Axion Network…Hidden Gem or Also Ran?

jaycesondon
6 min readMay 10, 2022

“We’ll not give up until we have achieved our goals, which are:

Life changing returns for our investors

Generous passive income

A suite of products that provide genuine utility

A project with aspirations to break into the top 100

Price appreciation on a scale few thought was possible”

I took the above quote from Axion’s Discord channel on April 30, 2022, and it sums up the development team’s ambitions for this project. You are probably thinking those are lofty goals, but at the same time asking what the hell is Axion? It is quite likely 90% of you reading this have never heard of Axion. Did I pluck this one from the deep end?

No, I did not pluck it from the deep end, so let me try to answer the question — what the hell is Axion? Axion is a staking, passive income protocol on the Polygon Network. Axion describes itself as the world’s best staking system featuring a high APR, daily BTC dividends, exclusive airdrops/presales and much more. Axion was modeled off HEX, one of the first and most successful passive income projects in the crypto space. In the unlikely event you have never heard of HEX you can check it out here. Axion was supposed to be an improved version of HEX but failed to live up to the hype and has struggled mightily since launching towards the end of 2020.

Perhaps the biggest reason for Axion’s underwhelming performance is the fact it had an exploit upon launching. One of its in-house developers inserted malicious code after the smart contract had been audited — but before launch — and minted coins which he then sold, crashing Axion’s price. The Axion team was able to raise new liquidity and relaunch the project. Though it had a few dead cat bounces after the exploit, sustained upward price momentum has not happened for this token.

It is a testament to the developers that Axion is still around, as not many projects survive an exploit at launch and live to tell the tale. The team has tried many different things to gain traction, but it has been an upward slog. One thing the Axion developers do not lack though is tenacity. It is not for a lack of trying that the project has not yet reached its true potential. But all indications are that they will stay the course to see the project through to success. That is the reason I am writing on this project. I truly admire the efforts and doggedness this team has shown, and it is the primary reason this project could still scale the crypto heights.

Axion Mechanics

Axion pays interest of at least 8% APR, with the potential to earn up to 47%. The longer an investor stakes Axion, the higher the APR. Holders can stake Axion for up to 5555 days (15.2 years). About half of total supply is staked for 5555 days, suggesting investors must have a strong belief in the project’s eventual success.

Axion stakers not only receive interest in Axion, they also receive Bitcoin dividends paid out automatically. A recent proposal put forward by the team could scrap bitcoin dividends if voted for implementation by the community. Dividends are being paid out now in Axion to offset the loss of Bitcoin dividends.

Axion can be purchased on Sushiswap or on Axion Network’s Accelerator. The Accelerator is Axion’s own tool which allows investors to buy Axion at a 5–20% discount, depending on how long the purchased Axion is staked. Axion purchased through the Accelerator must be staked for at least 120 days. Using the Accelerator takes away the need to buy on Sushiswap and then stake separately.

Investors who buy Axion via the Accelerator are automatically entered into a lottery system called the Collider, which gives them a one in 25 chance of winning an additional 10 times the purchased Axion.

Axion also has a launch platform which allows investors to get in early on projects that use the platform to come to market. Recent projects launched on the Axion platform include Legion Network, WARP and LUXY. Investors are sometimes airdropped tokens from these launches by simply holding Axion.

Investing in Axion

Axion is on the Polygon Network. To start investing in Axion you will need to add Polygon Network to your Metamask wallet. There are numerous articles on the Internet about how to set up Metamask. Once you have added Polygon Network to Metamask and add funds to it, you can either buy Axion on Sushiswap or in the Accelerator. You then go to the staking portal and stake your Axion for the desired period (up to 5555 days). There is a significant penalty if you withdraw staked funds before the staking period ends, so early withdrawal is not advisable. The interest earned on your staked Axion will depend on how long it is staked for.

Axion’s Future

Axion competes in the Defi space, which have hundreds of projects, and new ones launching every day. It is a very competitive field and project teams must bring their “A” games to stand out in this crowded field. The Axion team is well aware of this and have several initiatives in the pipeline in their bid to grow the project. The Axion Roadmap includes Axion Studios, an OTC Pool and Defi 3.0/Treasury Building.

Axion Studios is a game development platform that will be used to develop quality, revenue-generating games for the Axion ecosystem.

The OTC Pool is a deflationary measure whose purpose is to reduce sell pressure on the token and could potentially lead to higher prices. Fees from open market trading of Axion and funds from the Accelerator will be placed into this pool. Axion stakers can swap liquid Axion for USDC held in the OTC pool and avoid paying the sell tax for selling Axion on the open market. Only stakers are allowed to use the OTC pool, which should encourage more people to stake, and put even more upward pressure on price.

Tokens sold into the OTC pool will be burned and removed from liquidity, which means fewer tokens available for trading and potentially higher prices.

Axion’s Defi 3.0/Treasury Building is a shift towards adopting some of the latest trends in the Defi space. Many Defi projects now utilize a Treasury in which a portion of fees are set aside and can be used to provide price support in times of market volatility and can also be used to fund new projects or cover other costs geared towards advancing the project. As part of this new thrust, Axion will apply taxes on sell and buy transactions. A percentage of sell taxes will go to stakers as liquid Axion. Buy taxes will go towards building the Treasury and the OTC Pool. Treasury funds will be invested in yield farming platforms to earn additional revenue for the Axion ecosystem. This should benefit stakers in the form of higher Axion dividends.

A hard cap will be placed on the amount of Axion that can be minted. This will limit the supply of Axion and reduce sell pressure.

Final Thoughts

Axion has had a long and bumpy road so far and its success is far from guaranteed. However, it has a solid foundation from which it can build. The new initiatives outlined by the team shows they are thinking creatively and are committed to the project’s success. The leadership team is often the biggest factor in determining a project’s success in the crypto world. The Axion team has proven itself to be quite innovative and forward thinking.

Nothing is ever guaranteed in the crypto world, and Axion is up against many other projects. Axion, however, seems poised for long-term success, having shaken off its initial setback and steered by a leadership team committed to seeing the project achieve its full potential. Time will tell, but I think Axion is a hidden gem poised for future success.

This article is for information and educational purposes only, and nothing stated herein is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. Please do your own research and due diligence before making any investment decisions. The author has made every effort to ensure accuracy of the information in this article, but makes no representations or warranties, expressed or implied, to its accuracy, completeness, timeliness, or correctness. The author may own cryptocurrencies discussed in this article.

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jaycesondon

Accountant (CPA), equity research analyst and crypto enthusiast.