# Executive Summary

Axiom is a prediction market for XRP and RLUSD holders, built on a dual-layer architecture: Axiom Theorem and Axiom Prime

Axiom is a next-generation prediction market built for XRP and RLUSD holders. It enables users to trade on global events, crypto trends, sports outcomes, political developments, and the speculation culture surrounding Ripple, XRP, and the XRP community. The platform requires no new token, no NFTs, and no special infrastructure. Users simply deposit the assets they already hold and begin trading.

At launch, the public-facing product is the prediction market layer (Axiom). Under the hood, Axiom is powered by a deeper two-layer architecture made up of:

1. **Axiom Theorem (Markets)** which is the trading layer where users buy and sell outcome tokens in event-based markets.
2. **Axiom Prime (Yield)** which is the staking, yield, and decentralized resolution layer that secures market outcomes using stake-weighted governance.

Axiom introduces a new model for prediction markets by linking market integrity directly to economic weight. Users stake value in Axiom Prime to earn yield from market activity, and that same stake determines who can create markets, propose outcomes, challenge proposals, and vote on resolutions. Good governance decisions generate rewards. Dishonest or incorrect decisions result in penalties. This creates a self-sustaining feedback loop where the capital that earns yield is also the capital that protects truth.

Unlike token-based governance systems, Axiom uses non-transferable share tokens tied directly to real staked value. This eliminates governance token speculation, removes liquidity fragmentation, and prevents governance power from being bought or borrowed. Decisions are made by those with the most economic exposure, which aligns incentives around accuracy and honesty.

Axiom Protocol is built on the XRPL EVM Sidechain. It leverages fast settlement, native XRP liquidity, and smart contract capabilities. Users deposit XRP or RLUSD from anywhere ([Xaman](https://xaman.app/), [Joey](https://joeywallet.xyz/), CEX etc.) into the platform, trade in markets, and can withdraw available balances or exit positions when liquidity exists. All bridging and infrastructure complexity are handled behind the scenes using [Axelar](https://www.axelar.network/) and [SquidRouter](https://www.squidrouter.com/).

For AI agents, Axiom CLI is the recommended interface. This does not replace direct onchain access. The protocol remains decentralized, and supported permissionless smart contract functions remain available to anyone. The CLI is preferred because it offers a more consistent and ergonomic workflow for agents.

Key features include:

* No native token
* Trade using XRP or RLUSD (soon)
* Decentralized market creation and resolution
* Yield derived from real economic activity rather than inflation or offchain strategies
* Penalty and reward mechanisms that incentivize honest governance
* Optimistic resolution with challenge and vote pathways

Axiom is built for XRP holders. This community is already highly predictive and deeply engaged in discussions about future outcomes. They debate predictions every day. Axiom gives those predictions a market.

Axiom’s goal is simple:\
**To create the most trusted decentralized prediction market.**


# Vision

Axiom aligns honesty with profit and dishonesty with loss, creating a trusted decentralized forecasting layer

Axiom is built on a simple but important principle. The most reliable way to secure truth is to align it with real economic weight. People who put value behind their beliefs tend to act honestly. If honesty is rewarded and dishonesty is penalized, a market can produce outcomes that are trustworthy and that do not rely on intermediaries.

Axiom’s vision is to create the most trusted and most widely used decentralized prediction market, powered by XRP and RLUSD. The XRP ecosystem contains one of the most active and engaged communities in the world. It is also a community defined by prediction. People constantly debate timelines, catalysts, regulations, and global events that may influence the future of XRP. Axiom converts this constant energy into a new form of utility. It gives these users a place to trade on the outcomes they already discuss every day.

Axiom is designed to be simple to use. You deposit assets you already hold. You enter markets with one click. You can trade out of positions when liquidity exists and redeem them after resolution when needed. All infrastructure hidden behind the interface is automated. All complexity is abstracted away.

That simplicity should also extend to automation. For AI agents, Axiom CLI is the recommended interface because it provides a more consistent and ergonomic way to discover markets, inspect state, and execute common user flows. But the protocol remains permissionless underneath, so direct smart contract interaction is still available.

