Note: The original article was written by Kaydee!
The rise of NFTs has had a profound impact on the digital ownership landscape. Designed specifically for the needs of NFT fans and innovators, the WAX blockchain has become an important platform in this space.
What makes WAX different is that it takes a user-friendly approach. If you look at the WAX website, you will see that it is different from some complex blockchain platforms. The WAX website interface is very simple and users can easily buy, sell and trade NFTs on it. Due to its ease of use, the platform has attracted a large number of active collectors and creators.
However, WAX is more than just a user-friendly platform, it also emphasizes the concept of "interoperability." NFTs created on WAX can be migrated to other blockchain systems. This is very important for creators because it allows them to reach a wider audience and potentially sell their NFTs at a higher price.
Another reason for WAX's popularity? Creating NFTs on the WAX blockchain is easy. WAX simplifies the NFT creation process, making it easy for even beginners to get started. Because of this, many creators have chosen to join the WAX blockchain and create a variety of NFTs on WAX, including digital artwork, digital collectibles, and even video game items.
WAX has also been at the forefront of incorporating NFTs into video games. Games like Alien Worlds and Street Fighter, for example, allow players to acquire and exchange unique in-game items like NFTs. This opens up a whole new way for players to own virtual assets and potentially profit from them, which is really exciting. So it’s no surprise that WAX is attracting a large number of gamers to the blockchain.
Now, if you ask me how WAXP fits into all of these amazing achievements, my answer is simple, because WAXP is the “secret ingredient that makes the WAX world run.” Yes, WAXP is the primary utility token of the WAX Blockchain, and it powers a variety of features within the WAX Ecosystem.
If you’re not familiar with the concept of utility tokens, let me explain. A token is a digital unit of value stored on a blockchain. Tokens created on a blockchain can represent a variety of things, including currency, access rights, and even virtual goods. Likewise, the purpose of a token is very wide, ranging from secure financial transactions to access to unique content in games.
Tokens fall into two categories: cryptocurrencies and utility tokens. Cryptocurrencies, such as Bitcoin and Ethereum, are digital assets that primarily serve as a medium of exchange. They can be used to make online purchases or store value. Utility tokens have a more specialized function within a specific blockchain ecosystem. They can provide access to decentralized applications (DApps), represent ownership of digital assets within a game, or even serve as a reward unit for participating in a certain platform.
Okay, let's get back to WAXP, the unique utility token in the WAX ecosystem. First and foremost, WAXP is the engine that fuels the WAX NFT marketplace. It is the primary currency for buying and selling digital collectibles, facilitating both original NFT sales and secondary market transactions. As such, this provides a seamless and secure experience for everyone, including creators, collectors, and traders.
However, WAXP serves more than just a means of transaction. The WAX token economy supports a vibrant NFT market. As of 2021, WAX is far and away the most widely used blockchain in terms of transactions. Essentially, the value generated by these transactions is fed back into the WAX ecosystem, and that value is tied to the performance of the WAX blockchain, especially in the NFT space. Simply put, the more people use WAX for their NFT needs, the higher the potential value of WAXP.
Holding WAXP allows you to fully participate in the WAX ecosystem, and staking is an important part of participation. Let's take a look at the benefits of staking WAXP from a practical perspective. First, by staking WAXP, you gain access to CPU and NET resources, which allow you to smoothly trade on the WAX Blockchain. This will ensure that you have enough "processing power" and "transaction speed" to participate in activities such as buying and selling NFTs. Secondly, by staking WAXP, you can also vote for guilds. Guilds are entities responsible for validating transactions and maintaining the network, and you can vote for the guilds that you think will be most beneficial to the development of the WAX Blockchain (I will explain this in detail later).
Staking WAXP can bring some great rewards, but it’s important to remember that rewards are not guaranteed and can vary! Some rewards may come from voting for a guild, while others may be provided by specific applications on WAX.
Unlike some staking platforms that lock assets for a long time, staking WAXP is highly flexible. You can easily cancel the stake at any time, and the unstaked resources will be returned to your account after 72 hours. This degree of freedom allows you to adjust your staking strategy according to your personal needs. In essence, staking WAXP makes you a true insider in the WAX ecosystem. Staking WAXP not only facilitates transactions, provides possible rewards, but also provides you with the opportunity to participate in the development of the WAX blockchain (through voting).
