# What is the WAXP token?
$WAXP is the native token of the WAX blockchain. WAXP enables you to start collecting NFTs and participate in the global WAX ecosystem.
Utility and Functions of the WAXP Token: Transaction Fees: The WAXP token serves as the primary medium of exchange for transaction fees within the WAX ecosystem. Whether it's trading digital assets, participating in marketplace activities, or engaging in decentralized applications (dApps), users utilize WAXP tokens to facilitate transactions while enjoying the efficiency and speed of the blockchain.
Staking: WAXP holders can participate in staking, which involves locking their tokens for a specified period to support the network's security and integrity. By staking WAXP tokens, participants contribute to block production and consensus, earning rewards in return for their contribution.
Voting and Governance: WAXP token holders have the power to shape the future of the platform through voting and governance activities. They can vote for block producers, validators, or participate in important decision-making processes related to network upgrades, protocol changes, and community initiatives. This democratic approach ensures a decentralized governance structure and empowers token holders to actively participate in the platform's development.
# Tokenomics Mechanisms:
The WAX blockchain has introduced a new tokenomic model that combines the growth of non-fungible tokens (NFTs) with the monetization capabilities of decentralized finance (DeFi). The WAXP token, the native cryptocurrency of the WAX blockchain, plays a crucial role in this model. The new tokenomic model involves linking the economic value generated from NFT activity on the WAX blockchain to the Ethereum DeFi ecosystem. By leveraging the strengths of each blockchain, WAX aims to create a leading NFT collectible market experience.
The WAXP token facilitates NFT transactions and is no longer burned when converting into WAXE. Instead, the deflationary mechanism is now based on burning 20% of accrued economic activity fees. WAXP holders can stake their tokens and participate in the WAX DeFi ecosystem, earning rewards and contributing to network security. The WAXP-ETH Bridge allows for the seamless transfer of value between the WAX blockchain and Ethereum, leveraging Ethereum's position as the monetary hub for various blockchains. With this tokenomic model, WAX aims to provide sustainable value to stakers and capitalize on the potential of the NFT market, positioning itself as the go-to NFT platform.
# Benefits for Token Holders:
Rewards: WAXP token holders who actively participate in staking or voting may receive rewards in the form of additional WAXP tokens. These rewards incentivize long-term commitment, network participation, and contribute to the token holder's overall stake.
Governance Influence: Holding WAXP tokens grants individuals the power to influence the governance and decision-making processes within the WAX ecosystem. Token holders can actively shape the direction of the platform, ensuring their voices are heard and their interests are represented.
The WAXP token serves as the backbone of the WAX blockchain, powering its vibrant ecosystem and enabling a wide range of activities. From transaction fees to staking, voting, and governance, the WAXP token empowers users to actively participate, shape the platform's future, and enjoy the benefits of network engagement. With carefully designed tokenomics, distribution mechanisms, and potential incentives for token holders, WAXP offers a compelling value proposition for those seeking to be part of a thriving and decentralized digital asset ecosystem.