A Guide to Axion Auctions

A guide on what an Axion auction is all about and how you can participate.

Published December 10, 2020 Updated 4 months ago

What is Axion?

Axion is time-lock savings account on the Blockchain. Like CD (Certificate of Deposit) accounts, which are one of the most popular products offered by banks worldwide because of their very competitive interest rates and provide a safe way to lock up your money. But as you know, cryptocurrency was designed to eventually replace real currencies in our failing financial system. With Axion, you get a fixed inflation rate of 8% on the fund you have locked up.

So how do you buy Axion? One way is to purchase through Uniswap, just as you’d buy any other altcoin. Another better way is buying through Axion auctions.

What is the Axion Auction?

Every day, there’s an auction held for a number of Axion tokens that you can bet on with your Ethereum. When you buy axion from the daily auction pool, you get up to a 10% discount compared to the Uniswap exchange price.

Also, how many Axions you earn is directly proportional to how much Ethereum you put in compared to the rest of the pool.

If, for example, 10% of the total Ethereum in the pool for the day comes from you, you get 10% of the Axion in the pool for that day. After each day’s auction, 80% of the Ethereum in the pool for the day is used by the smart contract to automatically repurchase Axion from exchanges like Uniswap, which helps to pump the price of Axion. All of the tokens bought back are distributed to Axion stakers as dividends – the remaining 19% goes into the development of axion and 1% to the Eden reforestation project.

The whole Axion system was designed to increase the value of Axion and be a self-sustaining peer-to-peer global currency of the near future.

Note – Axions from daily auction pools are automatically staked for 60 days period, which can be increased to 5555 days.

Where does the Axion in the Daily Auction Pool come from?

The Axions in the daily auction pool come from people not claiming their Axions, and penalties for early exit or late withdrawals.

Unconverted/Late Free claims

If you were involved in the pre-sale, you would have earned the Hex 2T or Hex 3T tokens which you can convert to Axion at the rate of 1:1. Therefore, every week that people don’t claim their Axion with Hex 2T or Hex 3T they hold, they lose a cumulative 2% of their balance, which goes into the auction pool that you can bid on.

Hex holders can free claim Axion with their Hex tokens, up to 10 million Hex, at the rate of 1:1. Tokens over that limit will be sent to the weekly auction pool. Hex to Axion exchange is available for just 350 days, so there’s also a late claim penalty for Hex holders every week, which goes into the pool.

Penalties from early exits or late withdrawals

The staking feature allows you to lock up whatever amount you want for however long you want to earn huge liquid interest. You’re incentivized to stake for a longer period because you earn more interest for longer stakes. Also, you’re incentivized not to unstake your Axion earlier than agreed because there will be penalties. Therefore, penalties for early unstaking and late withdrawals go into the auction pool.

How to participate in the Axion auctions

Looking to get your hands on some Axion through the auction platform? You need to first familiarize yourself with the platform. When you go to the auction page, you see something similar to the images below:

Axion auction dashboard

#Note

Some data might not be the same based on when you’re reading this post
1 Shows the amount of Ethereum you have in your Metamask wallet
2 Where you input the amount of Ethereum you’d like to bid in the day’s auction
3 Total number of Axion that is up for auction for the day
4 The total amount of Ethereum people have sent in on that day
5 Amount of Axion you’ll get for 1 Ethereum when you buy through the auction
6 Amount of Axion you get for 1 Ethereum on Uniswap.

Axion auctions currently in progress

7 Dates for daily and weekly auctions
8 Amount of Axion in the pool for each day’s auction
9 Countdown to the end and beginning of a new auction

Now that you’re a little bit familiar with the platform, here are the steps to participate in the auction:

Step One: Install the Metamask extension on your browser, save your seed phrase (12-word phrase) in a secure place (probably write them down in 3 different places known only to you) and set up your Ethereum wallet.

Step Two: Once you have your wallet set up, it’s time to send some Ethereum into your wallet. Hover your cursor over the account name to copy your Ethereum wallet address.

Paste the address into the ‘Recipient’ field on any platform you are buying Ethereum from (You can easily purchase from exchanges like Coinbase or Binance).

Step Three: Now that you have Ethereum in your wallet, head over to the auction site and log into your Metamask wallet. You should see something similar to the images above.

Step Four: Enter the amount of Ethereum you’re willing to bid into the input field (2). The only thing left to do then is to press the “SEND” button. This will prompt a confirmation in your Metamask wallet just by the corner of your window. Confirm the transaction, and you’re in!!

#Important

Be cautious of the Gas fee. They tend to be ridiculously high sometimes. You can set for lower fess if it’s too high.

Step Five: At the end of the auction, you see a “Withdraw” button. Click on it, and the total amount of Axion you receive will appear on the staking page to be locked for a minimum of 60 days.

#Note

The amount of Axion tokens you get is determined after the auction ends, not when you place a bid.

Ready to build for the future?

Feel you should have gotten involved with Bitcoin early? Here is another chance to invest in a project that hopes to even out-perform Bitcoin. Because Axion uses a form of tried-and-trusted investment that the average person already understands, it will easily attract investors, which will only increase its value. You can invest in Axion by bidding in the daily auction, and stake your funds for interests and dividends.