WAX

Understanding WAX (WAXP): The Worldwide Asset eXchange

WAX (WAXP) is a purpose-built blockchain designed specifically for e-commerce and digital collectibles. Launched in 2017, the Worldwide Asset eXchange has positioned itself as an eco-friendly and user-friendly platform for NFTs (Non-Fungible Tokens), virtual items, and digital collectibles. WAXP serves as the native utility token of the WAX blockchain ecosystem.

How Does WAX (WAXP) Work?

The WAX blockchain operates on a Delegated Proof of Stake (DPoS) consensus mechanism, which makes it significantly more energy-efficient than Proof of Work blockchains. This architecture allows WAX to process transactions quickly and with minimal fees, making it ideal for microtransactions and frequent trading of digital items.

WAXP utilizes a governance system where token holders can vote for Guild Members (similar to block producers in other DPoS systems). These elected Guilds are responsible for validating transactions and maintaining the network's security. The WAX blockchain includes several components:

• WAX Cloud Wallet: A user-friendly wallet that simplifies the onboarding process for new users
• WAX Creator: Tools for creating and minting NFTs without coding knowledge
• AtomicHub: A popular marketplace for WAX-based NFTs
• WAX vIRLs: Virtual items with real-life redemption capabilities

WAXP Staking and Resource System

Yes, WAXP offers staking opportunities, but in a somewhat different format than traditional staking models. When you stake WAXP tokens, you receive three key resources:

WAX Staking Mechanics

WAX implements a resource staking system where WAXP token holders can stake their tokens to receive:

• CPU: Computational power on the network
• NET: Network bandwidth for transactions
• RAM: Storage space on the blockchain

By staking WAXP, users can earn rewards in the form of WAXP tokens. The current staking APR (Annual Percentage Rate) varies based on network conditions and the total amount staked. Additionally, stakers can participate in governance by voting for Guild Members who maintain the network.

Mining on WAX

WAX does not support traditional mining since it operates on a DPoS consensus mechanism rather than Proof of Work. Instead of mining, WAX relies on its elected Guilds to validate transactions and produce blocks. These Guilds are rewarded with WAXP tokens for their services to the network.

Users can "mine" WAX in a non-traditional sense by participating as Guild Members if elected through the governance system, or by staking their tokens to earn rewards over time.

What is WAXP Used For?

The WAXP token serves multiple functions within the WAX ecosystem:

• Marketplace Transactions: WAXP can be used to purchase NFTs and digital collectibles on WAX marketplaces
• Staking: Users can stake WAXP to obtain CPU and NET resources needed for transactions
• Governance: WAXP holders can vote on key decisions and elect Guild Members
• Gas Fees: WAXP covers transaction fees on the network, which are typically very low
• DeFi Activities: Used in various DeFi applications built on the WAX blockchain

WAXP Token Distribution

WAX (WAXP) was initially launched through an ICO (Initial Coin Offering) in November 2017, raising approximately $9.6 million. The initial distribution of WAXP tokens was structured as follows:

• 64% allocated to contributors in the token sale
• 20% reserved for the founding team and advisors (with vesting periods)
• 15% retained by the WAX Foundation for development and marketing
• 1% distributed through bounty programs

The total supply of WAXP is capped at 1,850,000,000 tokens, making it a deflationary asset in the long term.

Notable Features and Partnerships

WAX has distinguished itself through several key features and collaborations:

Environmental Focus

WAX markets itself as a "carbon neutral" blockchain, using significantly less energy than Proof of Work blockchains. According to the WAX team, the blockchain uses 220,000 times less energy than Ethereum (prior to Ethereum's move to Proof of Stake).

Major Brand Collaborations

WAX has partnered with major brands and celebrities to release exclusive NFT collections, including:

• Topps (for MLB, Star Wars, and Garbage Pail Kids collectibles)
• deadmau5
• Atari
• William Shatner
• Capcom

vIRLs Technology

WAX's vIRLs (Virtual Items in Real Life) allow NFT owners to redeem physical items associated with their digital assets, creating a bridge between virtual collectibles and tangible merchandise.

Trading WAXP with Cryptohopper

WAXP can be traded on various cryptocurrency exchanges, and investors can optimize their trading experience using Cryptohopper's automated trading bot. Cryptohopper allows users to set up sophisticated trading strategies for WAXP and other cryptocurrencies, with features like technical analysis, trailing stops, and portfolio management. This automated approach helps traders capitalize on WAXP's price movements without needing to monitor the market 24/7.

Future Outlook for WAX (WAXP)

As the NFT and digital collectibles market continues to evolve, WAX (WAXP) aims to solidify its position as a leading platform in this space. The ecosystem's focus on user-friendly tools, low transaction fees, and environmental sustainability positions it well for continued adoption. With ongoing developments in interoperability and cross-chain functionality, WAXP may see increased utility as digital assets become more mainstream.