The Worldwide Asset eXchange or WAX, as it is popularly called, refers to a decentralized platform. It allows everyone to participate in this market where virtual game assets are exchanged.
Malcolm Casselle is the President of WAX. He says that this platform has clearly demonstrated how powerful these tokens of in-game items are. Introducing WAX has led to a reduction in transaction costs. This is because a marketplace has been created for games this way. Earlier it was not possible to do the transfer of assets. This was leading to the fractionalizing of player profits from any kind of centralized exchanges. But due to tokenization, the ownership of virtual assets becomes possible. This way a new economy is being created which is more accessible. This will also have the potential to get expanded into assets that are physical.
People have always faced the challenge of monitoring tokens on the blockchain to ensure that they are always tied to their asset. This is where WAX provides multi-layered governance. Such an approach leads to regulatory oversight that can even be from the token holders. This kind of exchange of virtual assets gets conducted by users. Malcolm Casselle specifies that they are the Transfer Agents and they have supervisory committees which are called Guilds. There are rating systems too. Malcolm Casselle also mentioned the delegated proof of algorithm that will be under stake consensus.
Transfer Agents need to perform their duties well. This is because the reputation of the Guild is at stake here. Besides, the financial stake gets affected too. This is why Guilds have to take proper action against those Transfer Agents that are underperforming. In case this is not done, they will not get re-elected by the token holders for governing their game. Malcolm Casselle has ensured that this economic loop keeps the WAX tokens connected to all their virtual assets.
Now it has become possible to own a small percentage of a physical asset. This kind of fractionalizing of physical assets is opening up new possibilities for people such as fans, collectors, and so on. This decentralizing of governance besides the delivery operations of exchanges makes WAX important.