Everything You Need to Know About Axion

Introducing Axion — a DeFi project that allows stakers to earn up to 8% yield, in addition to several other rewards and bonuses.

Published January 26, 2021 Updated 4 months ago

It has been nearly 12 years since Bitcoin was launched, following the financial crisis of 2008. The banks’ greed caused the economy to collapse, which, in turn, caused an individual or team known as Satoshi Nakamoto to create Bitcoin — a decentralized digital currency that has launched the entire crypto wave that we know today.

Over these 12 years, various crypto projects emerged, following every new trend that has taken over the industry. In 2017, for example, ICOs (Initial Coin Offerings) were a major hit, despite their flaws. These flaws eventually caught up with the trend, however, which caused it to end.

After that came IEOs (Initial Exchange Offerings) and STOs, (Security Token Offerings), and now, in 2020, the crypto industry is focusing on DeFi (Decentralized Finance).

Unlike others, DeFi is not offering projects with empty promises. Instead, it is offering projects that provide services such as staking, lending, yield farming, decentralized exchange, and more. The DeFi sector is actually in the middle of its second wave, which gave us more refined projects, such as Axion Network — a platform offering the crypto-equivalent of bank-issued CD (Certificate of Deposit).

What is Axion?

Axion is a new, revolutionary crypto investment product that may have started with the idea of offering a crypto version of CDs. It was actually based on another project, called HEX, that offers the same service. But, since then, Axion has evolved and it became superior to what the banks and HEX alike can offer in every way.

Axion achieved this by leveraging the crypto market forces in order to create an inflationary system that provides investors with 8% returns. This is actually quite impressive for CDs, as the ones offered by the banks are typically four times lower.

In addition to that, Axion also offers major bonuses to its investors, thus incentivizing them to participate in its network and receive even higher returns.

How Does Axion Work?

Axion actually follows a rather simple concept, and it is extremely easy to get into. All that investors need to do in order to get into it and start receiving all the rewards and bonuses is buy some AXN tokens and stake them. That is all there is to it, and the system will take care of the rest.

You see, like most other DeFi projects, Axion’s system also uses smart contracts to govern the agreement which provides investors with automated returns. If the investors stake the money and then withdraw it too soon, they have to pay a penalty.

A similar thing happens if investors do not withdraw their funds at the time predicted by the contract, although penalties are lower in that situation. These penalties collect tokens from users who did not fulfill the terms of the agreement, and are then sold in daily auctions.

The money collected from selling tokens at auctions is then used to buy back AXN tokens from major crypto exchanges, thus ensuring that they will have a natural upward inflationary pressure on the AXN price through buybacks. Axion uses 80% of the money collected through auctions for this, while the upward inflationary pressure creates an 8% yield that goes to stakeholders.

Note: 20% raised from the auctions will be used to further help Axion’s development and improve the project’s ecosystem and liquidity.

Important: While Hex uses a similar penalty system, as much as 50% of the token penalties are sent to its founder, which is yet another example of a project using the community to enrich its creators.

AXN stakeholders receive even more bonuses if they hold their tokens for longer periods, which is a mechanic put into place to prevent major selloffs that have damaged plenty of major projects in the past. Not to mention that holding the tokens also allows users to participate in the project’s network development through voting and submitting proposals.

In other words, Axion was designed to keep itself afloat, while at the same time, it provides money for those who buy it, use it, or simply hold it in their wallets.

Axion’s History: How the Project Got Betrayed, and How it Came Back

Axion is not an old project — it has only been around for a few months. Its official launch was scheduled for November 2nd, and everything happened just the way it should.

That is, until the team discovered that one of the subcontractors that it hired decided to add flawed code after all the audits were done, with the intention of exploiting it for their own gain.

A subcontractor going by the name of Ilya Maximovich Solovyanov, who worked for RocknBlock at the time, decided to inject a vulnerability after both Axion and several third-party auditors went through the code and ensured that there are no errors or issues of any kind.

After the launch, the subcontractor attacked the project’s network, stealing around $500,000 from Axion. Now, for most projects, this would have been a total demise. However, Axion managed to pull through and emerge stronger than ever, thanks to its outstanding community.

The project’s fans banded together, raising $500,000 in only a few days, and thus replacing the funds stolen by the attacker. The token’s price, which dropped nearly to $0 after the theft, started seeing recovery, and Axion managed to hold a re-launch on November 13th — only 11 days after its original launch.

In other words, in only 11 days, Axion saw its launch, the subcontractor’s betrayal, an investigation that determined what happened, the community’s effort to restore the project, and the second launch that brought Axion back from the brink of a shutdown.

The flawed code was located and removed, and every pair of eyes connected to the project in any way kept a close watch on everything that was being done to the project since then.

Note: Axion has a code repository on Github, which was reviewed by a verified developer team. Everything is immutable as it was put in a smart contract, and the code has also been audited by Hacken and Certik — the industry’s best firms, among other independent auditors.

Axion’s relaunch also included steps that would help stakeholders recoup their losses. Every token holder or staker received newly-minted AXN tokens in an airdrop at a 1:1 ratio, thus stepping away from the version of the token that got stolen. Also, investors did not have to do anything to receive the new coins, including pay any fees. The tokens simply appeared in their wallets one day, and that was it.

On December 12th, about a month after the relaunch, Axion published some details regarding its community of stakers. According to its tweet:

  • 84% of the circulating supply was is staked
  • The average stake length will be 900 days
  • As many as 876 individuals opted for 15-year stakes
  • There are 18,500 stakes in total
  • Average stake is around $1,500, or 10 million AXN
  • So far, around $26.4 million, pr 176 billion AXN, was staked in total
  • The project also planted 350,000 trees

What Does the Future Hold for Axion?

Axion’s goal is to become the ideal global currency, where inflation would increase the purchasing power of the people within the project’s network. Axion also has a number of partnerships waiting to be integrated in online payment solutions, as well as in-person solutions.

Eventually, the project hopes to be used in everyday life and for every purpose. Merchants, for example, will be able to choose whether they wish to accept AXN itself, or fiat converted from AXN payments.

Users can already purchase AXN on Uniswap, and join the project’s community on Telegram and Discord to keep track of all the newest announcements and developments.