What Is WAX
WAX (Worldwide Asset eXchange) is a blockchain-based platform that provides a decentralised and secure digital goods marketplace for gamers, collectors, and enthusiasts to transact with virtual goods and assets. It facilitates the creation, trading, and management of online gaming items, collectables, and non-fungible tokens (NFTs).
WAX aims to provide a decentralised and efficient marketplace for trading digital goods while ensuring that the platform is user-friendly and provides developer-friendly tools and features.
How Does WAX Work
WAX uses a delegated Proof of Stake (DPoS) consensus mechanism to validate transactions and secure its network. DPoS is a variation of the Proof of Stake consensus mechanism, that features a voting and delegation mechanism that makes the process more democratic. In addition, because of the limited number of WAX Guilds (block producers/delegates), WAX is able to achieve consensus faster as it reduces the amount of time it takes to reach consensus and validate blocks, allowing it to handle up to 12,000 transactions per second (TPS).
In WAX’s DPoS, WAX Guilds validate transactions and produce new blocks in the network. Participants, who are token holders, have the right to vote for up to 30 WAX Guilds. The more tokens the individual or entity holds, the more influence their vote carries.
The top 21 guilds elected will be block producers. Participants in the network can nominate themselves to become delegates but they will need to seek votes from other participants.
Delegates who are elected will take turns producing new blocks in a round-robin manner. Each delegate gets a chance to create a block based on the number of votes they receive. The more votes a delegate receives, the more blocks they produce.
Multiple delegates will independently validate the same block to confirm its authenticity, which helps ensure the integrity and security of the network. In exchange for successfully creating a block on the network, delegates receive a portion of the transaction fees as rewards.
WAX Key Features
These are some of the key features of WAX:
Digital Asset Trading
WAX allows for the creation, trading, and management of digital assets such as in-game items, virtual collectables, and skins. These assets are tokenised on the blockchain which makes them easily tradable and transferable.
For example, customers can purchase a pair of sneakers from someone on the other side of the world and have possession of the tokenised good within seconds. While the possession of the physical goods is subject to shipping, the team at WAX believes that it is “far more efficient to inspect and certify the sneakers once and to change hands many times digitally before the actual sneakers are pulled out of a warehouse and sent to the last person who redeems them.”
WAX supports cross-chain compatibility with other blockchains such as the EOS blockchain, enabling digital assets to move between different blockchain networks. This allows WAX to achieve greater interoperability and makes it easy to use assets on the WAX platform with other blockchain-based applications and services.
WAX has developed NFT standards that ensure compatibility and interoperability across various applications and platforms, helping create a unified NFT ecosystem.
Speed and Scalability
WAX is able to handle up to 12,000 transactions per second (TPS), making it one of the fastest and most scalable blockchains. For comparison, Polygon can only process 7,000 TPS.
WAX enables the fractional ownership of digital assets which means that users can own a portion of an NFT or virtual item, making it more accessible for a larger audience.
WAXP is the native and utility token of WAX. These are several of its use cases including, but not limited to:
Staking & Rewards
WAXP token holders who stake their tokens can earn additional WAXP. The amount of tokens earned by token holders corresponds to their stake weight, relative to other stakers. For example, if the token holder’s stake amount is 1% of the aggregate stake weight, they will receive 1% of the WAX Staking Rewards amount.
WAXP holders can participate in WAX network governance such as voting on proposals, upgrades, and changes to the network. There are three types of voting on WAX: guild voting, proxy voting, and worker proposal voting.
By staking, token holders can vote for guilds (guild voting) or designate a proxy, who votes on the token holder’s behalf using their staked WAX (proxy voting). Token holders can also vote for proposals that are put forth by other WAX token holders (worker proposal voting).
WAXP has a total supply of 4,061,652,673 tokens of which 3,368,560,238 tokens are in circulation as of October 2023.
The planned distribution of WAXP tokens is as follows:
- Community – 45%
- Investors – 24.9%
- Founder – 15%
- Treasury – 13.3%
- Advisors – 1.8%
WAXP reached an all-time price high of $5.01 on December 22, 2017. Since its all-time high, the price of WAXP has fallen by more than 90% as of October 2023. With a circulating supply of 3.37 billion WAXP tokens, WAX has a market capitalisation of $160.82 million.
Who Created WAX
WAX was founded in 2017 by William Quigley and Jonathan Yantis. Quigley graduated with an MBA from Harvard and had previous working experience at Disney. He was the managing director at Idealab and is currently the CEO and co-founder of WAX and managing director of Magnetic.
Yantis is the COO and co-founder of WAX and was the founder of the world’s first digital item marketplace, having managed the growth of joint operations to $1 billion in revenue after the merger with Internet Gaming Entertainment. He was also a board member of Mastercoin which held the first Initial Coin Offering (ICO) ever. The team has over 20 years of experience building digital goods businesses such as OPSkins.com.
WAX has managed to raise a total of $52 million in funding over 5 rounds as of October 2023. Some notable investors in WAX include Hashed, Node Capital, and OKX Ventures.
How To Trade On The Flipster App
To trade WAXP on Flipster:
- Download the Flipster app and set-up your account
- Go to [Trade]
- Click on [Search] at the top of the page and type in WAXP
- Click on WAXP
- In the [Amount] field, type in the amount of WAXP you wish to buy or sell. Alternatively, you can select the percentages below to choose how much to use from your available funds.
- Click [Preview order] to check your order
- Once you have confirmed the details, click on [Buy WAXP – Long] button or [Sell WAXP – Short] respectively.
Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service.
Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.