WAX Goes Deflationary

Over the past two months, we’ve been dialing in how resources are distributed and how inflation is managed. The result? On-chain inflation is down to just 4.8%, and it’s still trending lower. These aren’t minor tweaks — we’re reversing the old model to build the most sustainable, self-funded Layer 1 blockchain economy in Web3.

Here’s what’s changing — and why it matters to every WAX user.

Reversing the Model: From Inflation to Burn

WAX has always been about accessibility and performance. Now, we’re flipping our resource model to future-proof the chain.

Where we started:

• 90% of chain resources accessed via staking
• 10% accessed via PowerUp

Where we’re headed:

• 90% via PowerUp
• Only 10% through staking

Right now, we’re around 60/40 PowerUp to staking — but we’re not stopping until we hit the 90/10 target. This shift isn’t just more efficient — it’s foundational to building a blockchain powered by real usage and activity, not just locked-up tokens.

More PowerUp = fewer new tokens minted = more WAXP burned. It’s that simple.

September 2025: A Deflationary Milestone

As outlined in our recent post “Streamlining Governance & Funding: The Next Chapter for WAX Blockchain”, we’ll be phasing out the final stage of the Guild Rewards Parachute by September 2025.

Once complete, this move will slash inflation by another 1%, pushing the network even closer to zero inflation or complete deflation, depending on usage.

Instead of minting new tokens to fund the chain, we’ll rely more on actual usage to cover operational needs. It’s a bold step — and it’s one that few other chains are willing (or able) to take.

Building a Blockchain That Runs Like a Business

Most blockchains survive on endless inflation. But we’re done with that. We’re building a network that funds itself through real usage, like any healthy business should.

That’s why PowerUp is key. It lets users pay a small fee per transaction instead of locking up large amounts of WAXP. These fees are routed through our variable inflation system, where unused inflation is burned, reducing supply and strengthening token value.

A self-sustaining, usage-driven economy — designed for long-term value.

What About Staking?

While PowerUp is becoming the go-to method for accessing chain resources, staking still plays a crucial role in the WAX ecosystem.

It’s no longer the most efficient way to power transactions, but it remains the only way to earn voting rewards, currently offering an impressive ~9% APR. By staking and voting for Block Producers, you’re not just supporting the network; you’re earning meaningful returns. So, use PowerUp for your transactions, but don’t sleep on staking if you’re looking to grow your WAXP stack.

Why This All Matters

This is more than a backend upgrade. It’s a total rethink of how blockchain tokenomics should work:

• Sustainable: We’re actively reducing inflation instead of inflating endlessly.
• Usage-Powered: Network activity fuels infrastructure, not speculation.
• Fair: You pay based on how much you use, not how many tokens you hold.
• Scalable: This model is built to grow with adoption, not collapse under it.

We’re building a blockchain that acts like a business and rewards users for using it.

WAX is setting a new standard for Layer 1 blockchain sustainability. We’re building a future where usage burns tokens, inflation is no longer required, and the network thrives on activity, not endless supply.

Let’s build it together.

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