Introduction
In the world of cryptocurrency and online earning in DeFi, new projects constantly emerge, making it often challenging to determine which ones are trustworthy. For many investors, it’s essential to understand that a project is not just another scam or financial pyramid scheme. Today, I’ll talk about the Axiome project, which draws attention with its innovative approach to delegation and transparency. Let’s explore the key aspects of delegation in this project’s ecosystem. If you’re looking for reliable and promising cryptocurrency investment opportunities, keep reading to find out what makes Axiome special and whether it deserves your trust.
What is Delegation
Delegation is the process by which cryptocurrency holders transfer their tokens into the custody of validators, allowing them to use these tokens to confirm transactions and maintain the blockchain. This is the primary mechanism in blockchains that use the Proof-of-Stake \PoS\ model or its variations, such as Delegated Proof-of-Stake \DPoS\. Delegation enables token holders to participate in securing the network and receive rewards for their assets without engaging in the technical aspects of validation.
Delegation is an excellent way for cryptocurrency holders to earn passive income without delving into the complex technical details of blockchain operation.
In the Axiome ecosystem, delegation plays a crucial role. AXM token holders can delegate their assets to validators who are responsible for confirming transactions and maintaining network security. It enables users to earn a stable income from their tokens and actively participate in the project’s development.
In simple terms, delegation is like entrusting your money to a reliable person (validator) who will use it to work and generate profits for you while you relax.
According to information from their Telegram channel, Axiome plans to introduce a floating rate mechanism for delegation rewards in June.
What is this mechanism designed for?
- Strengthening the Stability of Axiome Chain
Delegation is a crucial element in ensuring the stability and security of the Axiome network. When users delegate their tokens to validators, they contribute to the decentralization and resilience of the network, preventing potential attacks and enhancing its reliability.
In simple terms, delegation helps make the Axiome network more stable and secure. Participating in delegation is not only beneficial for investors but also crucial for the overall health of the Axiome network.
- Mining New AXM Tokens
The delegation mechanism also serves to create new AXM tokens. Validators, who confirm transactions, receive rewards in the form of new tokens, which are then distributed among them and delegators. This helps maintain economic activity within the ecosystem.
In general, delegation helps to mine new tokens, which are then distributed among all participants. This mechanism
supports the growth of the Axiome ecosystem by ensuring a continuous influx of new tokens into the network.
- Providing the Community with an Attractive Income Source for Years to Come
One of the key objectives of delegation is to offer users a stable and appealing income source. With the high rewards for delegation, users can anticipate long-term profits, making Axiome an enticing investment platform.
Stble and high returns from delegation make Axiome an excellent choice for those seeking long-term investment opportunities.
The reduction of free circulation of AXM tokens.
The delegation mechanism also helps reduce the number of AXM tokens in free circulation. When users delegate their tokens, they temporarily withdraw them from active circulation, which can positively impact the token’s value by reducing its availability on the market.
Exactly, delegation reduces the number of available tokens on the market, which can increase their value. By decreasing the availability of AXM coins through delegation, it helps maintain their value and makes investments in Axiome more profitable.
There are two main types of rewards for delegation:
The first type is Mining new AXM tokens.
Delegators in the Axiome ecosystem receive rewards in the form of new AXM tokens. When users delegate their tokens to validators, these validators confirm transactions and support the network’s operation. For their work, they receive rewards in the form of newly created AXM tokens. These tokens are then distributed among validators and delegators proportionally to their contribution.
Exactly, you’re essentially lending your tokens to the validator, who then uses them for operations, and both of you receive new tokens as a reward. It’s like depositing money into a bank and earning interest for the use of your funds. But instead of interest, you receive new coins, making the process not only profitable but also exciting.
By the way, on the project’s website axiome.pro, you can access the block explorer, where all information about validators and transactions is openly displayed. I recommend paying attention to the “Uptime” indicator – the higher this indicator, the more stable the validator is.
Example
If you delegated 10,000 AXM tokens and the validator you entrusted your tokens to earned rewards in the form of new tokens, you will receive your share of these new tokens. For example, if the validator’s total income amounted to 2,000 new AXM, your share could be up to 2,000 AXM, minus the validator’s commission.
Second Type – Share of Network Fees
In addition to new AXM tokens, delegators also receive a share of the network fees. Every time a transaction occurs on the Axiome network, a fee is charged. A portion of this fee is burned to control inflation and reduce the total number of tokens in circulation, while the remaining portion is distributed among validators and delegators.
