Token Utility
AXY is the native utility token of the Axynom protocol. It connects contributors, stakers, and ecosystem participants through a unified reward and coordination layer. AXY is not designed as a speculative asset. It is designed as a work token — earned, staked, and used by those building the ecosystem.
AXY powers three core functions: access, alignment, and accountability.
Contributor Rewards
AXY is the default reward token for approved contributions under the PoG system. When contributors earn Growth Points (GP), those points are later redeemable for AXY. The amount and availability of rewards are governed by the RewardsPool contract, which holds a portion of the protocol's token supply and fee income.
Redemption of AXY is permissionless and gas-efficient. Rewards may be subject to vesting, claim limits, or caps depending on treasury policy or ongoing campaigns.
The amount of AXY a contributor receives is a function of:
The GP value assigned to their contributions
The current redemption rate
The balance and policy of the RewardsPool
AXY, in this context, serves as a direct incentive for protocol growth.
Staking and Yield
AXY can be locked in the Axynom staking contract in exchange for yield. Staking operates on a lock-period model, where users choose from predefined durations with corresponding APY rates. The longer the lock, the higher the yield.
Yield is paid in AXY and sourced from the RewardsPool. The structure includes:
Fixed APY tiers (e.g. 5% for 6 months, 12% for 1 year, 30% for 2 years)
Early exit penalties routed to the Treasury
Reward boosts for continued staking after maturity
Staking not only provides yield but also increases governance power and future eligibility for contribution voting.
Governance and Voting Eligibility
AXY is used to determine voting power in governance processes, including:
Contribution approval voting (Phase 2 governance)
Protocol upgrade proposals (future)
Treasury allocation and ecosystem strategy (future DAO functions)
Minimum staking thresholds may be required to unlock specific governance rights. In combination with Lifetime GP, AXY forms the basis of contributor-weighted governance eligibility.
This ensures that influence is granted to participants who are both economically committed and actively engaged.
Treasury Funding and Sustainability
AXY indirectly funds the Treasury through the transfer tax mechanism. A percentage of all token transfers is redirected to the TreasuryPool, which is used to support development, audits, partnerships, contributor campaigns, and protocol operations.
No new AXY is minted after deployment. The token is finite. All spending is governed by smart contracts or manual disbursement by designated roles, with eventual transition to DAO oversight.
The sustainability of the ecosystem relies on careful Treasury management, where AXY allocation supports long-term growth, not short-term distribution.
Future Utility
AXY will also serve additional roles in future protocol phases, including:
Gas token for Axynom L3 (Orbit-based chain)
Staking requirement for partner protocol onboarding
Discount or priority access to CaaS (Contributions-as-a-Service) platform features
Collateral for unlocking contributor vaults or GP-backed reputation instruments
Each of these roles is designed to preserve AXY’s demand while embedding it deeper into protocol mechanics.
AXY is a working token with defined, enforceable roles that tie user participation to protocol value.
It exists to reward, secure, and expand the Axynom ecosystem, with mechanisms that scale naturally as the contributor base grows.
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