The WAX Blockchain team has officially announced that they are making various upgrades to their existing model in an effort to revolutionize their ecosystem.

Upgrade Details

In order to successfully transition to the new updates, the developers are making some important changes to the WAX DeFi ecosystem. This means that the last WAX DeFi epoch distribution is on December 20th, while the collection of 2% Network Fees by Marketplaces and dApps will stop functioning on December 19th, causing Network Fees collected after that date to be burnt. According to the announcement, they “strongly advise claiming your final DeFi rewards after December 20, 2023.” It’s also mentioned that burning your WAXG rewards is “essential to obtain your proportional share of the Piggy Bank pool rewards.” It’s also suggested to start unstaking WAXE-ETH Uniswap Liquidity Pool Tokens using the WAXDeFi site.

The bridge for transferring WAXE from Ethereum to WAXP on the WAX Blockchain will continue to work. Converting WAXP to WAXE at a 1:1000 ratio will still work, though the team does state that the service is planned to be discontinued in 2024.

A new Uniswap WAXP-USDT pool has been set up to serve as an alternative to the previously mentioned pool.

One of the new updates making their way to the network’s tokenomics include linking operating cost to blockchain utilization. This marks a switch from the static inflation model to a more dynamic method in which the new WAX PowerUp Mechanism “links operational costs to the transaction rate,” gathering transaction fees while “offsetting static inflation” and striking a “balance between chain costs and transaction volume.”

WAX PowerUp Mechanism

The WAX PowerUp Mechansim provides a pay-per-transaction option for when users use up all their resources from the WAXP stake, making the network more similar to other fee-based blockchains while offering low transaction costs. This will simplify the experience for regular users, while anyone familiar with the chain’s resource model will still be able to continue making transactions as before.

Variable Inflation Model

The inflation rate of the blockchain will be affected thanks having fees gathered through the new WAX PowerUp Mechanism, enabling a variable inflation system in which fees can cause inflation to go to zero or “in case of a shortfall, trigger up to the current maximum 5% rate.” When fees “exceed operational costs,” tokens are burned, leading to the potential of having a deflationary model.

“These updates are designed to closely align the blockchain’s operational costs with its activities, aiming towards a zero or negative inflation rate.”

Other upcoming features making their way include simplifying WAX Blockchain resources while making improvements in account creation and RAM utilization by removing the CloudWallet paywall and lowering operating costs for block producers.

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