The Wax blockchain has been following the trends in decentralized finance for some time, and is now hopping onto the DeFi bandwagon by tying its economic activity to the Ethereum blockchain. Co-founder William Quigley announced a new WAX tokenomic model in a blog post, which will introduces a decentralized finance system fueled by NFT transactions.
Traders of digital assets earn WAXP for their activity. The development team of Wax has build a bridge to converts WAXP to WAXE on the Ethereum blockchain. Holders of this ERC20 utility token can stake the token, and earn WAXG rewards. WAXG is a governance token what allows owners to govern the distribution of WAXG.
So far Wax has always positioned itself as a blockchain for digital collectibles. Sure, there are some games, but the biggest noise is happening around collectible trading cards. Quigley wants to link ‘the value created from that activity to Ethereum’. The co-founder of Wax is very bullish on the future of NFTs, which – according to him – will dwarf the $100 billion set by digital downloads in the non-blockchain gaming world.
“Every consumer product that can not be eaten, will become an NFT”William Quigley, blog post September 30th 2020
The boss of Wax sees blockchain maximalism as a dying philosophy. He believes every blockchain will gets its own specialism. In the case of Wax that’s collecting and trading NFTs, but for Ethereum that could very well be decentralized finance.
Decentralized Finance so hot right now
Wax is the first that connects its own blockchain activity to decentralized finance on the Ethereum blockchain. How decentralized finance can take all kinds of shapes. Providing liquidity in trading pools is just one way, but in gaming we’re also seeing different forms of decentralized finance shaping up. MEME Token already connected DeFi with crypto art, and Aavegotchi is gamifying decentralized finance as well.
The Sandbox has the SAND token, which can be earned in-game. Players can use these earnings to buy new digital assets, ranging from characters to land. Creators who made these digital assets or gaming experiences, will also earn SAND. At the same time users can provide liquidity for trading pairs on Uniswap. This just shows that a gaming economy has many different layers that are interesting for all kinds of participants.
Just like Wax the city building game MegaCryptoPolis is also doing something that works across different blockchains. This allows traders to acquire resources on the Tron blockchain, and sell them on the Ethereum blockchain. But of course this can also happen the other way around. In addition Blankos Block Party wants to allow users to trade their digital assets across different blockchains. The developers call this a frictionless NFT economy.
Robert Hoogendoorn is a gamer and blockchain enthusiast. He got in touch with crypto in 2014, but the fire really lit in 2017. Professionally he’s a content optimization expert and worked for press agencies and video production companies, always with a focus on the video games & tech industry. He’s a communication consultant for blockchain start-ups and writes not only for Play to Earn, but also other dapp websites and tech magazines.