Sustainability Model

A staking system is only as strong as its ability to last. Axynom’s staking rewards are governed by a sustainability model that prevents pool exhaustion, avoids runaway emissions, and ensures that yields can be maintained over multiple years, not just during the early phases.

Rather than offering artificially high returns that collapse over time, Axynom structures staking to balance participant incentives with the protocol’s financial health.

The sustainability model is enforced at the contract level and supported by ongoing treasury policies.

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Core Principles

The sustainability of Axynom’s staking rewards is based on three key mechanisms:

1

Capped Rewards Pool

All staking rewards are sourced from a dedicated Rewards Pool. The amount available for distribution is finite and visible on-chain. Yields are tied directly to pool balance, not arbitrary token printing.

2

Transfer Tax Refills

Part of the 2.5% transfer tax on AXY transactions is routed to the Rewards Pool. This creates a continuous, usage-driven funding mechanism where protocol activity replenishes the pool without relying on inflation.

3

Treasury Support

In cases where the Rewards Pool balance falls below operational thresholds, the Treasury has the authority (under transparent governance) to refill the Rewards Pool with surplus tokens or investment returns.

These three layers ensure that staking rewards are funded responsibly and dynamically.

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Reward Distribution Logic

Reward payouts are computed based on:

• Total AXY staked per lock period

• Lock duration (longer locks receive higher APY)

• Available balance in the Rewards Pool

If staking participation grows faster than replenishment, APYs do not automatically decrease. However, caps on total staking deposits and dynamic refill logic protect the system from overextension.

If necessary, staking caps can be adjusted to maintain balance between rewards and pool longevity.

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Risk Management

Several protections are built into the system:

• No infinite APY scaling: Staking rewards are capped by pool size, not by new deposits.

• No inflationary minting: New AXY tokens are never minted to cover staking deficits.

• Refill mechanisms: Treasury injections and tax-based replenishment create safety nets.

• Emergency throttles: Governance can slow or pause reward emissions if pool health requires it, with transparent communication.

These features ensure that Axynom’s staking system prioritizes durability over short-term participation spikes.

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Why Sustainability Matters

In DeFi, many staking systems collapse because they treat rewards as marketing rather than economics. Axynom rejects this approach.

Staking is a critical part of the protocol’s architecture. It must remain viable for contributors, participants, and the ecosystem, not just during launch hype, but through multiple cycles of growth.

The sustainability model ensures that those who trust the protocol with their AXY are rewarded not just today, but for the life of the protocol.