WAX (WAXP) Things You Need To Know Before Investing

Riya KapoorJune 30, 2022

2 minutes read

Table of Contents

What Is WAX (WAXP)?

WAX (WAXP) is a purpose-built blockchain released in 2017 that is designed to make e-commerce transactions faster, simpler and safer for every party involved. The WAX blockchain uses delegated proof-of-stake (DPoS) as its consensus mechanism. It is fully compatible with EOS.

The custom features and incentive mechanisms developed by WAXP are intended to optimize the blockchain’s utility specifically for use in e-commerce to encourage voting on proposals.

To make this possible, WAX created a suite of blockchain-based tools upon which decentralized application (DApp) marketplaces and non-fungible tokens can be built.

Services such as WAX Cloud Wallet, SSO, and OAUTH support e-commerce operations, the latter being a native RNG service and a developer portal. WAX’s blockchain architecture supports 500-millisecond block time and zero-fee transactions for customers. It also uses voting rewards to incentivize participation in the selection of block producers and improvement proposals.

Who Are the Founders of WAX?

William Quigley and Jonathan Yantis co-founded WAX.

William Quigley studied at the University of Southern California and then worked at Disney. After leaving Disney in the early 1990s, he got an MBA at Harvard and became a venture capitalist. Over time, he became the managing director at Idealab. Alongside creating WAX, he is also the managing director at Magnetic.

Jonathan Yantis works as the chief operating officer at WAX and as the chief operating officer at OPSkins.

What Makes WAX Unique?

WAX features a WAXP-to-Ethereum (ETH) bridge that allows WAXP token holders to convert their tokens into WAXE, an Ethereum-based ERC20 utility token.

Users willing to participate in WAX tokenomics must burn their WAXP tokens to get WAXE through the Ethereum bridge. They will then need to stake the WAXE tokens on the Ethereum distribution contract.

WAXG is an Ethereum-based ERC-20 governance token that is distributed to WAXE stakers. The distribution is based on a set timetable and is proportionate to the percentage of the WAX Economic Activity pool. The token holders can govern the platform’s allocation and distribution of economic value.

The WAX Economic Activity pool is a smart contract that accumulates a percentage of generated WAX fees and can be converted into ETH for distribution to WAXE stakers. It can also be given to WAXG token holders that decide to burn the tokens they already have.

How Is the WAX Network Secured?

WAX network’s DPoS consensus is secure against the corruption of a significant minority or producers. Token holders can select WAX guilds by voting in a continuous approval system. They can get an opportunity to produce blocks, and token holders can persuade other token holders to vote for them.

A block is produced on the WAX blockchain every 0.5 seconds; as such, one WAX guild is authorized to produce a block at any given time. If a block is not produced at the scheduled time, the block for that time slot is skipped. When one or more blocks get skipped, another gap in the blockchain of 0.5 seconds or more is added.

WAX guilds do not receive WAX rewards if they produce 50% or less of the scheduled blocks, which discourages skipping blocks.

WAX has created a full suite of blockchain-based tools that allow anyone to trade digital or physical items instantly and securely.