Under the surface, Axiom is also designed to be deeply decentralized. Market creation is controlled by the top stakers in Axiom Prime. Outcome proposals are submitted by stakers with the most economic weight. Challenges and votes are decided by those who have the most to lose if the truth is misreported. There are no governance tokens, no side markets for influence, and no way to buy governance power. Everything is anchored to real stake.

The long term vision for Axiom is to become a global forecasting layer that is powered by XRP and stablecoins. A layer where communities, institutions, and individuals can tap into a decentralized system that rewards accuracy and punishes misinformation. A layer where markets evolve naturally from the conversations people already have. A layer where truth is not decided by a central entity, but by the economic consensus of informed participants.

Axiom aims to make prediction markets both accessible and credible. It aims to bring new utility to XRP and RLUSD holders. It aims to create a new relationship between markets, governance, and truth. And it aims to build an ecosystem where users are rewarded for being early, being informed, and being right.

This vision is achieved by a system where liquidity powers truth, and truth powers yield. Axiom brings these concepts together into one unified protocol for the XRP world.


# What You Can Do on Axiom

A truly decentralized approach to prediction markets and onchain yield

Axiom is designed to feel simple and familiar. Users do not need to understand the underlying architecture in order to participate. Everything that matters is presented in a clear and accessible way. On Axiom, users can do the following.

{% content-ref url="/pages/FlZDzBwV5P9JQSmiM4dL" %}
[Trade](/whitepaper/what-you-can-do-on-axiom/trade)
{% endcontent-ref %}

{% content-ref url="/pages/vQwHITwSOKYSAoQVufig" %}
[Create](/whitepaper/what-you-can-do-on-axiom/create)
{% endcontent-ref %}

{% content-ref url="/pages/TIDXgdEPxeKPRYUh6H7e" %}
[Stake](/whitepaper/what-you-can-do-on-axiom/stake)
{% endcontent-ref %}

{% content-ref url="/pages/gCM1vNqjX7UtGcEYWe0W" %}
[Resolve](/whitepaper/what-you-can-do-on-axiom/resolve)
{% endcontent-ref %}

{% content-ref url="/pages/4r8WnRvTM9OWkhpIoulp" %}
[Withdraw](/whitepaper/what-you-can-do-on-axiom/withdraw)
{% endcontent-ref %}

{% content-ref url="/pages/DLuelkP32Lng0PwkrDq4" %}
[Earn](/whitepaper/what-you-can-do-on-axiom/earn)
{% endcontent-ref %}


# Trade

#### **Trade the outcomes you care about**

Axiom lets you buy and sell outcome tokens in markets that relate to:

* Ripple and XRP ecosystem timelines
* XRP price targets and catalysts
* Regulatory and legal outcomes
* Global politics
* Sports
* Crypto trends
* Technology and macroeconomic events

Axiom uses a CLOB backed by Conditional Tokens. That means:

* you can place limit orders on outcomes you care about
* you can take existing liquidity for immediate execution
* you can hold tradable YES or NO style positions before resolution
* you can exit by selling into the book if liquidity exists
* you redeem winning tokens after the market resolves

This gives Axiom a trading experience closer to a real exchange than a locked prize-pool market.


# Create

#### **Create your own markets (for eligible stakers)**

Users who are in the top 50 percent of Axiom Prime stakers are able to create new prediction markets. Market creators:

* Define the event and outcomes
* Choose the settlement asset (only XRP to begin)
* Provide evidence sources
* Shape the quality and breadth of Axiom's market catalog

Market creation is a key part of Axiom’s decentralization. Over time, the majority of markets will be created by community members, not the development team.


# Stake

#### **Stake and earn yield through Axiom Prime**

Users can stake XRP in Axiom Prime to earn yield. Yield comes from:

* Market commissions
* Penalties applied to incorrect governance participants
* Rewards for accurate resolution activity

There are no emissions, inflation or DeFi strategies involved. Yield is generated entirely from real economic activity inside Axiom Protocol. Stakers receive non-transferable share tokens that represent both their yield-bearing position and their governance weight.


# Resolve

#### **Help resolve markets and earn rewards**

Axiom uses a decentralized governance model to determine market outcomes. Eligible stakers can:

* Propose outcomes
* Challenge incorrect proposals
* Vote on final results
* Earn rewards for accurate participation
* Lose stake for dishonest or incorrect participation

This creates a fair and economically grounded system for determining truth without relying on centralized oracles.


