WAX: Detailed review on the project

Introduction

WAX is a decentralized platform that enables anyone to operate a fully functioning virtual marketplace with zero investment into security, infrastructure or settlement. Developed by the founders of OPSkins, the world’s leading marketplace for online video game assets, WAX is designed to serve the 400+ million online players who already collect, buy and sell. With the inclusion of WAX’s simple exchange widget, gamers will have access to a worldwide market, with blockchain trust and transaction verification.

Technology

The WAX Platform uses a type of Delegated Proof of Stake (DPOS) consensus algorithm, originally created by BitShares. This system allows for high transaction throughput, with the confidence of network support and trust. Unlike a traditional Proof of Work system, confirming nodes are elected by users who pledge votes to proposed delegates. Holders of WAX Tokens will be able to submit proposals to the network for the election of a confirming node, called a “Guild” on the WAX Platform. Users will vote on the submitted proposals of potential Guilds, as well as existing Guilds. The WAX Platform will initially support 64 elected Guilds; Guilds are then ranked by the number of votes they receive, weighted by the game they support in their proposal. Relying on WAX’s user base to elect Guilds (the elected delegates) will create sufficient decentralization to ensure a secure and trusted exchange.

Users and Guilds (but not Transfer Agents) may pledge their WAX Tokens to proposals but cannot pledge to themselves. Users are allowed to pledge only up to a total of eight proposals — and only one proposal per game or game/server — preventing large holders from unduly influencing a single game. As the user base supports many different titles, this will ensure votes are cast across numerous franchises and Guilds. If users begin to lose confidence in a Guild, they may switch their delegated stake at any point to another Guild or proposal. While this will not force an immediate change in Guild status, it will alert users who support the Guild. Users are encouraged to keep their WAX Tokens pledged through the earning of pledge rewards. A percent of the Guild’s earned fees will be redistributed to pledged Users, in proportion to their delegated stake amount. This system allows users to support the network through DPOS, while also not limiting the ability to change votes in favor of better Guilds.

Source

WAX Accounts

On the WAX Platform there are four types of accounts, three controlled by external agents and one autonomously; Users, Guilds, Transfer Agents, and Contracts. Each of these accounts serves a distinct role in the WAX Platform.

User accounts control a single private key, and corresponding address, with which they create and sign transactions. Users may control WAX Tokens as well as digital goods, and cannot have their control of these goods revoked by any other user. Most User accounts will be proxied by an exchange and listing website (such as OPSkins.com), though it will be possible for a User to directly interact with the WAX Platform.

Guilds are the confirming nodes of the WAX Platform and are elected by DPOS from users. Each Guild is created with a private signing key and corresponding address, as well as a single public encryption key and private decryption key that is used in a multiparty encryption schema for listing assets. Guilds are responsible for forming blocks of transactions and must sign these blocks and transact them to other Guilds on the WAX Platform. For this service, they receive the fees earned within the block, and periodically transfer a percentage of these fees to their pledged stakeholders.

Transfer Agents are responsible for the in-game transfer of digital assets between Users. These accounts control two Hierarchically Derived (HD) Private Keys. The first is used to generate a master address and child addresses for the acceptance and transfer of virtual goods and WAX Tokens. The second is used to create unique public encryption keys to accept messages from Users.Through this channel, Users can securely communicate their ingame contact info to transfer or receive virtual goods. Each time a Transfer Agent accepts a Settlement Execution Contract, the WAX Platform will force the iteration of the HD Key.

Contracts are code stored in the WAX Platform state, that can be executed by external agent accounts. Contracts created on the WAX Platform are executed immediately and return the Contract address and functions. The WAX Platform supports a limited number of Contracts, such as Proposal, Listing, Settlement Execution, Request, and Virtual Good.

Guilds

Guilds are the confirming nodes of the WAX Platform. Guilds will confirm transactions in a round-robin order. This ensures that all transactions are confirmed by at least one impartial party and maintain consensus of the network, while also retaining the speed and efficiency of a DPOS consensus.

