Axion Devs Announce a Highly-Anticipated Ecosystem Update

They recently announced a highly anticipated ecosystem update, and it is massive.

Published December 16, 2020 Updated 5 months ago

Crypto project Axion is very young, but despite this, it already had quite a few events in its short history. Unfortunately, not all of them are good, as the project suffered a hacking attack on the day of its Mainnet launch, and from one of its own subcontractors, no less.

However, despite the difficult start, the project managed to pull through, thanks — in no small amount — to its extremely supportive community.

Since the attack, the community helped the project with making up for the lost funds, and the team behind Axion vowed to make it up to each member. The project managed to relaunch on November 13th — 11 days after the attack, and since then, its performance can be described as nothing short of thriving.

The development continued uninterrupted, as the Axion team continues to work very hard to transform its ecosystem into its best possible shape.

Axion Announces A Major Update

The update was announced on the project’s social media channels on December 17th. The developers noted that they have been working on it for several weeks, and that it will be the largest positive shift in the Axion ecosystem since launch.

The announcement further notes that Ater it goes live, the dev team will be going on Axion to fill in everyone in the community about the game-changing positive benefits that are now available. Some of the community members will also be able to hop on Axion as well, following that.

They also warned that the website will be under maintenance, and that users should not try to buy or sell anything until the process is complete.

What is the Update About?

Axion’s team provided more details regarding the update in a recently posted a document that addresses the changes, and why they are necessary.

In it, they start by noting that there is no problem, per se. The Axion Network is there to operate as a staking platform, and as such — it is working well. Interest/dividends are distributed without fault, and the project works exactly as it should.

With that said, developers have noticed that there is room for improvement, particularly when it comes to the project’s current token economic model in the form of auctions.

For those who do not know — Axion allows users to invest in CDs and receive an 8% yield. However, those who withdraw their tokens before or after the specific time agreed upon in the smart contract will get penalized. Essentially, the project will take some of the tokens, which are then sold at auctions, and the funds that the project raises this way are used for token buybacks (80%), and ecosystem development (20%).

Now, the devs have noted that the current auctions system is not as efficient as they expected it to be, and it doesn’t produce the same results like the ones presented in the whitepaper.

The project’s referral system was abused by users who were self-referring in order to capitalize and create higher auction proceeds than intended.

With the project’s goal being to reward stakers, and not traders, they decided to create a solution.

How Does it Work?

The upgrade will essentially introduce an upgradeable, enhanced, sustainable economic model, known as layer 2 upgrade.

While large and important, the upgrade will keep the entire network as it is regarding stakes and their maturation periods. In other words, stakers will not have to start over or lose the progress they have achieved already.

However, Uniswap asset liquidity will be withdrawn by the project’s team to safeguard it for the upgrade finalization. Finally, the project promised to compensate anyone whose AXN may be negatively impacted.

The biggest change that the upgrade is bringing is contract upgradeability, with the upgrades to the contract being controlled via multi-sig. In other words, transactions will have to be approved by multiple people, for added security purposes.

The upgrade will essentially work as a safeguard, to allow the fixing of vulnerabilities or unfavorable conditions within smart contracts, as the team explained it.

So far, Axion presented itself as a reliable project with a good idea, reachable goals, talented developers, and a loyal, supportive community. It is also encouraging that the team is not leaving anything to chance, but is working to fix the issues that go against the project’s philosophy.

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Ali Raza Ali is a journalist with extensive experience in content creation, including online journalism and marketing. He holds a master's degree in finance and enjoys writing about cryptocurrencies and FintTech. Ali's work has been published on a number of major financial publications.