# Withdraw

#### **Withdraw available balances and settled positions**

Stakers can withdraw their vault positions except during brief governance lock periods tied to active proposals or votes.

Traders can:

* sell positions before resolution if liquidity exists on the order book
* merge complete sets when appropriate
* redeem winning positions after the market resolves

This keeps the experience flexible without implying that every market position is instantly withdrawable in all conditions.


# Earn

#### **Earn incentives for adding real activity and protecting truth**

Axiom includes several mechanisms that reward users who improve the quality and integrity of the platform:

* **Axiom Points from settled CLOB fills during bootstrap**
* **Maker bonus** through the live `1.5x` maker points multiplier
* **Taker rewards** through the live `1.0x` taker points multiplier
* **Referral points** worth `10%` of a referee's base trading points
* **Consensus bonus for unchallenged proposers**
* **Penalty redistribution to correct voters**
* **Yield for stakers once Axiom Prime is fully active**

Users who provide useful liquidity, trade actively, refer good users, and participate honestly in resolution benefit the most.


# How Axiom Works

Axiom is a two-layer protocol

Axiom is built on a dual-layer architecture. The prediction market is the trading layer that users interact with directly. The staking, yield, and governance layer secures the integrity of markets and determines how outcomes are resolved.

{% content-ref url="/pages/KPX7V4OPl4NfVw98aSWt" %}
[Prediction Market](/whitepaper/how-axiom-works/prediction-market)
{% endcontent-ref %}

{% content-ref url="/pages/KpRV0KeRxSydGso5GJ0u" %}
[Staking and Yield](/whitepaper/how-axiom-works/staking-and-yield)
{% endcontent-ref %}

{% content-ref url="/pages/wY71dxqgSM9mscouZIeN" %}
[Axiom Governance](/whitepaper/how-axiom-works/axiom-governance)
{% endcontent-ref %}


# Prediction Market

Axiom uses a Central Limit Order Book backed by Conditional Tokens. Instead of pushing every trade into a shared outcome pool, Axiom lets users buy and sell outcome tokens through an order book with onchain settlement.

This gives users a more familiar trading experience:

* You can post a price and wait for someone to trade against you.
* You can take liquidity immediately if you want instant execution.
* You can hold positions through resolution and redeem winning tokens afterward.

***

### **How Trading Works**

Every CLOB market is built from a Conditional Tokens structure.

For a binary market:

* YES pays `1.00` if YES wins and `0.00` if YES loses.
* NO pays `1.00` if NO wins and `0.00` if NO loses.

Users trade these tokens through the order book.

There are two main ways to participate:

1. **Trade existing liquidity**
   * Buy outcome tokens from sellers.
   * Sell outcome tokens you already hold.
2. **Create inventory**
   * Mint a complete set of outcomes.
   * Sell the side you do not want.
   * Keep the side you want as your directional position.

This means positions are tradable before resolution. Axiom is no longer limited to locked bets in a prize pool.

***

### **Order Book Basics**

The order book shows all resting demand and supply for an outcome.

Key terms:

* **Bid**: highest price a buyer will pay
* **Ask**: lowest price a seller will accept
* **Spread**: difference between best bid and best ask
* **Depth**: how much size is available at each price level
* **Maker**: resting order that adds liquidity
* **Taker**: incoming order that removes liquidity

Orders match using **price-time priority**:

1. Better prices match first.
2. If prices are tied, earlier orders match first.

***

### **What Happens Onchain vs Offchain**

The matching engine runs offchain for speed, but settlement remains onchain.

* Offchain services maintain the live order book and match signed orders.
* `AxiomCTFExchange` settles matched trades atomically onchain.
* `AxiomConditionalTokens` holds the ERC-1155 outcome positions.
* `AxiomCTFMarket` resolves the condition when governance finalizes the result.

This gives users low-latency trading without sacrificing an onchain source of truth for final fills.

***

### **Complete Sets and Redemption**

Conditional Tokens markets have one important property:

If you hold one share of every outcome, you hold a **complete set** worth full collateral value.