While the WAX Platform will have 64 Guild positions upon release, this will be increased as new games and servers are released. This is easily signaled by the community presenting proposals for new games and/or servers not currently represented by a Guild. If these proposals receive enough votes during a set time period, the list of Guild positions will be expanded by eight. This balance prevents the number of Guilds from outpacing the WAX Platform’s user community, while also prioritizing user demand for new games and servers.

Beyond consensus, Guilds have additional responsibilities to promote network health. For a Guild to be elected, they must first submit a proposal to the network that states the game they will service, the percentage of fees they will share to pledged users, and how they will monitor Transfer Agents. When a Guild proposal is approved, their public encryption key will be added to the multi-party encryption schema used for listing on the game or game/server.

Guilds are responsible for assigning Transfer Agents to a purchased listing and transferring the contact details for users to the transfer agent. When a purchase is made, Guilds that service the items’ game or game/server will be assigned the transaction. They will assign a Transfer Agent to the purchase, and the first one confirmed by the network will become the accepted record. At this point, the Transfer Agent will have their HD keys iterated, and the Guild will encrypt a message of the contact details for buyer and seller to the Transfer Agent. To ensure this process runs smoothly, Guilds will devise systems to select Transfer Agents based on proximity to buyer/seller, time since last transfer assignment and activity level, overall number of current settlement execution contracts assigned, and — of course — Transfer Agent’s reputation score.

The Guild’s overall trust score is based on a combination of its delegated votes from users, as well as the average rating for active Transfer Agents for its game — a rise in dishonest Transfer Agents could lead to users switching their vote and the eventual disbanding of the Guild. As such, Guilds can ban Transfer Agents who have received a number of disputes.

Guilds are incentivized to high-quality service by receiving a percentage of the fees on lists, transfers, and Contracts. These fees are earned on the virtual goods they confirm during their confirmation turn, with additional bonuses paid out on virtual goods from their proposal. This encourages competition in the most popular and expensive marketplaces while providing a fair fee structure for games with a smaller user base.

Transfer Agents

Transfer Agents are users entrusted to accept and transfer virtual goods between users. A Transfer Agent is approved only for one game or game/server, and cannot change its association. It must also put up a bond of WAX Tokens, of which it cannot exceed 25% of total value of currently assigned Settlement Execution Contracts. For settlement execution services, its will be rewarded a percentage of the fee with WAX Tokens.

Transfer Agents may signal to the Guild that they are actively looking for additional settlement execution contracts and are currently on-line. Conversely, if a Transfer Agent no longer wants to participate as a Transfer Agent, it must first complete its assigned settlement execution contracts, and can then signal its retirement to the Guild. It will then receive its full bond of WAX Tokens back.

Transfer Agents perform a critical function in the WAX Platform. Transfer Agents will be responsible for enacting in-game trades of virtual goods purchased and will be expected to:
1. Communicate with seller and buyer to arrange pick-up and delivery of item
2. Take control of the virtual asset from the seller
3. Verify the authenticity of the virtual asset
4. Digitally sign the Settlement Execution Contract that they have received the virtual asset
5. Deliver the virtual asset to the buyer
6. Digitally sign the Settlement Execution Contract that they have delivered the virtual asset

In addition, Transfer Agents may be called to arbiter disputes raised by users against other Transfer Agents. These services are rated by buyers and sellers, and they must maintain a high level of quality service or risk being removed.

Transfer Agents’ accounts have two public keys; the first is a HD signing address and is similar to other users. The second is a HD public encryption key, allowing users to send secure messages with their in-game username, location, trade-URL (i.e.: for steam trades), etc.

When a Transfer Agent is selected for a Settlement Execution Contract, the Buyer and Seller will be alerted. They can send encrypted messages to the Transfer Agent to communicate
meeting logistics. The Transfer Agent can communicate back (though unencrypted) with clarifying questions or additional details. This allows the Transfer Agent to meet users in-game with minimal risk, while also protecting users from Transfer Agents working with either a buyer or seller to deceive the other.

