Jax.Network Blog
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Jax.Network Blog

The ecosystem of Jax.Network coins

by Maryna Trifonova, Head of Content at Jax.Network

The Jax.Network blockchain houses two native digital currencies, JAX and JXN. With the development of our DeFi products on Layer 2, more coins appeared on the horizon. Let’s have a brief overview of all coins and their role in our ecosystem.

Layer-1 coins

The structure of the Jax.Network blockchain was designed to accommodate two coins: an asset coin (JXN) and a stablecoin (JAX). The beacon chain is set to produce 20 JXN per block after 5 years, with no cap on the supply. These coins are rewarded to miners, who merge-mine our network with Bitcoin as an extra incentive to protect our network security and should increase in price with the mass adoption of JAX. It’s interesting to point out that JAX issuance only happens when miners forgo the Bitcoin and JXN block rewards. This is the only way to print more JAX coins, which hold only a transactional value directly pegged to Bitcoin hashrate.

Layer-2 coins

Decentralized finance offers multiple ways of managing your money, from lending and borrowing to liquidity providing and farming. Jax.Network aims at gaining a substantial share of the DeFi market and thus introduces more coins. As DeFi is run on Layer 2, there is a need to convert JAX and JXN into Wrapped JAX (WJAX) and Wrapped JXN (WJXN). These coins are backed by Layer-1 JAX and JXN at a 1:1 rate and retain all their properties.

You might also come across WJXN-2 and wonder what’s the difference between WJXN and WJXN-2. WJXN is non-divisible, meaning 1 WJXN can’t be split into smaller parts like 0.5 WJXN, etc. The reason for that is the fact that another coin plays the role of the smallest unit of WJXN. It’s called HST (Haber-Stornetta Token). 1 HST equals 10^-8 WJXN, so you can swap your HST for WJXN at any moment using a bridge. You can also receive HST as yield for providing liquidity on farm.jax.net. As for WJXN-2, users can swap their WJXN for WJXN-2 and vice versa using the bridge too. Additionally all daily yield payout on Jax.Money is denominated in WJXN-2.

Jax.Money coins

Jax.Money is a stablecoin payments system with 100% on-chain reserves backed by energy spent, or Proof-of-Work. This platform allows users to issue localized derivatives soft-pegged to an energy-underwritten stablecoin (WJAX). At the moment, users can get JAX Dollar (JAXUD) and JAX Rupee (JAXRE); however, the number of localized stablecoins will increase in the future in accordance with the growing demand.

Volatility reserves pool (VRP) tokens are mainly used as collateral to secure WJAX reserves against exchange rate volatility risks. Users can get VRP tokens by staking WJXN-2 on Jax.Money and receive high yield. VRP tokens also allow voting for a governor of Jax.Money.

Conclusion

As you can see, we have a vast ecosystem, which requires a lot of different coins to operate successfully. Certainly, we have long-term goals and plan to add more coins in the future in order to satisfy the world’s demand for energy-based stablecoins.

Don’t miss any announcement by subscribing to our social media accounts:

Official Website: https://jax.network

Twitter: https://twitter.com/CommunityJax

Facebook: https://www.facebook.com/network.jax/

Telegram Channel: https://t.me/jax_network

Official Group: https://t.me/jax_chat

LinkedIn: https://www.linkedin.com/company/jax-network/

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