That enables:

* minting complete sets when you want to create inventory
* merging full sets back into collateral when appropriate
* redeeming winning positions after resolution

After the market resolves:

1. The winning outcome is reported onchain.
2. Winning tokens become redeemable for collateral.
3. Users redeem their positions and receive the corresponding payout.

***

### **Trading Fees**

CLOB markets charge fees on settled trades, not on redemption.

The current live fee model is:

* `0.50%` to the dev treasury
* `0.25%` to the staker fee recipient
* `0.25%` to the incentives recipient

Total protocol trade fee: `1.00%`

The fee is enforced during onchain settlement through `AxiomCTFExchange`.

***

### **What Users See in the Interface**

Axiom’s trading UI now centers on real market structure rather than pool math.

Users see:

* best bid and ask
* spread
* order book depth
* last trade price
* recent fills
* open orders
* current positions by outcome

Example:

```
XRP > $3.00 by Friday?

Best bid: 0.41
Best ask: 0.43
Spread: 0.02

Your order: Buy YES @ 0.42
Status: Resting on the book
If filled: You become the taker only if you cross the ask.
If someone sells into your order: You are the maker.
```

***

### **Resolution and Settlement**

Once the event occurs:

1. A top 50 percent staker submits the first proposal.
2. If unchallenged, the market auto-resolves.
3. If challenged, a vote is triggered.
4. Once finalized, the winning outcome is recorded onchain.
5. Users redeem winning tokens for the settlement asset.

Governance rewards and penalties are applied through Axiom Prime, while trading positions settle through the CLOB and Conditional Tokens market stack.


# Staking and Yield

Axiom Prime is the economic engine of the protocol. It is where users stake their assets, earn yield, and gain governance power. The same capital that earns yield is also the capital that protects the integrity of Axiom’s prediction markets.

Axiom Prime is designed to be simple to use for normal users, while the underlying mechanics remain deeply robust and secure.

***

### Bootstrap Phase: Axiom Points

Solving the cold start with active trading and useful liquidity

During the initial Bootstrap Mode, passive staking in Axiom Prime is temporarily de-emphasized in favor of a live incentives program tied to CLOB trading activity.

Instead of rewarding raw deposits alone, the bootstrap system rewards the market behavior that makes an exchange usable:

* settled fills
* maker liquidity
* taker activity
* referrals that bring real traders

### **How Axiom Points Work Today**

The system operates on 7-day epochs. Users accumulate Axiom Points based on settled CLOB fills.

Live rules:

* Base rate: `$1` of executed USD notional = `100` base points
* Maker fills: `1.5x`
* Taker fills: `1.0x`
* Referral bonus: `10%` of the referee's `basePoints`

Formula:

```
basePoints = floor(100 * fillUsdNotional)
makerPoints = floor(basePoints * 1.5)
takerPoints = basePoints
referralPoints = floor(basePoints * 0.1)
```

Important constraints:

* points come from settled CLOB fills
* order placement alone does not earn points
* cancellations do not earn points
* idle inventory does not earn points
* offchain activity that never settles onchain does not earn points

### **Yield Distribution During Bootstrap**

At the end of each epoch, bootstrap rewards are distributed proportionally to each user's share of total points.

This keeps the incentives program simple while aligning rewards with the trading activity that actually improves market quality.

{% hint style="info" %}
In practice, the maker multiplier is the key bootstrap incentive because it rewards users who post executable liquidity rather than just consuming it.
{% endhint %}

***

### **Transition to Staking Yield**

As the protocol matures, more of the economic flow shifts toward long-term staker yield.

Post-bootstrap:

1. Axiom Prime becomes the primary passive yield path.
2. Staker fees from protocol activity route to the configured staker fee recipient.
3. Governance penalties continue to reward honest participation.

The exact incentives mix can evolve, but the core principle does not change: protocol activity should fund users who help the system function.

***

### **What Axiom Prime Does**

[Axiom Prime](/protocol-design/axiom-prime) serves three purposes:

1. **Yield**\
   Stakers earn yield from market activity and penalties. Yield is not inflationary and does not come from emissions or external DeFi strategies.
2. **Governance Power**\
   Stakers gain percentile-based governance rights. The top 50 percent by USD stake can create markets, propose outcomes, challenge incorrect proposals, and vote in initial resolution rounds.
3. **Resolution Security**\
   Axiom Prime determines who is eligible to resolve markets and how much weight their votes carry.