Source

Team

WAX was designed by Team OPSkins. Operators of the #1 digital marketplace in the world. They sell two million digital items per week. OPSkins customers are already primed for using cryptocurrency — OPSkins has been accepting bitcoin for more than two years, and after they built their own bitcoin payment processing platform, OPSkins became one of the top five largest e-commerce sites globally for accepting bitcoin.

Team members

William Quigley — CEO, Co-Founder.

William Quigley is CEO of OPSkins, the world’s largest marketplace for video game virtual items. He and his business partner Jonathan Yantis​ — OPSkins​ COO — were early backers and the largest investors in Mastercoin, the technical forerunner to Ethereum and the world’s first ICO. The Mastercoin team invented the concept of a blockchain based smart contract. He’s a renowned venture capitalist and the first institutional investor in PayPal. Quigley also Co-Founded the Tether coin, which is used around the globe. He is also Managing Director of Cashel Enterprises​, a cryptocurrency focused investment vehicle. He attended The University of Southern California where he received his Bachelor’s Degree in accounting — he then went on to Harvard Business School where he earned his MBA in finance.

Profiles: Twitter LinkedIn

Jonathan Yantis — COO, Co-Founder.

Jonathan Yantis is the COO of OPSkins​. Jonathan created virtual item trading in 1997, with its inception taking place in the realms of Ultima Online​, EverQuest​, and World of Warcraft​. Later, as founder of the world’s first and fastest growing digital item marketplace, Jonathan oversaw a merger with then-industry giant Internet Gaming Entertainment​. After managing the growth of joint operations to $1 billion in revenue, he successfully exited in 2009. An early Bitcoin​ miner and blockchain​ investor, Jonathan was a board member of the first ICO ever, Mastercoin​. Shortly afterward, Jonathan backed the Ethereum​ ICO.

Malcolm CasSelle — President.

Malcolm CasSelle is CIO of OPSKins​. He holds a bachelor’s degree from MIT and a master’s degree from Stanford University, both in Computer Science. Prior to WAX, CasSelle was an international entrepreneur and CTO and President of New Ventures at tronc, Inc. Prior to tronc, Inc., he was Senior Vice President and General Manager, Digital Media of SeaChange International and led startups in the digital industry. He has also been an active early stage investor in companies including Facebook, Zynga, and most recently Bitcoin-related companies. CasSelle entered cryptocurrency ecosystem in late 2012. He was a partner in numerous early bitcoin mining projects and invested in companies such as BTC China (BTCC), Blockchain Capital Partners (BCAP), GoCoin, and numerous others. He was also an early investor in the first ICO’s for smart contract applications, MasterCoin and OMNI.

John Brechisci, Jr. — Lead Designer, Co-Founder.

John Brechisci, Jr. is a lifelong video gamer, and self-taught programmer. He is the founder and CTO of OPSkins. He is famous for creating the marketplace utilized by the skins trading industry, OPSkins Marketplace.

And others.

Advisors

  • Aaron Volsine — Co-founder and President at Bread.
  • Michael Maloney — Managing Director at Galaxy Digital Labs. WAX System Architect & former Blockchain CTO, EY.
  • Michael Terpin — Founder and CEO, Transform Group.
  • Scott Walker — Managing General Partner at DNA Holdings and Wavemaker Genesis.
  • Brian Fargo — Founder of Interplay and InXile Entertainment.
  • Anthony Diiorio — CEO & Founder at Jaxx & Decentral, Founder at Ethereum.

Partnerships

On 14th of August, Hash Rush and Worldwide Asset eXchange (WAX)™ announced that the company’s in-game items will be tradeable on WAX ExpressTrade and available for purchase on OPSkins™ using WAX Tokens, Bitcoin, ETH, US dollars, Euros and dozens of other currencies. These items will include in-game skins, special boosts, tokenized planets, and more. Hash Rush items are built for cross-game functionality, meaning they can transition to be used in other blockchain games as well. More information can be found here.

