What is WAX?

The core of the Worldwide Asset eXchange, WAX is both the platform’s currency of exchange, but also a key component in ensuring its in-game item trading is fast and secure.

The first part of the equation is the easiest to explain.

As well as acting as a currency, WAX is designed to maintain the platform’s delegated proof of stake system

As a decentralised global exchange for in-game assets, people can buy and sell items for games such as CS:GO and PUBG using the WAX platform, with the WAX token used to buy items. Of course, if they are selling an item, they will receive WAX once a transaction is completed.

As with Gas in the case of the Ethereum net, a small amount of WAX will also be used to set up transactions i.e. listings and in terms of communications between users.

All settlements on the WAX platform use the token, which is divisible to 18 decimal places to allow the platform to support micro-transactions in future.

Greasing the wheels

More significant than its currency utility, however, are WAX’s properties in terms of ensuring the WAX platform meets the needs of its community.

Without going into too much detail – you can read more here – each game supported by the WAX platform requires a node or Guild to ensure the operation of the underlying blockchain but also to ensure the trading of in-game goods.

At the cost of 10 WAX, anyone can propose a new guild, either to support a new or existing game, or support for a specific game server. Games can be supported by multiple guilds if there’s enough community demand.

Each guild gains WAX from maintaining the blockchain and a proportion is given back to its voters

Each WAX holder is also given eight votes which they use to support guilds. At set times, everyone votes and the top ranked guilds are enable. WAX will launch with 64 guilds and an increase will occur in increments of eight.

Each guild gains WAX from maintaining the blockchain and facilitating trading, and a proportion of this is given back to its voters as a reward.

In this way, as well as acting as a currency, WAX is also designed to maintain the platform’s delegated proof of stake system.

Testing times

The WAX ICO was completed in late 2017, with $41 (or $63) million raised, depending on what source you read.

This sale released 35% of the total 1,850 million WAX tokens ever be created. The split of the remaining WAX tokens can be seen below.

As the WAX platform is not expected to launch until the end of 2018, the token currently has very little utility value, although it can be used on the OPSkins in-game exchange, which is acting as the platform’s test environment.

Trading is dominated by the HuobiPro exchange, which accounts for over 95% of volume.