Dear #BinanceSquareFamily readers, as a social miner at @DAO Labs , I am here today to announce some good news about the #WAXP project in the new version #SocialMining . The market is trying to find its direction with the price movements of $BTC , $DOGE , $XRP , #BTCReclaims110K , #TrumpVsMusk events.
Today, many Layer-1 blockchains continue their paths with inflationary models to grow and fund their operations. WAX is taking a different path in terms of blockchain in this period. It continues to take steps on a roadmap that primarily focuses on sustainability, token scarcity for future periods, and real usage. With the latest protocol changes, WAX has reduced on-chain inflation to just 4.8%. In short, it is rapidly moving towards a deflationary model.
The change from Inflation to Consumption has begun. Traditionally, WAX was working with the PowerUp system. So how did the PowerUp system work? First of all, WAX was working with a system that allowed 90% of the chain resources to be staked and only 10% of the resources to be paid by users to temporarily access network resources. In other words, it was working with a model that could be accessed through the PowerUp system. Now they have turned the opposite of this model.
✅ The new target is 90% of users access resources through PowerUp.
✅ The remaining 10% trust staking
Today, the network currently works approximately 60/40 in favor of PowerUp and the transition continues.
When we look at the basic result of this change, we first encounter less token printing. In addition, burning more WAXP also pushes them to become stronger. Because PowerUp usage directs fees to a dynamic burning system. More usage now directly translates into decreasing supply.
WAX is marking September 2025 as the Deflationary Turning Point. By September 2025, WAX will reduce inflation by another 1%. This change, along with the PowerUp transition, will push the protocol into net deflation. This means more tokens will be burned than created. This is a truly significant turning point. WAX looks set to become one of the first Layer-1 chains to fund itself entirely through usage, not inflation, in the future.
These developments are important for token supply and value. WAX’s new model establishes a link between chain efficiency and token scarcity. With higher PowerUp usage, more fees will be burned. With the reduced need for mints, lower inflation will be achieved. With stronger price mechanics, they will have a healthier and longer-term token economy. In essence, WAX continues to build a network that scales according to actual demand, rather than minting tokens to support operations. We can call it a self-sustaining cycle.
When we look at the strategic issues behind the change, we see a WAX that is taking more solid steps for its future. Since inflation cannot last forever, WAX is taking early action and seems to have already started the process of preparing for the future. PowerUp improves network resource allocation while reducing entry barriers and increasing efficiency. Incentives are offered for those who support the network through voting. Staking still earns around 9% APR. Long-term contributors with trust will continue to earn money from the system.
WAX's current course of action seems to have been taken with radical decisions, of course. It is transitioning to a model that requires zero inflation while maintaining performance and accessibility.
As a result, WAX is updating its blockchain economic model. In addition, it is redefining what sustainability looks like in Web3. In other words, it is reducing inflation. It is increasing token burn and making usage compatible with cost. WAX is setting a new standard for how Layer-1 blockchains can operate more like businesses. The standards are taking their place as simple, efficient and scalable.
There is still a lot of work to do for WAX. With its blockchain rewarding real activity, it looks set to continue to excite many in the Web3 community.
