As an active and passionate member of the WAX community through my #SocialMining activities on @DAO Labs , I’m genuinely excited by this transformative shift in $WAXP

Introducing its blockchain’s economic model. What we’re seeing is more than just a technical upgrade it’s a fundamental evolution that redefines how value is created and sustained on WAX.

What Is Emission Reduction and Token Burn?

Emission reduction means fewer new WAXP tokens are being created (or "minted") over time. Token burn, on the other hand, permanently removes tokens from circulation like taking them out of the economy for good. Combined, these mechanisms aim to decrease overall supply, creating a more deflationary environment.

Impact on Circulating Supply and Price Mechanics

With less inflation and more tokens being burned through usage (especially via PowerUp transactions), the circulating supply of WAXP begins to shrink or at least grow much slower. This supply pressure, paired with consistent or rising demand, can lead to upward price momentum over time. It’s a classic supply and demand play fewer tokens available equals to more scarcity and potential value growth.

We’re already seeing this shift as WAX transitions from a 60/40 PowerUp-to-staking ratio toward a 90/10 target. As usage increases, more fees flow into the PowerUp system, and more tokens are burned rather than minted. That’s a big deal.

Strategic Reasons Behind This Shift

Most blockchains still rely heavily on inflation endlessly printing new tokens to fund operations. WAX is boldly rejecting that. By phasing out inflationary Guild rewards by September 2025 and relying more on usage-based revenue, WAX is becoming self-sustaining, like a real business.

This creates a healthier, fairer economy where those who use the network contribute to its longevity, and those who stake still earn rewards through voting. It’s inclusive, efficient, and scalable.

Expected Market Response

This kind of deflationary model is rare in the blockchain space, and it's likely to catch investor and developer attention. Projects and users seeking sustainable platforms will recognize WAX as a leader in responsible tokenomics. Over time, this could attract new adoption, partnerships, and market confidence.

WAX vs. ETH, BNB, and Solana

• Ethereum burns $ETH through gas fees (EIP-1559) but still has high costs and slower speeds.

• #bnb uses quarterly burns based on revenue very business-like, but centralized.

• #solana is fast but still inflationary with high validator rewards.

• WAX, now embracing real usage and automatic deflation, combines performance with economic sustainability in a way that few others can match.

Pre- and Post-Burn Dynamics

Before this shift, WAX operated with high inflation and low burn, relying heavily on staking. Now, post-burn model:

• More usage equals to more token burn

• Less reliance on minting equals lower inflation

• Long-term deflation possibly equals potential price appreciation

What do you think about Deflationary measures?