On the 8th of August announced a partnership with Terra Virtua, the world’s first ever fully-immersive augmented reality/virtual reality blockchain entertainment platform. Owners of digital items that are traded on the WAX Blockchain will be able to interact with them in virtual reality through Terra Virtua’s platform. More information can be found here.

On the 19th of April, CryptoAlpaca and Worldwide Asset eXchange™(WAX) announced that the company’s Crypto Collectibles™ will be available on OPSkins, the world’s leading marketplace for online video game assets, and will be tradable with WAX Tokens, Bitcoin, ETH, US dollars, Euros and dozens of other currencies. More information can be found here.

On the 12th of April, Crypto Collectible ‘CryptoSaga’ announced partnership with WAX and OPSkins Marketplace. Blockchain-based game CryptoSaga will be available on OPSkins, the world’s leading marketplace for online video game assets, and will be tradable with WAX Tokens! More information can be found here.

On the 6th of April, announced the ability to use WAX Tokens as collateral for instant access to cash through crypto-backed loans from Nexo! WAX Token holders will be able to keep their cryptocurrency assets, including gaming skins and crypto collectibles, while accessing cash loans on the Nexo platform. More information can be found here.

on the 22nd of May, Crypto and Dragons and Worldwide Asset eXchange™(WAX) announced that the company’s Crypto Collectibles™ will be available on OPSkins™, the world’s leading marketplace for online video game assets, and will be tradable with WAX Tokens, Bitcoin, ETH, US dollars, Euros and dozens of other currencies. More information can be found here.

On the 3rd of May, Trust Wallet, OPSkins Marketplace and Worldwide Asset eXchange™(WAX) announced a partnership that will allow users to access OPSkins’ items directly from Trust Wallet’s browser and purchase them using WAX Tokens or other cryptocurrencies. More information can be found here.

On the 8th of February, announced an integrated partnership with Coinomi. WAX token holders can now secure and exchange their tokens from the safety of Coinomi’s wallet. WAX token holders can list, send, receive, and trade their tokens from this wallet. WAX holders will get priority support from the Coinomi support staff, are listed as a verified token in the wallet, and can choose to see the value in BTC, ETH, USD or dozens of other fiat currencies. More information can be found here.

On the 19th of January, Worldwide Asset eXchange™ (WAX) announced a partnership with Creator.ai, the world’s first blockchain protocol for content creation, bringing the benefit of the 400+ million within WAX’s network of online gamers, developers and publishers closer to content creators and brands themselves. More information can be found here.

On the 14th of January, CryptoSpaceX and Worldwide Asset eXchange™(WAX) announced that the company’s Crypto Collectibles™ will be available on OPSkins™, the world’s leading marketplace for online video game assets, and will be tradable with WAX Tokens, Bitcoin, ETH, US dollars, Euros and dozens of other currencies. More information can be found here.

On the 18th of December announced a WAX and OPSkins’ partnership with KyberNetwork. WAX, a decentralized marketplace, will allow gamers and non-gamers alike more liberty in their trading of virtual assets. KyberNetwork’s primary focus is fostering crypto-asset liquidity, and simultaneously promoting tokens as tradeable assets to the general public. More information can be found here.

Use case

Before WAX, gamers had to visit a centralized marketplace or engage in makeshift one-on-one transactions to buy skins and other virtual goods. With WAX, though, getting new skins is as easy as clicking on a listing widget that is easy for any site to implement and that allows painless onboarding to the WAX Platform.

The widget, implemented as a simple set of tags that any site can deploy, is configured to align with a specific Guild. Each game can have one or many Guilds, but no game can be represented on the WAX Platform if it doesn’t have at least one Guild. Most of what a Guild does — running a full WAX node and carrying out certain responsibilities to aid in the functioning of the WAX Platform — is transparent to both the listing site (where the widget appears) and the potential buyer.

