What is WAX
WAX (Worldwide Asset Exchange) is a blockchain with a primary focus on NFTs, marketing itself as the most used and transacted blockchain ecosystem in the world for NFTs, dApps, and video games”. The network’s ecosystem includes major names from the gaming scene such as Atari, as well as famed musicians, movie studios, and sportsmen.
The innovative vIRL NFTs introduced by WAX differ from standard NFTs, by featuring dynamic functionality that includes app/video game integrations, marketing tools, and V-commerce capabilities.
How does WAX work
The WAX blockchain utilizes a Delegated Proof-of-Stake (DPoS) mechanism to achieve consensus, through which token holders vote on delegates acting as validators for new blocks on the chain. The WAX blockchain has 21 WAX Guilds (block producers) who earn rewards for producing blocks based on the number of blocks they produce. Each WAX Guild is chosen to produce blocks in rounds of 126, based on six blocks for each of the 21 Guilds.
Guilds are evaluated by a neutral third-party role named “Inspector General”. This role consists of a committee with three members which evaluate whether the WAX Guilds are making valuable contributions to the WAX ecosystem.
There are also Standby Guilds, or Reserve Guilds, which act as backup operators and earn a share of WAX Guild Rewards for participating and demonstrating their ability to process a block when randomly requested.
WAX produces a new block every 0.5 seconds, however, if a block doesn’t get produced at the scheduled time – it gets skipped and the transactions remain in the memory pool waiting for the next guild to include them in the next block. To decentivize skipping of blocks, the network doesn’t reward guilds that produce 50% or less of their scheduled blocks.
The WAX blockchain supports Smart Contracts which get executed when a set of predetermined conditions, or rules, get met with the records for legal transfer and activity being stored on the blockchain for transparency reasons. WAX Smart Contracts reside on a WAX account and have a 12-character, readable label chosen by the creator of the account. Each account can send actions to other accounts within the WAX ecosystem, where the transaction gets handled by the code residing on the target account.
The network has a Random Number Generator (RNG) algorithm used by dApp developers to introduce randomized outcomes in cases such as generating a digital collectible or NFT. The proper workings of an RNG are an important part of the fair distribution of values, making it an important factor in customer confidence.
The algorithm chosen for generating random numbers on WAX is the Signidice algorithm, due to its non-gameable characteristics and cleaner workflow for dApp developers. There is also RSA (Rivest-Shamir-Adleman is a public-key cryptosystem widely used for secure data transmission) verification which ensures the uniqueness of the signature and removes the ability for the result to be manipulated. The two mechanisms working in symbiosis make the WAX RNG a self-verifying service confirming the authentication of the RNG vector before it being utilized by the dApp.
How to use WAX
The WAX app supports non-fungible tokens using the Simple Assets open-source standard. The blockchain utilizes a service called WAX-On to generate, mint, and store NFTs.
To incentivize and compensate community developers who build upon the WAX blockchain, there is a WAX Worker Proposal System (WWPS) which allocates WAX tokens to developers working on community needs, patches, and upgrades. The WWPS gets funded by a 1% WAX annual inflation.
A WAX account or a WAX wallet is an account said to provide more utility than a standard wallet since it can view many kinds of non-fungible assets, as well as integrate with functions like voting and staking.
The WAX NFT Creator is a self-service tool allowing anyone to create NFTs on the WAX blockchain in minutes for free, the tool doesn’t require any technical knowledge from users.
WAX fees include a 2% Network Fee on all secondary market transactions of NFTs, which is collected, aggregated, and distributed to network participants.
WAX staking
Staking WAX tokens allows users to vote and earn WAX staking rewards. WAX tokens can be staked through the official WAX wallet, as well as through compatible solutions such as Lynx, Sqrl, and Scatter. All WAX token holders can vote for up to 30 WAX Guilds, where the strength of their vote depends on the number of WAX tokens they have staked.
