static inflation model to a more dynamic approach. The new WAX PowerUp Mechanism links operational costs to the transaction rate. This system collects transaction fees, offsetting static inflation and creating a balance between chain costs and transaction volume.
• WAX PowerUp Mechanism for Pay-Per-Transaction: Once users exhaust resources from their WAXP stake, the WAX PowerUp Mechanism enables a pay-per-transaction option. Staking for resources is ideal for dApp operators and advanced users familiar with the WAX Blockchain resource model. Regular users will gradually move to pay-per-transaction system, mirroring experiences in other fee-based ecosystems like EVM chains, while ensuring low transaction costs due to the advanced WAX technology. CloudWallet Boost will continue to offer regular users a set number of free transactions daily.
• Variable Inflation Model: Transaction fees collected through the WAX PowerUp Mechanism will impact the WAX Blockchain’s inflation rate. This introduces a variable inflation system where fees can reduce inflation to zero or, in case of a shortfall, trigger up to the current maximum 5% rate. If fees exceed operational costs, this will trigger token burning, potentially creating a deflationary scenario.

These updates are designed to closely align the blockchain’s operational costs with its activities, aiming towards a zero or negative inflation rate. If you’re into the nitty-gritty, you can access the tech details here.

Future Enhancements On the Horizon

Our vision for WAX doesn’t stop here. Upcoming features aim to offer:

• Simplification of WAX Blockchain Resources: We’re working on abstracting the transaction fee calculation mechanism, making it easier and more user-friendly.
• Enhancements in Account Creation and RAM Utilization: Our goal is to eliminate the CloudWallet paywall and simultaneously reduce the operating costs for block producers, making the WAX ecosystem more accessible and efficient for all users.

We’re committed to enhancing WAX’s tokenomic framework for the community. Aligning costs with on-chain activities lays the foundation for a balanced digital economy. With a user-centric approach and potential deflation on the horizon, we’re optimistic about WAX’s future prospects for both casual and large-scale participants.

Stay connected for further updates, and a heartfelt thank you for being an integral part of the WAX NFT ecosystem!

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