We analyzed different methods to reward our community, and we concluded that a token is the most interesting and engaging one.
We will airdrop $AXT to our delegators every month with a scheduled inflation rate and preset rules.
AXT is a ZRC-2 standard token. It will run on Zilliqa blockchain that soon will be interoperable with the Tradehub chain. We chose Zilliqa for many reasons: a strong partnership with Switcheo, low transaction fees, mainstream adoption, and easy to learn programming language. With Zilswap we have the opportunity to start a pool after the token launch where AXT will be traded, but we hope shortly to be able to trade it on Demex.
Token name: AX token
Ticker symbols: AXT
Total supply: 1.000.000
Circulating supply: table 1
Core mechanism: AXT will be redeemable for the 90% of total AX validator collected fees.
- The total supply of AXT will be 1 million tokens in the first 2 years, with a programmed monthly release (table 1). After this period we will think of a different model depending on future developments.
- 1 AXT gives the right to redeem AXvalidator profits with this formula:
1AXT= 90% of total collected fees of AXvalidator/Circulating Supply of AXT.
-10% of the profits are for AXvalidator team
-Circulating supply will be visible at any time on the Zilliqa blockchain
-Total collected fees will be visible at any time on Tradescan, but we will disclose this information periodically. For total fees, we consider all the fees collected from our validator originated from the Switcheo inflation rate and trading fees. Fees collected in tokens different from SWTH will be converted in SWTH.
-The period valid for AXT redemption to validator profit is scheduled for every December. At the moment we believe the process will be done manually, but we don’t exclude that it will be possible to do that automatically in the future.
-We understand that not all token holders will like to wait a long period to redeem their AXT. To resolve this issue we will create a pool where the token can be traded if you are not comfortable waiting. The pool will be deployed in the next 3 weeks on Zilswap and we will move to Demex as soon as possible.
table 1. AXT Programmed Distribution
Every first week of each month we will distribute AXT to all eligible delegators.
Eligible delegators are delegators who have staked in AXvalidator for the entire previous month and meet criteria depending on the period:
- Launch period
February: All delegators who have started a delegating position between 18 February to 25 February and hold until 28 February at least 25k SWTH. Every wallet that meets these criteria will be airdropped equally a share of the February token supply. (es. 50 wallet will share 10000 tokens equally 200 token per wallet)
- Period A
From March to the end of May: First 100 delegators for the number of SWTH delegated will share equally the token supply for each month. Minimum 25k SWTH delegated.
- Period B
From June Onward: the first 50 delegators will share equally the token supply delegated. No minimum delegated.
AX team reward: If the validator does not have downtime in a monthly period, the team will be rewarded with 7629 AXT in that month. We think this is a good incentive for us to guarantee a strong validator’s performance and cover server expenses.
To be rewarded with an AX token on your Zilliqa wallet we need to link it with your wallet delegating token on TredeHub. To do so, we need a message from your SWTH wallet that states your Zilliqa address. Further details for the linking will be provided in the next post on medium.
Our token smart contract has a burning function that will be used in these situations:
- if AXvalidator commits a slashing downtime, the 7629 AXT monthly team’s reward will be burned.
- Any eligible wallet that fails the linking process will lose its monthly airdrop. Half of these tokens will be burned and the other half goes in a wallet that will be used in the future for promotion.
- We may consider in the future to buyback AXT tokens with AXvalidator profits if AXT is traded considerably under fair value. All tokens bought back in this way will be burnt. Everything will be communicated in time.
AX HOLDING TEAM