Moreover, dApp developers can also benefit from staking their WAX tokens since that helps reserve system resources, as RAM allocation can be purchased and sold to meet the needs of the developer. WAX doesn’t charge dApp developers any network fees, which is made possible thanks to the staking mechanism and WAX staking rewards.
WAX staking rewards are issued each day, when a set number of WAX tokens get set aside for staking rewards. The number of tokens WAX stakers earn in the form of rewards is equal to their stake weight, relative to other stakers.
The WAXP, WAXE, and WAXG token
WAXP is the network’s utility token and comes with a total supply of 1.85 billion tokens. The token was launched through a two-tier pre-sale in October 2017 and a public sale in November 2017. The presale amounted to 300 million tokens sold to institutional investors for 70,000 ETH, while 210 million tokens were sold in the public pre-sale for 70,000 ETH.
Out of the WAXP total supply, 35% were allocated for token sale participants, while 20% were kept for the core development team of the WAX blockchain with a six-month lockup period, 30% were given to early contributors and advisors, and the remaining 30% was retained for future distribution to developers and sellers on the network’s marketplace.
The WAX tokenomics model was updated in January 2021 targeting the Ethereum mainnet as the “monetary system for all blockchains'', according to WAX co-founder William Quigley. To become part of the Ethereum ecosystem, the network devised two new tokens – WAXE, and WAXG, as well as WAXP to Ethereum bridge allowing WAXP to be converted to WAXE.
WAXE is an ERC-20 utility token, through which anyone wishing to do so can burn WAXP tokens to receive WAXE and then stake them in the Ethereum Distribution Contract for rewards.
WAXG is an ERC-20 governance token, governing the allocation and distribution of WAX network-derived economic value to the Ethereum mainnet. WAXG is distributed to WAXE stakers in accordance with a set timeframe and in proportion to each staker’s weight in the WAX Economic Activity Pool.
How to buy WAX WAXP token
WAX WAXP token can be purchased on centralized exchanges like Binance, Crypto.com, and HitBTC.
WAX WAXP token can be purchased on decentralized exchanges like Uniswap v2.
Disclaimer
It is up to you where to buy the WAXP token. It is worth taking into account that decentralized exchanges allow you to do this anonymously, you do not need to pass KYC procedures to use them, on the other hand the cost of transactions may be higher than on centralized exchanges, while there is a risk of your funds being held by the exchange.
Disclaimer
To understand if WAX is a good investment and try to make a WAXP price prediction, you need to do your own research on the project.
All the data for research is available on the project page on our website: check out the technical features of the project in this review, try to use the app, see if the information about the team is available and the team is open for communication, and using the project dashboard and the WAXP price chart, assess the project usage rates as well as the token price movement and the number of its holders.
Is WAX safe
The WAX blockchain was created by the team behind OPSkins – one of the world’s leading marketplaces for online game assets. The WAX team is led by its founders William Quigley, John Brechisci Jr., and Jonathan Yantis. William Quigley acts as the current CEO of the project, while John Brechisci Jr. is the Lead Designer of WAX, and Jonathan Yantis serves as the company’s COO.
WAX advisors include video game industry professionals, such as Dave Anthony who is the creator of the popular game series – Call of Duty, Brian Fargo – founder of Interplay Inc. and inXile Entertainment, Ken Cron – former CEO of Vivendi Universal Entertainment.
Ecosystem & Partners
Members of the WAX ecosystem include Topps – a project issuing NFTs featuring sportsmen from the Major Baseball League in the USA, Capcom – developer of legendary video games such as Street Fighter, Mega Man, Resident Evil, Devil May Cry, Monster Hunter, and many others.
WAX is also the home ground of Funko, Atari, Sony’s Funimation, numerous famous movie productions, as well as world-renowned musicians, such as Deadmau5, Weezer, and William Shatner.
What's next
There is no roadmap WAX is working on currently.
Links
https://github.com/worldwide-asset-exchange/whitepaper#how-the-wax-platform-works
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Last updated: Oct 25, 2022