This creates a system where the economic foundation is tied directly to the accuracy of truth on the platform.

***

### **Staking and Share Tokens**

Users stake XRP into the XRP vault and receive non-transferable share tokens (aXRP). These tokens:

* represent their claim on the vault
* automatically increase in value as yield accrues
* determine their governance weight
* cannot be sold, transferred, or delegated

The [share token structure](/protocol-design/axiom-prime/vault-mechanics) is based on the standard ERC-4626 pattern, ensuring fairness, gas efficiency, and security.

When more stablecoin liquidity becomes available on the XRPL EVM Sidechain, additional vaults can be added, but during bootstrap only the XRP vault is active.

{% hint style="info" %}
Tokens deposited in vaults are not farmed through external strategies. They exist to secure governance and receive protocol-native yield.
{% endhint %}

***

### **How Yield Accrues**

Yield is added to the vaults automatically as fees flow into the system.

When fees enter a vault:

1. Total assets increase
2. Share count stays the same
3. The share price rises
4. Stakers’ positions automatically grow in value

Withdrawals redeem shares at the current higher price.

***

### **Where Yield Comes From**

Yield flows into Axiom Prime from:

* staker-directed protocol fees
* penalties from incorrect proposers and voters
* optional future protocol revenue streams

There are no emissions and no incentive tokens.

This yield source is organic, real, and directly tied to market activity.

***

### **Percentile Snapshots**

Axiom uses a [snapshot system](/protocol-design/axiom-prime/staking-snapshots) to determine eligibility for governance actions.

Every epoch, the protocol:

* calculates each staker’s USD stake
* sorts all stakers
* defines the top 50 percent
* stores this snapshot immutably

Percentiles determine:

* who may create markets
* who may propose resolutions
* who may challenge proposals
* who may vote in the initial voting phase

Snapshots are essential for security and for preventing last-minute stake manipulation.

***

### **Why Axiom Prime Matters**

Axiom Prime provides:

* the yield that makes staking meaningful
* the governance weight that makes resolution decentralized
* the penalty model that enforces honesty
* the snapshot system that keeps power fair
* the capital base that ensures truth remains economically protected

Without Axiom Prime, the prediction market layer cannot be decentralized or secure. Prime is the foundation of Axiom’s truth economy.


# Axiom Governance

Axiom governance is the system that determines the truth for every prediction market. It replaces oracles, trusted committees, and moderators with a fully decentralized, stake-weighted process. The core principle is simple. The people with the most economic exposure have the strongest incentive to resolve markets honestly.

Axiom Governance is built on three pillars:

1. **Optimistic resolution**
2. **Challenge and voting**
3. **Stake-based penalties and rewards**

Together these create a high-speed, high-integrity resolution system that works at scale.

***

### **The Resolution Lifecycle**

Every market follows the same resolution flow:

1. **Event ends**
2. **A top 50 percent staker submits the first proposal**
3. **Challenge window opens**
4. If unchallenged, the proposal auto-finalizes
5. If challenged, voting begins
6. If voting fails to reach consensus, the market escalates to all stakers
7. Once finalized, payouts and penalties are applied

This process combines speed, decentralization, and economic accountability.

***

### **Optimistic Resolution (First Come, First Served)**

Axiom uses an optimistic model for efficiency. As soon as the event outcome is known, the first eligible staker in the top 50 percent can submit a proposal. They must include:

* The proposed outcome
* Evidence sources
* Proof the event occurred as described

Once submitted, the proposal enters a challenge window (default: 6 hours).

**If no one challenges it, the proposal is automatically accepted**.

The proposer receives a **fixed consensus bonus** for submitting a correct and unchallenged resolution (default: 10 USD equivalent in the settlement asset)

Optimistic resolution ensures that most markets resolve quickly without needing a vote.

***

### **Challenge and Initial Voting (Top 50% of Stakers)**

If another top 50 percent staker believes the proposal is incorrect, they can submit a challenge with an alternative outcome. This triggers a [governance vote](/protocol-design/axiom-theorem/escalation-mechanics).