The buyer has to know only that he is interested in virtual goods from a specific game and the listing site simply configures the widget to offer items from that specific game. The widget queries the WAX Platform to retrieve items from the global virtual goods database that is maintained by the network of nodes in the platform. Using available information, the widget then chooses which item to display and the potential buyer can examine the currently displayed item or page through and examine additional items all priced in WAX Tokens.

Once the potential buyer decides to purchase, he simply selects “buy now” in the widget and is presented with an authentication window. If this is the first time he is interacting with the WAX Platform, he’ll be taken through an onboarding process that creates an identity, allocates a WAX Wallet, and allows him to fund the immediate purchase, all without forcing him to understand WAX, the WAX Platform, or WAX Tokens. From the buyer’s perspective, all that is required is to select an item, provide payment, and, a short while later, the item shows up in his personal inventory without him ever leaving the site he was visiting.

He is delighted with the experience. Buying skins before meant he had to go to a centralized marketplace service like OPSkins. Going from streaming site to the various fansites he regularly visits, he sees this same widget allowing anyone to search, browse and buy virtual goods.

Source

Social metrics

Github metrics
Social media activity

Markets and volumes

Information from Coinlib.io
Information from Coinmarketcap.com
Information from Etherscan.io

TA

WAX market price right now is $0,082295 USD (Coinmarketcap GMT+0 16.27) and that is really much lower than ico and even pre-ico (which were 3000 WAX for 1 ETC and 1500 WAX for 1 ETH with ETH price ranging from 280 to 490 USD) so it is either the bottom or this project is dead.

Infirmation from Coinmarketcap.com

Competitors

SkinCoin is a cryptocurrency that is designed specifically for the online gaming community. You can use SkinCoin tokens (SKIN) to purchase collectible digital items (like CS:GO and Dota 2 skins) or to bet on eSports. SkinCoin will come with its own cryptocurrency ecosystem based around wallets, exchanges, trading platforms, a marketplace, third party integrations, and SkinCoin-branded product offerings.

Market Cap $0.8 M
Raised $3,292,183 OF $10,000,000 (33%)

Enjin Coin, or ENJ, is a cryptocurrency targeted towards the gaming community. The currency was created by a company called Enjin. The new cryptocurrency will give communities, content creators, game servers, and game publishers an easy solution for implementing virtual goods and real value into a platform. Developers can implement real value into their gameplay and communities, for example. They can launch virtual goods tied to the Enjin Coin currency. Gamers can store all of their virtual goods inside the Enjin Coin wallet.

Market Cap $28 M

Raised $22,959,609 OF $25,000,000 (92%)

Gameflip is a project for creating a marketplace for virtual gaming items using blockchain technologies and Ethereum smart contract architecture, in particular. The project is a product of the Gameflip.com team, a large functioning platform for trading in in-game items, distribution of games and other virtual goods.

Market Cap $ 1.74 M

Raised $16,100,128 OF $12,000,000 (134%)

Currently, the gaming universes are not connected to each other in any way. As a result, it is very difficult for them to trade and earn money from their skills. DMarket has come to bridge this gap. This company is building a platform that is based on smart contracts and blockchain technology that is secure, user friendly, and reliable. DMarket has enabled one click sale, evaluation, and exchange of almost every virtual item between gamers regardless of the platform that they use.

Market Cap $9 M USD

Raised $19,026,768 OF $53,300,000 (36%)

Sources: Icodrops.com, Coinmarketcap.com, Coinlib.io, Icobench.com, bitcoinexchangeguide.com

Roadmap

Token Mechanics

Virtual goods’ sales prices are listed in WAX Token; when a user wants to purchase the virtual good they pay with WAX Token. If the item is listed in a different currency (through a site linking to the WAX Platform), the WAX Token must be converted by the listing agent at the current exchange rate at time of purchase. The number of votes a user can distribute to one or more Guilds is equivalent to the number of WAX Tokens such user holds. When WAX Tokens are transferred, the vote allocations are diminished by the same amount, so it is important to hold a reserve of WAX Tokens to ensure a user’s delegated votes remain sufficiently high. A small amount of WAX Token is also used during transactions and messages, as a fee for using the network. This fee, similar to ETH Gas and Bitcoin Fees, incentivizes Guilds to include transactions into blocks. WAX Token is divisible to 18 decimal places (10–18).