Every time someone makes a transaction on the network, you receive a portion of the fee charged for that transaction. It’s like receiving a commission for every operation at a bank, except with Axiome, these fees also contribute to the growth of the value of your assets.
Example
If you delegated your tokens and the validator you entrusted your assets to processed transactions totaling 100,000 AXM with a 1% fee, then the total fee amount would be 1,000 AXM. From this amount, 30% will be burned, and the remaining 70% will be distributed among the validator and delegators. Your share of these fees will depend on your contribution.
They have provided more details about this mechanism with examples in their guide \Link).
Risk Minimization Mechanism
To minimize risks in the Axiome ecosystem, a comprehensive risk management mechanism has been developed, which includes several key elements:
- Decentralization of Validators
Delegators can distribute their tokens among multiple validators, reducing the risks associated with potential errors or missed rewards by individual validators. The more validators participate in the transaction confirmation process, the higher the stability and reliability of the network.
Exactly, it’s like investing money in different banks to reduce risks. This provides additional security for your assets.
- Transparency and Validator Ratings
On the Axiome platform, information about the performance of each validator is available, including their Uptime (time without failure). The higher the Uptime, the more stable the validator. Delegators can choose validators with the highest ratings to minimize risks.
These validator ratings help make informed decisions and minimize risks associated with delegation.
- Floating Rewards Rate Mechanism
To control inflation and ensure stability, a mechanism of floating rewards
rate has been introduced. The reward rate depends on the ratio of all delegated AXM to the total number of mined tokens. If this ratio is 85% or higher, the reward rate will be maximum — 20% per month. As this ratio decreases, the reward rate also decreases.
Here is the table of reward rates:
The mechanism operates autonomously, monitoring the ratio with each block produced in the Axiome Chain (approximately every 5 seconds). Therefore, its response to changes is instantaneous.
Monitoring and Management
Users can track the status of their delegated tokens and the current reward rate in real-time through the Axiome Wallet application. This enables them to react promptly to changes and make informed decisions.
Continuous monitoring enables users to stay informed about the status of their assets and take timely actions to minimize risks.
They have already released the app, it’s available for download on Android or iPhone, they announced it on their Instagram axiome_en (link)
How to Start Delegating?
Let’s go through it step by step. First, you need to download the app. Here are the links: on Google Play \Link) and on the AppStore \Link).
Step 1: In the Axiome Wallet mobile app, go to the “Staking” tab and click on the “Delegate” button.
Step 2: In the pop-up window, select a validator and enter the amount. The “Available” indicator displays the balance of your main wallet, where you transferred the purchased tokens.
Step 3: Click “Confirm“. Your AXM tokens will be transferred from your Main Wallet to the Delegated Wallet.
A 15% partnership commission is charged for each delegation for the superior mentors in the partnership program. It motivates the community to become more involved in the project’s development by rewarding generous
partnership rewards. More details about the partnership program will be provided in another article.
During delegation, remember to leave some AXM to cover network fees for future transactions. Otherwise, you won’t be able to claim your delegation rewards.
My review of the Axiome project
The Axiome project impresses with its innovations in the field of DeFi – decentralized finance and blockchain technologies. Its distinguishing feature is the transparency and openness of the team. Developers regularly publish reports and updates, which helps to maintain trust within the community
Here’s an example: in a recent post, they talk about the NEXDEX exchange, which they plan to release soon.
One of the main advantages of Axiome is the ability to earn rewards not only in AXM tokens but also in tokens of new projects within the ecosystem. This makes AXM staking particularly attractive, as holders gain access to more opportunities for earning online. The floating delegation reward rate is another cool feature, allowing the community to adjust rates based on market conditions.
Recently, the platform underwent a security audit by independent experts from SolidProof. This is a big plus, as security is crucial in cryptocurrencies. \Link)
Of course, like in any cryptocurrency project, there are risks involved. The market is volatile, so it’s always important to carefully research the project
and the coin before investing. However, overall, Axiome looks promising and worth paying attention to.
The project offers transparency, open communication, and an active community — all of which can instill confidence that Axiome has the potential for success and development in the future.
Project Links:
Detailed documentation in English: axiomeinfo.org
Instagram account: axiome_en
Telegram channel: t.me/axiomeen
Website: axiome.pro
Block explorer: axiomechain.org
YouTube channel: @axiome_en
Twitter: x.com/axiome_pro
Support: @axiomesupport
All links: linktr.ee/axiome_pro