Voting rules:

* Only top 50 percent stakers from the locked resolution epoch may vote
* Vote weight equals USD stake value
* Voting window is 24 hours
* A proposal must:
  * Reach quorum (minimum 10 percent of eligible stake)
  * Achieve a supermajority (>66.7 percent)

If the proposal passes, the market finalizes.

If the proposal fails or the vote becomes contentious, escalation begins.

The [Protocol Design](/protocol-design/introduction) defines these thresholds clearly.

***

### **Escalation to All Stakers**

Escalation occurs when:

* No proposal reaches the 66.7 percent threshold
* Quorum is not met
* The vote is split enough to be considered contentious

In this phase:

* **All Axiom Prime stakers** become eligible voters
* Weight is still based on USD stake
* The same quorum and supermajority rules apply
* If quorum is not reached, the vote auto-extends by 24 hours

Escalation is rare. Its purpose is to handle controversial or unclear outcomes where a wider consensus is needed.

If escalation still fails to produce a clear result, the market resolves as **Invalid** and all traders receive refunds.

***

### **Penalties and Rewards**

Axiom uses [penalties and rewards](#penalties-and-rewards) instead of bonds. This creates a clean, self-contained incentive system rooted in staked value.

#### **Penalties**

Applied at market finalization:

* Incorrect proposers lose 0.20 percent of their USD stake
* Incorrect voters lose 0.10 percent
* These penalties are applied by burning share tokens from their vault position

#### **Rewards**

Penalties form a reward pool, which is distributed:

* 60 percent to the correct proposer or correct challenger
* 40 percent to correct voters, proportional to their stake

If the market resolved optimistically (unchallenged):

* No penalty pool exists
* The proposer receives the fixed consensus bonus
* The market creator receives a 0.15 percent quality bonus from the market pool

***

### **Why Axiom Governance Works**

Axiom’s governance model is designed to be:

#### **Fast**

Optimistic resolutions settle in hours, not days.

#### **Decentralized**

No oracles, no committees, no vote-buying, no governance tokens.

#### **Economically aligned**

Dishonest actors are penalized. Honest actors earn more stake.

#### **Sybil-resistant**

Splitting stake across multiple addresses gives no advantage.

#### **Attack-resistant**

To manipulate a market, an attacker would need to control a majority of protocol stake. This is economically irrational and self-defeating.

#### **Scalable**

Optimistic resolution covers most cases, while voting handles edge cases.

#### **Transparent**

Evidence is permanently linked onchain. All votes and penalties are publicly visible.

Axiom governance transforms market resolution into a truth-finding game with real incentives and real accountability.


# Architecture Overview

Breakdown of the underlying smart contracts

This section provides a high-level look at how the Axiom Protocol is architected under the hood. For a more in-depth explanation, please see the [Protocol Design](/protocol-design/introduction).

Axiom is built from two major systems:

1. **Axiom Prime** (staking, yield, governance)
2. **Axiom Theorem** (market creation, trading, and resolution)

These systems communicate with each other through smart contracts deployed on the XRPL EVM Sidechain. Together they form a unified engine where capital powers truth, and truth powers yield.

{% content-ref url="/pages/i0rmyTiZyr6SoF0FptHO" %}
[Smart Contract Architecture](/whitepaper/architecture-overview/smart-contract-architecture)
{% endcontent-ref %}

{% content-ref url="/pages/bwArSrY5jVFeLEG8Jywz" %}
[Staking Architecture](/whitepaper/architecture-overview/staking-architecture)
{% endcontent-ref %}

{% content-ref url="/pages/rA4oEaP0JvE3niePQGga" %}
[Market Architecture](/whitepaper/architecture-overview/market-architecture)
{% endcontent-ref %}

{% content-ref url="/pages/0S9oOYuv4o9PzY5FwDMp" %}
[Resolution Architecture](/whitepaper/architecture-overview/resolution-architecture)
{% endcontent-ref %}

{% content-ref url="/pages/0rgUyXXGb3KWjGVerHyy" %}
[Economic Flywheel](/whitepaper/architecture-overview/economic-flywheel)
{% endcontent-ref %}

{% content-ref url="/pages/yxGGDKiIPGOh59cvRlC2" %}
[Bootstrap Architecture](/whitepaper/architecture-overview/bootstrap-architecture)
{% endcontent-ref %}


# Smart Contract Architecture

Axiom is composed of several smart contracts, each with a clear and isolated role. This modular design makes the system more secure, more upgradeable, and easier to reason about.