While staking is not a surefire way to get rich, it does offer a compelling set of practical benefits to anyone looking to actively participate in the WAX Blockchain. Through the WAX Guilds’ unique voting system, WAXP holders play an important role in maintaining and shaping the WAX Blockchain. As I mentioned earlier, the voting system revolves around the entities responsible for validating transactions and maintaining the security of the WAX Blockchain network.
The WAX Blockchain is a thriving marketplace for digital goods. Tens of thousands of transactions are processed every day on the WAX Blockchain, but someone has to verify them to ensure everything happens smoothly and securely. That's where the WAX Guild comes in. They act as security guards and transaction checkers, verifying transactions and ensuring the integrity of the entire WAX Blockchain.
The WAX Guild Voting System is a bit like a community council for the WAX Blockchain, similar to a Decentralized Autonomous Organization (DAO). The goal is to give everyone who uses WAX a say in the future of WAX. Voting may not guarantee you a beachfront mansion, but there are certainly potential benefits to participating in WAX governance. You may receive some rewards just for voting, as well as other rewards provided by the specific Guild you voted for.
WAX knows that not everyone has the time to become a Guild expert, so they developed a handy technology called Proxy Voting. With proxy voting, WAXP holders are able to delegate their voting power to someone they trust, like a proxy. The proxy then votes on their behalf using criteria that corresponds to the ideals of the WAXP holder. This way, even if you’re new to the WAX Blockchain, as long as you hold WAXP, you still have a say in the future of the WAX Blockchain!
Please note that choosing a proxy requires careful consideration. It is important to choose a proxy that aligns with your vision for the WAX ecosystem. To help you make this decision, the WAX community provides resources such as the Office of Inspector General, which evaluates guild activity. Additionally, the Proxy Voting Platform allows you to view the track record and value of different proxies before delegating your vote.
Another important thing to remember is that your voting power is not set in stone! To maintain fairness and promote active participation, the voting system encourages active participation from WAXP holders. If you are inactive for a while, your voting power will gradually decrease. Fortunately, it is easy to restore your voting power! Simply stake more WAXP, vote again (even with the same proxy), or simply claim any rewards you have earned, and your voting weight will be increased.
I must also add that as the WAX Blockchain grows and gain more acceptance, the value of WAXP will also rise. Obviously, a healthy ecosystem with more users participating will increase the value of WAXP. However, it is also important to maintain reasonable expectations as a WAXP holder. The cryptocurrency market is inherently volatile, and so is WAXP, and its value is determined by various market variables that the WAX platform cannot control.
WAX is committed to building a stable, user-friendly digital collectibles platform. Owning WAXP and participating in the WAX ecosystem will give you access to a wide range of features and the opportunity to grow with WAX in the long term. Whether it's staking to support transactions, participating in governance votes, or simply enjoying the benefits of WAX's secure and efficient marketplace, WAXP provides you with the practicality you need. So while there is potential for WAXP to appreciate in value, the real focus is on the practicality and functionality that WAXP provides to its owners.
Getting started with WAXP is very simple. You can purchase WAXP through various cryptocurrency exchanges such as Binance, OKX, Kucoin, etc. These platforms allow you to purchase WAXP using fiat currencies such as USD or EUR, or allow you to redeem it for other cryptocurrencies you may already hold. Once you have WAXP, you can transfer it to a WAX Wallet such as MyCloud Wallet, which will allow you to interact with the WAX Blockchain and explore the many features it has to offer.
Finally, I want to reiterate that as a WAXP holder, you have the opportunity to become an active participant in the WAX ecosystem. You have the power to shape the future of the blockchain and even profit from its long-term growth. If you are not a WAXP holder yet, there is no need to wait any longer, it is time to use WAXP to fuel your WAX adventure and discover the many benefits that the WAX Blockchain has to offer!
*Friendly reminder: This article is for popular science purposes only and does not constitute any investment advice!
