WAX is using the Delegated Proof of Stake model (DPOS), Which is differet from Proof Of Stake (POS) and Proof Of Work (POW), now this is not going to be a course on consensus mechanisms, but if these words are new for you, you can check out this video that compares POS and POW.
DPOS is similar to POS that you stake your tokens, but the main difference is that you actually stake it towards a team, rather than just for yourself. By you voting for one or multiple teams with your stake, you entrust them to verify the blockchain. The main reason to use DPOS over POS is to add speed and efficency to the blockchain. Some may argue that it's a less secure consensus mechanism, but I'd argue that in any big blockchain, DPOS is a highly secure, efficient and smooth model.
Another big upside to the DPOS model is that it's highly environmental friendly. It doesn't consume a lot of power, while still being highly decentralized. On WAX we have 21 elected teams (guilds) that verify each transaction and block on WAX. They are spread out all over the world. On top of that we have a chunk of standby teams, ready to jump in if they get more votes than any of the top 21, or if any of the top 21 guilds have any type of technical problems.
To operate a guild on WAX, you are required to have a lot of high end hardware and a small team that is available 24/7 in case anything goes bad. On top of that, each month the Office of Inspector Generals (OIG), We'll go through their role later, review all guilds, their metrics as well as their contribution to the WAX ecosystem. They then rank the guilds based on their contribution and encourage everyone to vote according to that list. So far, the top 21 from their rating is the top 21 on WAX. The WAX OIG are an elected entity consisting of 3 independent reviewers with direct communication with the WAX team.
The Guilds are paid by the blockchain for their work, so ensuring that they continue to add value is highly important, something that the OIG has as their main priority. The standby teams are also paid, although less than the top 21.
Short info on the voting
By voting for 16+ teams or voting through a proxy, you are eligible for voter-rewards. That is because voting is essential for the long-term success of the WAX Blockchain.
The best way to vote for guilds is actually to vote through a proxy, because you as a user are not expected to keep up to speed with what all the guilds are doing, or how to rate them, and adjust your votes every month based on the new OIG guild review documentation.
What a proxy does is vote with your tokens for guilds according to their standards. I run one of those proxies called "waxcommunity", where I only vote for teams that I deem are adding value to the community, as well as are fully capable of securing their infrastructure and thereby securing the WAX Blockchain. If you do not want to delegate your vote through my proxy (I earn nothing from it), I can also recommend voting through the kaefergeneral proxy.
- Link to vote: https://wax.bloks.io/vote/proxies?name=waxcommunity
Summary
There are 21 elected guilds validating the WAX Blockchain, they are independant teams spread out all over the world. Their metrics and work is reviewed every month by an elected entity called the WAX Office of Inspector Generals. WAXP holders can stake their tokens for resources and then delegate the vote weight of their stake towards guilds. The best way to do this is to vote through one of the proxies on WAX.