What is Waxe (WAXE) Crypto? Is it the same with WAX?

As the digital asset landscape continues to evolve, new tokens emerge with distinct use cases and technological frameworks. 

One such token that has sparked curiosity is WAXE. At first glance, it may seem synonymous with WAX, another prominent crypto asset, but the reality is more nuanced. 

This article explores what WAXE is, how it differs from WAX, and why understanding the distinction is essential for anyone engaging in blockchain gaming, NFT trading, or crypto investing.

What Is WAXE?

WAXE is a cryptocurrency token that operates on the Ethereum blockchain as an ERC-20 asset. With a total fixed supply of 3,700,000 tokens, WAXE plays a specialized role within the WAX ecosystem. 

While WAXP (commonly referred to as WAX) serves as the primary transactional token on the WAX blockchain, WAXE is used as a bridge token that facilitates interoperability between the WAX and Ethereum ecosystems.

The token enables users to convert WAXP into WAXE, providing a gateway for those interested in engaging with Ethereum-based DeFi protocols and services. 

It also functions within the governance structure of the WAX platform, granting holders a voice in ecosystem decisions.

Read also: WAX (WAXP) vs WAXE (WAXE): What’s the Difference and Which One Should You Use?

WAXE vs. WAX: What’s the Difference?

The distinction between WAXE and WAX (WAXP) lies in both utility and technological underpinnings:

• Blockchain Network:
  • WAXE: Built on Ethereum, primarily used for bridging and governance.
  • WAX: Native to the WAX blockchain, used for transactions, gaming, and NFT marketplaces.
• Utility:
  • WAXE: Allows users to interact with DeFi platforms, earn staking rewards, and participate in governance through the WAX Economic Activity Pool.
  • WAX: Facilitates fast, fee-less transactions on the WAX blockchain, ideal for NFTs and gaming.
• Supply:
  • WAXE: Limited to 3.7 million tokens.
  • WAX: Has a significantly larger circulating supply, with over 4 billion tokens.

In summary, WAXE is not a replacement or duplicate of WAX, but rather a complementary asset that enhances the WAX ecosystem's flexibility and reach.

Key Use Cases of WAXE Token

1. Bridging Between Blockchains 

WAXE allows users to convert their WAXP holdings into Ethereum-compatible tokens, enabling participation in Ethereum-based DeFi protocols. This bridge technology is central to WAX's vision of seamless interoperability across chains like Solana, Polygon, Base, and TON.

2. Governance and Economic Participation 

Holders of WAXE can stake their tokens to earn yields from the WAX Economic Activity Pool. They also gain the right to vote on proposals that shape the future development of the WAX ecosystem.

3. Enhancing Web3 Gaming Ecosystems 

WAXE plays a role in expanding the reach of blockchain-based games. It allows developers and players to integrate Ethereum-based utilities, rewards, and NFTs into the WAX gaming environment, further enriching user experiences.

Read also: What is Dexe Network and it's token DEXE?

Security and Infrastructure

WAXE leverages Ethereum's robust smart contract infrastructure, offering security through:

• Decentralized node validation via Proof-of-Stake (PoS).
• Advanced encryption standards to safeguard transactions.
• Compatibility with hardware wallets for secure offline storage.
• Routine third-party security audits.

These features provide confidence for users holding and interacting with WAXE in DeFi applications and cross-chain transactions.

Major Milestones and Innovations

• Exchange Listings: WAXE is available on multiple exchanges, improving its liquidity and market visibility.
• NFT Generator Tool: Launched by WAX, this tool empowers creators to mint NFTs seamlessly.
• Gaming Developments: WAXE supports a growing portfolio of blockchain games such as REVN, WAR OF STEEL, and DOGS OF WAR.
• Launch of PLAYA3ULL Mainnet: Strengthens the WAXE ecosystem with a dedicated blockchain for gaming.
• Supply Control: A 10% burn mechanism has been introduced for the 3ULL Coin, impacting tokenomics.

Conclusion

WAXE is an essential component of the WAX ecosystem, offering more than just an Ethereum version of WAXP. As a bridge token, it allows for interoperability, governance, and deeper DeFi integration. 

Understanding its unique role and features is crucial for anyone involved in blockchain gaming or digital asset management. While it shares the WAX brand, WAXE is a distinct and powerful tool in its own right.

FAQ

What is WAXE?

WAXE is an ERC-20 token on the Ethereum blockchain used for bridging, governance, and staking within the WAX ecosystem.

Is WAXE the same as WAX (WAXP)?

No. WAXE is built on Ethereum and is used for DeFi and governance, while WAXP is native to the WAX blockchain and used for transactions and NFT applications.

What can WAXE be used for?

WAXE enables users to bridge tokens, participate in governance, stake for rewards, and access Ethereum-based applications.

Is WAXE secure?

Yes, WAXE benefits from Ethereum’s security features, including PoS consensus, encryption, and hardware wallet compatibility.

Can WAXE be staked?

Yes. Holders can stake WAXE to earn yields from the WAX Economic Activity Pool