The WAXP token is the utility token of the WAX blockchain. It is used for governance, resources and trading NFTs. I will try to break down each part as well as I can, without going to deep into the complex aspects. Essentially WAXP is the token people mean when they say WAX. 

The WAXP token

The WAXP token circulating supply at the time of writing is 2,052,438,269.10357237. Of that 85% is staked for resources on the Blockchain. That means we have about 300m WAXP in liquid supply across all users and exchanges.

WAXP can be broken down into 8 digits, meaning you can own, transfer and sell NFTs for as little as 0.00000001 WAXP, which would at the time of writing be roughly $0,000000003.

You can find the up to date information here: https://wax.bloks.io/chain

The WAX token has an inflation rate of 5% that is split between staking rewards and block rewards. Staking rewards is for any user that stake WAXP tokens into resources and vote for guilds. The block rewards are paid out to guilds that operate infrastructure for the WAX Blockchain. This way, the ecosystem covers the costs of the blockchain. More on that later.

Staking WAXP for Resources

On WAX, you can interact with the blockchain for free. This is different from Proof of Work blockchains where you have a Transaction fee associated with all actions you do. So if you play a game, or trade NFTs, or transfer tokens, you will have to pay a fee for that action to be added to the blockchain ledger. 

On WAX, this process is free, but will require you or someone else to stake WAXP tokens for resources. Why I say someone else, is because DAPPs, games, marketplaces etc can stake enough resources to cover the resources required. Does it sound complicated? Don't worry, we will go through it in greater detail in the Chapter on Resource management.

Basicly you will need a certain amount of WAXP tokens staked into CPU and NET resources on your account. The amount required will differ based on overall chain usage as well as how much you intend to utilize the blockchain, meaning, how many actions you intend to do per day.

As an example, if you stake 100 WAX to CPU, it will allow you to do X things on the blockchain every day. If you try to do more, you will receive an error. At that time, you can stake more, or wait 24h until your resources are reset.

CPU resources are highly utilized for actions such as buying NFTs, playing games etc, while NET resources are barely used for normal users. Meaning if you stake a few WAX into NET you will never be limited by that, while CPU you might need 50-5000 WAXP depending on how much you do.

If you at any time want to get your WAXP back, you are free to unstake your WAXP. This process takes 3 days (72 hours) and can only be done with the amount of WAXP you do not currently use. Which means that if you have done a lot of actions today, and you want to unstake all your WAXP, you have to wait until tomorrow to unstake the portion of your WAXP that was used today.

Where can you buy WAXP tokens?

They are sold directly inside the cloud wallet through 3rd party options, they tend to be convenient but have a markup on the price. 

For best price, you are better off going to one of the 3rd party exchanges that are available.
You can find an up to date list of marketplaces and trading pairs here: https://www.coingecko.com/en/coins/wax#markets

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}