You would definitely agree with me that most cryptocurrency project with sustainable tokenomics and infrastructure are always reducing their token supply in one way or the other either by burning, halving, or using other means just to ensure the token supply is reduced. You know how lots of those big digital money networks seem to be all about growing at any cost? Well, WAX, which is a big player in that world, is doing something different.

WAX team just made a recent announcement on it's official medium blog and X account which has to do with a new way their digital tokens (WAXP) will work, and it's all about making a $WAXP more scarce by reducing it's supply. This changes would definitely impact the entire WAX Ecosystem in a more positive direction and help them stand out in the Web3 space.

According to the recent post on the official WAX Medium page, the plan is to create a maximum of 156 million WAXP tokens each year and half of those new WAXP tokens will be removed permanently by burning. This is a great development from WAX different from how other popular blockchains operate, where more and more tokens are constantly being created. You can think of this similar to that of Ethereum's big upgrade or how Binance handles its tokens, but with an upgraded twist in such a way that WAX's burning happens automatically without anyone in control or deciding when to do it, the process just happens as new tokens are produced.

Why This Matters for Your Wallet: Less Is More

For a long time, having too many tokens constantly flooding the market has been a quiet problem for many digital money systems. It's like a hidden tax, slowly chipping away at the value and sometimes pushing people to sell off their holdings quickly. WAX is directly solving this by getting rid of 78 million tokens every single year. By building this "less is more" idea right into the system, WAX is creating a natural scarcity. Over time, this should mean fewer tokens floating around, which usually pushes their value up.

This new development will also enable users to stake their WAXP tokens to help the WAX network run. With fewer new tokens coming out and half of them getting burnt, staking becomes a better deal without the network having to endlessly create more tokens which helps to onboard more users into WAX.

The Smart Timing Behind the Move

As the cryptocurrency world develops, the folks building on them, the investors, and the communities using them are all looking for projects that are trusted and built to last. WAX’s move is a direct answer to that call.

By reducing the sell pressure and making WAXP more useful, WAX is building a more inviting place for developers who want to create new Web3 projects, for those working on digital collectibles (NFTs), and for the folks building the foundational pieces of this digital world. These set of people want to be on a system that feels financially safe. Also, eradicating the need for someone to manually decide when to burn tokens, like BNB, ETH, and the likes. This makes WAX feel more truly decentralized and independent.

WAX Stepping Up Against the Big Names: Ethereum, BNB, and Solana

It's undoubtedly that WAX has always been known for its focus on digital collectibles (NFTS) and games, but now WAX is really entering the bigger conversation about core cryptocurrency networks with a clear advantage. Ethereum’s shift to being more deflationary got a lot of praise, but it slow network and high gas fee is definitely a turn off for some users. BNB’s token burns are effective, but they’re planned by a central group while Solana is super fast and popular, but it still makes a lot of new tokens.

WAX is now blending the best of both worlds: it's got that automatic token reduction like Ethereum aims for, combined with the ease and speed you expect from modern Blockchain Networks. This makes WAX a one that's not just affordable and easy for developers but also designed to hold its value long term.

CONCLUSION

As all these big digital networks fight for attention, WAX has just walked into the ring with a powerful new tool: an engine that rewards those who stick around, the developers, and the builders – all while slowly but surely tipping the scales of supply and demand in its favor.

In the end, WAX's decision to burn tokens to lower the supply isn't just a small change; it's a whole new way of thinking about how long-term coin systems should work. WAX is setting its own rules by making its environment more stable and limited at a time when too many new coins could make people lose faith in their value.

With all these major digital networks fighting for attention, WAX has just entered the ring with a strong new tool: an engine that rewards developers, builders, and those who stick around. This engine will slowly but definitely tip the scales of supply and demand in WAX's favour.

Reference Links

https://wax-io.medium.com/wax-goes-deflationary-2db2b5c02952