This is our third communication regarding the WAX Blockchain and Protocol Token release, following last week’s announcement about the Genesis Block Member program.
Encouraging active and engaged voters with WAX Block Rewards
Every successful blockchain project is built around an engaged community. The more involved the community, the better the blockchain will operate for everyone. This is especially true of DPoS based blockchains where many important decisions, like block producer selection, are determined by community voting. Yet it can be challenging to get people to vote. We are aware of how other DPoS blockchains have been adversely affected by voter apathy. To drive community interest in the voting process, we’ve developed WAX Block Rewards.
Driving staking and voting on WAX with WAX Block Rewards
WAX Block Rewards is the voting and rewards system that we’ve designed to increase community participation in the selection of guilds and blockchain improvement proposals. Detailed instructions on staking and voting will be released as we approach the mainnet launch but here’s a summary of what you’ll do:
1. Stake your WAX Tokens. If your WAX Tokens are not staked, you will need to stake them using a Scatter wallet. If you have Genesis WAX Protocol Tokens, then they are already staked.
2. Vote via your Scatter wallet. If you have Genesis WAX Protocol Tokens in a WAX Blockchain account, you will need to connect a Scatter wallet to the account to vote. All WAX Token holders can vote for up to 30 WAX Guilds. The strength of your vote for any particular guild depends on the number of WAX Tokens you have staked.
3. Earn WAX Block Rewards. WAX Token holders who stake their tokens and then vote with them will earn additional WAX Tokens. These earnings are called WAX Block Rewards and are issued directly from the WAX Blockchain.
dApp developers also benefit from staking their tokens because it helps reserve system resources (CPU and Network). RAM allocation can be purchased and sold to meet the needs of the dApp developer. The staking mechanism and WAX Block Rewards combination makes no-fee transactions possible. We do not have to charge dApp developers for running the infrastructure that enables transactions to be processed due to Guild Block Rewards, and by staking tokens dApp devs claim their necessary allocation. It also prevents network spam from locking out legitimate transactions because everyone is rate-limited based on what they are allotted.
What functions can I perform by staking my WAX?
Staking your WAX Tokens allows you to vote on the WAX Blockchain, and earn WAX Block Rewards for doing so. You will need to vote weekly to maintain the strongest vote strength and earn maximum rewards (details on vote strength are in the next section). There will be three types of voting on WAX:
- Guild voting: Stake a fixed amount of your WAX Tokens to vote for guilds. For example if you stake 1,000 WAX Tokens, you may assign 1,000 votes each for up to 30 different guild candidates.
- Proxy voting: You can designate a proxy, who will then vote on your behalf using your staked WAX, which earns you WAX Block Rewards. If your proxy does not vote, it does not affect your vote strength; however, you will need to keep your proxied vote updated to retain full vote strength similar to guild voting.
- Proposal voting (post-launch): Stake your WAX Tokens to vote for proposals that are put forth by other WAX Token holders (proposal submission and voting will be live after the mainnet launch).
How do I earn WAX Block Rewards by staking my WAX Tokens?
You can earn more WAX Tokens every day with Staking Baseline Rewards, which are one type of WAX Block Rewards, simply by voting.
A set number of WAX Tokens will be set aside each day for Staking Baseline Rewards. The number of tokens that each individual WAX Token holder receives daily depends on their stake weight, relative to other stakers. For example, if your stake weight amounts to 0.5% of the aggregate stake weight on any given day, you will receive 0.5% of the Staking Baseline Rewards amount. The amount of Staking Baseline Rewards given to individual voters is based on their current stake weight:
- Stake weight: the number of WAX Tokens that you currently have staked multiplied by your vote strength.
- Vote strength: is a number anywhere between 0 and 1 (e.g. 0.08, 0.25 etc), with 1 being full vote strength. If you vote weekly, you maintain the highest possible vote strength. If you do not vote weekly, your vote strength will decay. Your stake weight will be 0 when the WAX Blockchain mainnet launches and will remain at 0 until you vote, at which point it will increase to 1.
For example, if you vote in any given week, your vote strength is then 1. If you do not vote again, then your vote strength will decay until it approaches zero. You can increase it back to 1 by voting.
Therefore, it is in your best interest to vote regularly to maximize your WAX Block Rewards. Additionally, by voting regularly you are contributing to the selection of quality guilds and proposals - supporting the overall health of the WAX Blockchain.
Specifics on the amount of Staking Baseline Rewards that WAX Token holders can earn will be released as we approach the mainnet launch.
It is likely we will introduce additional types of WAX Block Rewards in the future.
Are there other rewards that I can earn with my WAX Tokens in addition to WAX Block Rewards?
Yes, there are two types of rewards that can be earned in addition to WAX Block Rewards: WAX Guild Rewards and Genesis Block Member program rewards.
WAX Guilds and WAX Guild Rewards
The WAX Blockchain is designed with 21 WAX Guilds who earn rewards for producing blocks. These WAX Guild Rewards are granted based on the number of blocks produced by each WAX Guild. Standby guilds can also earn a share of WAX Guild Rewards. These backup operators can earn rewards for participating as reserve guilds and demonstrating their ability to process a block when randomly requested to do so.
Guild candidates can begin submitting proposals before June 30, 2019. We will release instructions for applying to become a guild, and specifics on the number of WAX Tokens to be earned from WAX Guild Rewards, as soon as possible.
Genesis Block Member program rewards
Last week we introduced the Genesis Block Member (GBM) program. GBM participants will receive daily WAX Token rewards for 3 years. For more information, including eligibility requirements, please read this blog post.
Even more ways to earn WAX Tokens are coming
- At mainnet launch: The WAX Blockchain is designed to be the best platform for video gaming and e-commerce dApps. It will also be fully backward compatible with EOSIO. More information about the dApp experience on WAX will be detailed in our next announcement.
- After mainnet launch: Transfer agents and WAX Marketplace are other ways to earn WAX Tokens. Both will be introduced at a later date.
Let us know what you think by joining the WAX community:
Disclaimer: WAX reserves the right, at its sole discretion, to modify, change, edit, alter, delete and/or replace the terms of the launch of, and other information concerning, the WAX Mainnet found in this post at any time and without notice. You are encouraged to check the latest information on the launch of the WAX Mainnet on the WAX website at https://wax.io/.