Network Fees on WAX are redistributed to the WAX Community
WAX implements a 2% Network Fee on all NFT secondary market transactions on the WAX blockchain, which will be collected, aggregated, and then distributed to participants in the WAX DeFi model. That means that every time an NFT is bought and sold on a WAX-powered marketplace, such as Atomic Hub, Myth.Market, Collectables.io, etc., a portion of that transaction is collected as a Network Fee and paid out to the community via the WAX DeFi system on Ethereum.
While other chains have implemented gas fees and resource models that can inhibit growth, the current resource model on WAX makes transactions run far more smoothly. However, WAX’s current resource model alone is not sufficient for healthy tokenomics that rewards stakers. As such, the new WAX DeFi model introduces additional rewards to ensure healthy tokenomics that can allow the WAX ecosystem to flourish, and these newly implemented Network Fees are the engine driving this new tokenomic model. For this mechanism to function, all marketplaces powered by the WAX Blockchain are responsible for implementing the standard Network Fee collection and aggregation framework.
The WAX Blockchain will continue to perform the core NFT operational functions (i.e., item creating and trading), since it was designed specifically for that purpose and outshined every other blockchain in this area. With the launch of the new WAX inter-blockchain tokenomic model, WAX leaps to become a fourth-generation utility token with the token value being directly linked to economic activity on multiple blockchains, each selected for its optimal performance. More precisely, WAX is taking what it does best — creating, selling, and trading NFTs — and linking the value generated from that activity to Ethereum, the blockchain world’s monetary system, by enabling those who participate in the WAX DeFi model to earn a portion of NFT sales taking place on WAX.
By implementing this new system, WAX provides a sustainable source of value to stakers with a DeFi model fueled by NFT transactions — a market with attractive long term prospects and where WAX is strongly positioned as a clear leader. You can read more about the new DeFi and Tokenomic model, including how participants of the WAX ecosystem benefit from the collection of Network Fees, here.