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WAXP (Wax) - Worth Buying?

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@revisesociology
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4 min read

I was first attracted to Wax when it became possible to sell @splinterlands cards on the chain, and having played around on the Wax ecoystem I'm now wondering whether I should hold on to the Wax tokens I've made from selling a few Splinterlands assets.

WaxP is currently trading at $0.14 and its price has been on a downtrend for the last three months, although broadly level for the the last three weeks, and this might be a good buying opportunity if yer interested!

What is Wax?

Wax is a digital Market place for digital items such as computer game assets and NFTs more generally, built on an EOS compatible chain, and bridged to other chains such as Ethereum and Hive.

The Wax token enables users to buy and sell digital items, set up their own marketplaces, and stake and vote for worker proposals, so it also has a governance function.

This video from CoinBureau is worth a watch if you want to find out more...
https://www.youtube.com/watch?v=NNuPmal5VpU

Wax Has Clear Use Cases

What appeals to me about Wax is that I was introduced to it through actually being able to use it - by transferring some of my Splinterlands cards directly to the Wax chain and then listing them for sale on the Atomic Hub Market Place.

This isn't supposed to be a 'how to guide' so I wont' go into depth about how to list cards for sale, but I managed to figure it out easily enough - NB you get a small amount of 'RAM' for free when you sign up with an account, but I did have to buy some Wax to buy some RAM etc to be able to list more than 3 cards at once, but that wasn't too much of an investment!

In short, it's very easy to do the following on Wax Market Places, it's all fairly intuitive:

  • browse items
  • buy items
  • list items

Of course you need WaxP to be able to do all of this, and you may need to stake a certain amount (10-20 Wax should be sufficient for most casual users), a bit like HIVE) of Wax to oil the wheels, but it's easy enough to get hold of on Bittrex or Huobi, and staking to be able to use the account is easy...

Setting up a Wax account is easy....

Given that Wax is targeting the gaming market, aiming to empower millions of gamers with the ability to trade their in-game assets it makes sense that it has an easy account sign up process - you can create a Wax account (basically a wallet!) , and then log in to your Wax wallet with Facebook or your Gmail account.

Given that Hive similarly targets masses of users, it could maybe learn something from this?!?

Tokenomics/ Staking

Wax is a Delegated Proof of Stake chain with 21 Wax Guilds (like Witnesses on Hive) confirming Half second blocks.

There is a Max supply of 3.5 billion WaxP tokens, with 1.6 billion having been printed, so half way there.

There is 5% annual inflation (burns not factored in) - 2% to staking, 2% to Wax guilds, and 1% to rewarding worker proposal system.

You can stake Wax tokens and vote for guilds and worker proposal systems, much as one can do on Hive - and if you want to earn rewards for staking your Wax, you MUST VOTE.

According to Staking rewards.com Wax yields a 4.4% return with just under 50% of tokens currently staked.

DEFI on Wax

There is an option to burn WaxP for various other tokens, but it's all done on ETH so I won't be touching it, and you can stake these new forms of token to liquidity pools and earn ETH.

To be honest this all looks a bit clumsy to me, so it's something I'll leave!

Future Price Potential

Given the value of the gaming market and NFTs Wax is well-positioned to capture a slice of the pie, and even a small price of the pie could mean a large increase in market cap and token price.

But hang on, Can't Hive do Everything Wax can Do?

The only downers on Wax I can see are the competitors - ENJIN springs to mind, and something else that occurs to me - it all feels a bit like HIVE too - targeting the mass market (gamers/ social media), 21 block producers, stake your WAX to be able to participate after getting a little bit for free?

I don't really see anything Hive can't do just as well if not better than Wax?

And if Splinterlands runs on Hive, and the market is integral to the game, surely this means Hive has the capacity for more markets? (Well there's already the NFT market I know!)

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