Source

Token Metrics

The total supply of WAX Tokens that will ever be created is 1,850,000,000. All WAX Tokens will be generated in a seed block and distributed according to the chart below. The information provided on token creation, process, allocation and use of sale proceeds is the current plan, but is subject to change in WAX’s discretion.

Token Sale

64,750,000 WAX Tokens were sold in the WAX Token sale. When WAX Tokens are issued, all contributors will receive 10x the number of tokens they purchased. The reason we’re issuing 10x the tokens is because it will be more convenient for users of the token. It will make microtransactions more easily calculable, and since WAX was designed to facilitate the millions of daily microtransactions for digital items, this is an important feature to include for WAX users.

Market Development

30% of WAX Tokens were, or will be, issued to encourage new developers to take part in the growing marketplace. These tokens will be distributed to new developers and publishers to incentivize them to release virtual goods that can be traded on the WAX Platform. This provides a new indirect distribution channel for game developers while allowing market demand from the gaming community to shape games we love.

Contributors and Advisors

15% of WAX Tokens are, or will be, held by the early contributors and advisors. This group has contributed 16,800 ETH to acquire 5,040,000 WAX Tokens. Some contributors and advisors have received, or will also receive, free bonus tokens for the advisory work they will be doing for WAX. These tokens cannot be immediately transferred due to time-based restrictions on their use.

WAX Team and Founders

20% of WAX Tokens are being, or will be, retained by WAX and reserved for development, team, and founders who will continue to enhance the WAX Platform with valuable updates and their use of these tokens will also be time released

Use of proceeds

Source

Summary

Team: strong team from target market’s perspective

Idea: hard to execute since there will be a lot of legal problems

Development stage: alpha net

Whitepaper: good one, idea is described in detail, but technical part is weak

Roadmap: quite clear, but not precise

This project is quite interesting, the team behind it (I mean opskins) is already well known in community, so the already have a market waiting for them (in case most of their users will appreciate the idea of using a cryptocurrency, but at the moment we receive only negative responses due to poor UX while using tokens). And they even make a new step with adding all kind of ERC-721 tokens to their platform, that increases their market coverage even more. They have a new approach to nodes which is good as well since they make their “guild” contribute to the whole network for real instead of simply buying a big amount of tokens with idea of passive income.

But I don’t understand 2 things:

  1. How presumptuous could they be with the idea they should make barely legal market of skins their target market? Most of game’s T&C don’t allow skins/drops/collectibles and such to be traded for real money or/and on third-party markets. Opskins already suffered quite a bit with Valves action of banning their bots, this can be expected to be done to any other participant of WAX platform. And same actions can be made buy other companies which IP’s are being traded in breach of T&C.
  2. Cryptocollectables are second, but this is simply me. Maybe I am too old (or too young) to understand why people spend so much money on them. I can’t make the math — why this kitty is worth $25000 and this one is $5. So for me this newly added market doesn’t mean a thing. I can’t calculate it, I can’t even hope to comprehend the price formation, I can’t evaluate how much value will add to WAX platform.

P.S. Cryptocollectible skins are the most bizarre good for me. What is the point of buying a skin if you can’t use it in game?

To sum up this project is quite controversial: it allows you to create a marketplace with ease, but most likely the goods you plan to sell there are not allowed to be sold or traded there. Despite the fact that they “enable anyone to operate a fully functioning virtual marketplace with zero investment into security, infrastructure or settlement” you pretty much can lose everything and have your store closed in a span of few seconds if the IP owners decide to put you down. Pretty shaky foundation for the whole problem IMO.


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