Introducing the Genesis Block Member Program: Join and receive daily token rewards for 3 years
This is our second communication regarding the WAX Blockchain and Protocol Token release, following last week’s announcement about the WAX Token Swap and mainnet release date.
Introducing the Genesis Block Member Program
We have some exciting news for WAX Token holders. As part of the WAX Token Swap, we have created the Genesis Block Member program (GBM).
Broad community participation is essential for a well-functioning delegated proof of stake blockchain. The GBM is designed to encourage civic engagement and reward our long-term-oriented WAX community members who take part in the WAX blockchain’s healthy development.
Why be a Genesis Block Member?
GBM participants will receive daily token rewards for 3 years. For eligibility, you must participate in the WAX Token Swap. All WAX Protocol Tokens generated during the token swap will be designated Genesis WAX Protocol Tokens. The WAX Token Swap is the only time that WAX Protocol Tokens will be designated Genesis WAX Protocol Tokens.
Genesis WAX Protocol Token Details:
- As we announced last week, holders of the ERC-20 WAX Tokens will be able to swap their tokens for the new WAX Protocol Tokens between June 30 and August 30, 2019. The ERC-20 WAX Tokens will be burned and permanently decommissioned at this time.
- There will only be one type of WAX Protocol Token. However, the WAX Protocol Tokens created during the Token Swap are designated Genesis WAX Protocol Tokens.
- Genesis WAX Protocol Tokens and WAX Protocol Tokens are identical except that Genesis WAX Protocol Tokens earn GBM rewards. Both are called WAX, both can immediately earn staking rewards and both can immediately be used to vote. GBM rewards, staking rewards and voting are immediately available after you receive your Genesis WAX Protocol Tokens.
- As part of the WAX Token Swap — and only during the WAX Token Swap — your ERC-20 WAX Tokens will be converted 1:1 into Genesis WAX Protocol Tokens. For each ERC-20 WAX Token you burn, you will receive 1 Genesis WAX Protocol Token.
- Each staked Genesis WAX Protocol Token will produce one WAX Protocol Token as a GBM reward over the course of 3 years (i.e. one staked Genesis WAX Protocol Token will produce 1/1096 of a WAX Protocol Token each day for 1,096 days).
- Genesis WAX Protocol Tokens will continue to produce WAX Protocol Token GBM rewards every day as long as they remain staked.
- By leaving your Genesis WAX Protocol Tokens uninterruptedly staked for 3 years, you will double your WAX Protocol Tokens.
- If a Genesis WAX Protocol Token is unstaked, it will permanently stop producing WAX Protocol Token GBM rewards. This can not be reversed.
- You may unstake all or a portion of your Genesis WAX Protocol Tokens at any time. The tokens that have been unstaked will become WAX Protocol Tokens and permanently stop producing daily GBM rewards.
- Genesis WAX Protocol Tokens are automatically staked for you once they are converted from ERC-20 WAX Tokens, and are eligible for staking rewards and voting just like WAX Protocol Tokens.
- We will provide a dashboard, represented below, that tracks your GBM rewards
If you have 1,000 ERC-20 WAX Tokens today:
- You will send these to a burn address between June 30 — August 30th per the simple step-by-step instructions that we will provide.
- You will receive 1,000 Genesis WAX Protocol Tokens in your WAX Blockchain account within 30 minutes. These Genesis WAX Protocol Tokens will be automatically staked for you. You can also vote with these tokens.
- The following day, you will receive 0.91240875 additional WAX in the form of WAX Protocol Tokens (1,000 Tokens / 1096 payments). You will receive an additional 0.91240875 WAX Protocol Tokens daily for the next 3 years.
- You can withdraw the 0.91240875 daily accrued WAX Protocol Tokens and it does not affect your Genesis WAX Protocol Tokens in any way.
- If you leave all your 1,000 Genesis WAX Protocol Tokens continuously staked for 3 years, you will then own 2,000 WAX Protocol Tokens.
- If you unstake the 1,000 Genesis WAX Protocol Tokens at any time, you will no longer receive daily rewards of 0.91240875 WAX Protocol Tokens.
- You can unstake a portion of your Genesis WAX Protocol Tokens at any time and only those unstaked tokens will permanently stop producing daily GBM rewards. For example, you may decide to unstake 250 of your 1,000 Genesis WAX Protocol Tokens on day one of the Token Swap and transfer or sell them. The remaining 750 Genesis WAX Protocol Tokens will be unaffected by this and will continue to produce daily WAX Protocol Token GBM rewards.
Does burning the ERC-20 WAX Token affect plans for cross-chain interoperability?
No. WAX will still support cross-chain interoperability.
What is the supply of WAX Protocol Tokens?
At launch, the circulating supply of WAX Protocol Tokens will not exceed 943 million tokens. This is equal to the current supply of ERC-20 WAX Tokens in circulation today. The initial circulating supply of WAX Protocol Tokens is based on the circulating number of ERC-20 WAX Tokens burned during the Token Swap. The WAX Protocol Token circulating supply will increase as more ERC-20 WAX Tokens are swapped and token rewards are distributed.
The total supply of WAX Protocol Tokens will be 3.7 billion tokens when the WAX Mainnet launches. This includes:
- 1.850 billion WAX Protocol Tokens that will be created during the Token Swap. This is equal to the existing 1.850 billion ERC-20 WAX Token supply, of which approximately 943 million tokens are currently in circulation.
- 1.850 billion WAX Protocol Tokens designated as reward tokens for the Genesis Block Member program. None of these 1.850 billion reward tokens will be in circulation immediately, nor is it likely that all of them ever will be, as these tokens are subject to the three year uninterrupted staking requirement of the Genesis Block Member program. Reward tokens associated with prematurely unstaked Genesis WAX Protocol Tokens will be burned. For example, if all WAX holders unstaked all of their Genesis WAX Protocol Tokens on day one of the Token Swap, then all 1.850 billion tokens designated for the Genesis Block Member program would be burned.
The total token supply will fluctuate over time as unearned Genesis Block Member reward tokens are burned and new tokens are created from staking and guild rewards. Details on these will follow.
To summarize, WAX Protocol Tokens that are created as part of the WAX Token Swap are designated Genesis WAX Protocol Tokens. Genesis WAX Protocol Tokens have one special property — the ability to produce a second WAX Protocol Token over 3 years. To retain this special property, Genesis WAX Protocol Tokens must remain uninterruptedly staked for 3 years. At the end of the three year period, Genesis WAX Protocol Token holders will have double the amount of WAX Protocol Tokens that they possessed immediately after the WAX Token Swap.
Exciting announcements about WAX Protocol Token staking rewards, guilds, and voting!
Let us know what you think by joining the WAX community:
Originally published at https://wax.io.