Delegation

DPoS (Delegated Proof of Stake) delegation is a mechanism for staking your AXM with a validator. This mechanism is designed with four objectives:

1. Strengthening blockchain stability.

2. Mining new AXM.

3. Provide the community with an attractive source of income for years to come.

4. Reducing the free circulation of AXM.

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Rewards

There are 2 types of delegation rewards:

1. Mining of new AXM

The reward size for mining new AXM can reach up to 20% per month and is determined by a unique mechanism known as the floating rate. This mechanism continuously monitors the ratio of all delegated AXM to all mined and adjusts the reward rate accordingly. More details about this risk management mechanism are described below.

Mining of new AXM occurs with the production of each new block in the Axiome Chain (~5 seconds), and 0.3% of your reward is directed to the validator. Although the validator fee has a minor impact on the final size of your reward, it helps the validator maintain and improve its node, thereby enhancing the stability of the blockchain.

Example:

You delegated 10,000 AXM. The reward rate is 20% per month. So, after 30 days, you should receive 2,000 AXM as a reward, minus the validator's fee of 0.3% (6 AXM). Total: 1,994 AXM.

If due to blockchain congestion any of the blocks is delayed, you will not miss your reward because mining is tied not to the block, but to the second.

2. Share of network fees

All transactions in Axiome Chain require payment of a fee to validators for execution. 30% of the collected fees are subject to burning, while the remaining amount is distributed as follows: 95% to delegators based on their share of delegated AXM relative to the total stake, and 5% to validators for maintaining and improving their nodes.

Example:

The total fee from all transactions included in a block was 100 AXM. 30% (30 AXM) of this fee is immediately subject to burning.

There were 7 validators involved in signing the block, and they evenly divided the collected fee (10 AXM each).

You delegated 200 AXM to one of these validators, while the entire stake of the validator was 1,000 AXM. Thus, your share in their stake is 20%. This means your reward will be 20% of the fees collected by the validator, minus the validator's 5% fee.

Total: 10 * 0.2 - 5% = 1.9 AXM.

• Choose the most stable validators. If a validator misses participating in block signing, they won't earn you any delegation rewards (neither from mining new AXM nor from the share of network fees).

• In the blockchain explorer, pay attention to the Uptime indicator. The higher this indicator, the more stable the validator.
• Delegate to multiple validators to minimize the risk of missing out on rewards.

Risk Management

To minimize the risks of hyperinflation, in addition to the three burning mechanisms, a mechanism was implemented that automatically adjusts the current delegation reward rate depending on the ratio of all delegated AXM to all mined ones.

This mechanism allowed the community to independently control the dynamics of mining new AXM.

The healthy ratio of delegated AXM to mined AXM is set at 95%. If the ratio consistently remains at 95% or higher, the reward rate will be at its maximum, which is 20% per month.

The formula for calculating the ratio is:

Delegated / Mined * 100%.

*Mined = all AXM not delegated + all AXM delegated + all AXM in the process of undelegation.

*Accumulated but not yet claimed delegation rewards are not included in the calculation.

Reward Rate Depending on the Ratio:

Ratio	Rate
>95%	20%/mo.
90% - 95%	17%/mo.
85% - 90%	14%/mo.
80% - 85%	10%/mo.
75% - 80%	8%/mo.
70% - 75%	5%/mo.
65% - 70%	2%/mo.
<65%	1%/mo.

The mechanism is fully autonomous and monitors the ratio every block (~5 sec.), ensuring an instantaneous response to changes.

The basis for the variable delegation rate mechanism is similar to the experience of central banks during periods when inflation exceeds acceptable values. In such times, central banks raise interest rates, leading to a reduction in the growth dynamics of the money supply in the market. The more extreme the inflation growth rates, the more aggressive the regulator's policy regarding rates.

Why is it beneficial for the community to maintain a healthy ratio?

• It's beneficial to delegate own AXM.

• With high percentages, it's easier to grow in the partnership program.
• Increases the chances of stabilizing the price of AXM due to maintaining a healthy coin supply deficit.

You can monitor the ratio of delegated AXM to mined ones, as well as the current reward rate, directly in the Axiome Wallet app:

How to delegate AXM?

In the Axiome Wallet mobile app, go to the "Staking" tab and open the "AXM Staking" section.

Then tap the "Delegate" button. In the new window, select a validator and enter the amount.

Tap "Confirm". Your AXM will be transferred from your wallet to the selected validator's stake.

A partnership fee of 15% is charged for each delegation to the higher-level users in the partnership program. It motivates the community to become more involved in the project's development by paying generous partnership rewards.

When delegating, don’t forget to leave a few AXM in your wallet to cover future network fees. Otherwise, you won’t be able to even claim your rewards.

Where do delegation rewards go?

All delegation rewards accumulate in the same section in the "Delegated" card. Tap "Claim" to transfer the rewards to your wallet.

How to undelegate AXM?

Go to the "AXM Staking" section and tap the "Undelegate" button.

In the pop-up window, select the validator and enter the amount you want to undelegate. Then tap "Confirm".

After 30 days, your AXM will be transferred back to your wallet minus a 10% burn fee.

You can have a maximum of 7 active undelegations within one validator.

How to cancel undelegation?

If you cancel an active undelegation before it’s completed, your AXM will return to the validator's stake and the 10% burn fee will not apply.

To do this, find the transaction labeled "Initiating undelegation" in your AXM wallet’s transaction history.

Tap the transaction, then tap the "Cancel" button in the pop-up window.

Refresh the page, find the same "Initiating undelegation" transaction again, and make sure there is a red cross next to the amount — this confirms that the undelegation was successfully canceled and the AXM were returned to the validator’s stake.

When canceling an undelegation, your AXM are returned to the validator’s stake without triggering the 15% partnership fee again.

Quick actions

Click on the validator you've already delegated to and select a quick action.

The terms of the delegation mechanism can be adjusted through voting among validators to respond promptly to possible market changes. Any innovations will be accompanied by prior community notification.