Axion Staking: Everything You Need to Know

Here's a quick overview of how Axion staking works and the upcoming innovations explained.

Published December 10, 2020 Updated 4 months ago

The last year or so has brought a massive surge of the DeFi sector. Along with DeFi came various functionalities from the world of decentralized banking. People have started turning to projects that could increase their crypto holdings in a risk-free way.

Staking is likely the best example of this, as all it takes is for the users to lock up their coins for a specific period of time, and in return, they get rewards. This passive income can then be used for investing, trading, or it can simply be spent on various goods and services.

Of course, users can also use it to increase the amount they stake, and earn even more out of their next staking contract.

There are numerous projects dedicated to staking, but so far, none can offer the yields as high as the project described as the rising star of the DeFi sector — Axion. The Axion inflation rate is 8% per year, and all the tokens that it purchases through buybacks are directly distributed to stakers, which increases staking rewards dramatically.

Naturally, the rewards are still proportional to the users’ stake. So, let’s talk about that a bit more today, and discuss how you can stake AXN, what are the benefits, strategies, and more.

Axion Staking: How Does it Work?

Axion staking dashboard preview

One of the most appreciated things regarding Axion staking is that you can do it on your own terms. Of course, there is an agreement between you and the system which must be respected, which mostly revolves around withdrawing your coins at the right time.

If you opt to stake your cryptos, and then withdraw them before or after the pre-set date, you will, unfortunately, be penalized. These penalties will eventually be returned to the community. Tokens collected through penalizations are sold in exchange for Ethereum (ETH) in Axion’s daily auctions. After that, the majority of the proceeds are being used for token buybacks.

And, as mentioned, all tokens obtained this way are distributed among stakers. Naturally, it would be better for stakers to avoid this, but this is a necessary measure to keep Axion the way it is — a well-oiled machine that its users can use to make a profit. Not to mention that penalties tend to prevent mass sell-offs, which helps keep AXN price safe from strong volatility.

Still, as mentioned, you get to set your own terms, as well. For example, you can choose stake length, and set it anywhere between 1 day and 5555 days (15 years). All that Axion asks is that you respect that commitment to the letter.


You can withdraw staked tokens at any time, but doing so before the stake runs out will result in a penalty.

Axion Staking Tactics: A New Opportunity is Coming

Now, one question that constantly seems to re-emerge concerns staking tactics. Unfortunately, there is no universal staking tactic, since every staker enters the contract with their own goals and plans in mind. Those who stake for a longer period will receive greater rewards on the amount they opted to stake. Other than that, users are free to approach the staking feature however they like.

With that in mind, now IS a good time for long stakes, as Axion plans to initiate the Venture Capital Auctions (VCA) in the near future. For now, there are not a lot of details available, although they will be published when the project decides that the time is appropriate. However, once the VCA is initiated, Axion will be holding two auctions per week, and there will be 1 billion AXN in the auction pool.

Now, typically, Axion uses Ethereum obtained through auctions for token buybacks on various exchanges. However, the ETH it collects in VCAs will be used for a different purpose — to buy Wrapped Bitcoin (wBTC), as well as one other altcoin that the community has yet to vote upon.

These coins will also be used for redistribution to active stakers, and it is actually a unique feature in the crypto space. So, if you become an active staker now, these dividends from the VCA will be available to you directly. You won’t even have to wait for your stake to mature, which is a huge incentive for stakers.

Other than that, the best way to earn is through longer stakes, which is the most profitable approach to staking, as they simply pay better. This is due to the fact that longer stakes generate more share bonuses for the stakers, who get to gain roughly 20% bonus shares per year staked, up to 5 years.

How do Axion Bonuses Work?

Axion bonuses for stakers are another incentive that the project provides for its users to encourage longer active stakes.

Essentially, there are 5 Big Pay Days (BPD) coming, with the first one being on the 351st day after launch. In order to be eligible for BPD payouts, users need to have their stake active for a minimum of 350 days. Of course, they can also be active for longer than that for later BPDs.

The good news is that it doesn’t matter when you placed your stake — you can even do it only 5 days before the BPD, as long as the total length of the stake is specified to be 350 days or longer.

Now, the first BPD will pay 10% of the total unclaimed Freeclaim Axion tokens. The 2nd BPD will pay 15% of the total unclaimed Axion tokens, and the percentage goes up by 5% for each following BPD, up to the 5th BPD, which is the last, maximum BPD and it offers 30% of unclaimed Axion tokens.


The total payout of your stake depends on how many Axion shares your stake generates. By achieving various bonuses, you can increase the number of shares and increase your final profits.

How do Axion Penalties Work?

Locking up your tokens for staking on Axion does not put them outside of your reach until the set period runs out. Instead, you are allowed to unstake at any time. However, if you do so before the pre-set period, you will have to pay an Early Unstake Penalty.

The penalty depends on the stake length, as well as how big part of the stake is fulfilled. It will also be calculated based on the sum of the stake, as well as the payout by the end of the stake.

You should also be aware that there is a penalty for those who fail to unstake their tokens in time, called Late Unstake Penalty. This one will go into effect if you leave your stake unattended after the agreed-upon staking period runs out. Not immediately, of course, as you will get a 14 day grace period. After that, you will be penalized 0.143% for each day that goes by with the stake not being closed.


The funds collected from penalties are sold in auctions in exchange for Ethereum. A portion of the funds goes to token buybacks, while another portion is used for the development of the Axion network and ecosystem.

How to Start Staking Axion?

All that remains is for you to learn how to start staking on Axion. The project’s developers have done their best to make the procedure as simple as possible, so that new and experienced stakers could easily find their way around.

The first thing that you need to do to start staking is to go to the staking platform. It is easy to find — just search the top menu for the label ‘Staking.’

Once inside, you will see a headline that says “Create Deposits.” There will be three boxes, with the left one showing your connected MetaMask account, and how many AXN tokens you have within it. This is where you can enter the amount of Axion that you wish to use for staking.

The center box will allow you to select the length of the stake. As mentioned earlier, you can choose anywhere from 1 to 5555 days. This is an important step that should be considered carefully, as it will put your coins out of reach, at least when it comes to withdrawing them without being penalized for it.

Lastly, there is the third box on the right, that shows some important information regarding your stake, based on the parameters you have entered in the previous two boxes. For example, you will see the shares that are attached to your stake. These shares will tell Axion smart contract how much of the daily payouts is your stake entitled to.

Naturally, the more shares you have here — the better. And, as mentioned, the longer stakes also get bonus shares, so you get to earn more by holding your coins locked up for a longer period. There is also a share rate, which shows you how much each share is worth in AXN.

Then, there is a list of BPDs and their dates. Once again, to be eligible to receive BPD bonuses, all you need to do is set the stake length for longer than 350 days. If you opt to hit all five BPDs, you will have a massive bonus at the end of your stake. Just remember that this is quite a lengthy period, and you need to stay committed in order to receive all these rewards and bonuses, as well as to avoid any penalties.

Our advice is not to rush with your deposit. Change the amount you plan to deposit, as well as the length of your stake, and see how these changes affect your earnings. Once you decide how much to stake and for how long, you should press the ‘Deposit’ button, and confirm the transaction in your MetaMask. Remember that there will also be gas fees to pay for the transaction.

But, after all of this is done, all you need to do is refresh your browser, and your stake will show on the Staking page.