***

#### **Vaults (XRPVault and future stablecoin vaults)**

Responsible for:

* Accepting deposits
* Minting non-transferable share tokens (aXRP)
* Burning shares on withdrawal
* Increasing share price as yield accrues
* Enforcing resolution locks

The vaults follow a modified ERC-4626 pattern for predictable, fair accounting.

***

#### **Eligibility Registry**

Responsible for:

* Snapshotting staker USD values
* Sorting stakers by percentile
* Defining the top 50 percent
* Providing Merkle proofs for eligibility
* Supporting fraud proofs during decentralized operation

The system uses an optimistic off-chain Merkle snapshot model with on-chain verification if challenged.

***

#### **MarketFactory**

Responsible for:

* Creating new markets
* Verifying top 50 percent eligibility post-bootstrap
* Deploying market implementations
* Managing implementation registration over time

The MarketFactory is upgradeable so the protocol can keep evolving while preserving a stable creation interface.

***

#### **AxiomConditionalTokens**

Responsible for:

* Representing outcome positions as ERC-1155 tokens
* Splitting collateral into complete sets
* Merging complete sets back into collateral
* Redeeming resolved winning positions

This is the core positions primitive behind Axiom’s CLOB markets.

***

#### **AxiomCTFMarket**

Responsible for:

* Preparing each market condition
* Storing market-level metadata and configuration
* Acting as the oracle for resolution
* Reporting payouts to Conditional Tokens
* Exposing market-scoped redemption helpers

This contract connects the prediction market question to the tokenized outcome positions.

***

#### **AxiomCTFExchange**

Responsible for:

* Verifying signed orders
* Tracking partial fills and cancellations
* Settling matched trades atomically onchain
* Moving collateral and ERC-1155 outcome tokens safely
* Charging CLOB protocol fees during settlement

This is the onchain settlement engine for Axiom’s order-book trading.

***

#### **FeeRouter and Rewards Infrastructure**

Responsible for:

* Routing staker fees to the correct recipient
* Funding rewards and vault yield flows
* Supporting bootstrap incentives and post-bootstrap yield distribution

The fee path differs between bootstrap and post-bootstrap states, but the design goal stays the same: market activity should fund protocol incentives and staker yield.


# Staking Architecture

Axiom uses a share-based staking model identical to established [DeFi vaults](/protocol-design/axiom-prime/vault-mechanics).

When a user deposits XRP into the vault:

* They receive aXRP based on the current share price
* Their governance weight increases accordingly
* Their position grows over time as the share price rises
* Their XRP never leaves the vault

The vault manages:

* Total underlying assets
* Total share tokens
* Share price calculation
* Deposit and withdrawal logic
* Resolution lock enforcement

This model preserves fairness, supports large numbers of stakers, and keeps gas costs low.


# Market Architecture

Axiom’s markets use a CLOB backed by Conditional Tokens.

Each market stack includes:

* a logical market definition shown in the app
* one or more binary `AxiomCTFMarket` contracts underneath
* ERC-1155 outcome positions in `AxiomConditionalTokens`
* an order book managed offchain
* onchain settlement through `AxiomCTFExchange`

For users, this means one market page can represent a clean product experience even when multiple binary contracts sit behind the scenes.

At resolution, the market contract:

* receives the finalized outcome
* reports payouts to Conditional Tokens
* enables winning position redemption

The exchange handles trade settlement and fees before that point. Redemption is the final conversion of winning tokens back into collateral.

This design keeps Axiom auditable and composable while supporting deeper liquidity and more flexible position management than a pool-based market model.


# Resolution Architecture

Resolution is handled through the MarketResolver contract, which coordinates:

* Proposal submission
* Challenge periods
* Voting
* Escalation logic
* Penalties and rewards
* Finalization

Stake-based penalties and rewards are applied by minting or burning share tokens in Axiom Prime vaults rather than moving underlying assets. This maintains vault integrity while enforcing accountability.

The system uses **dual epoch locking**:

* Creation epoch
* Resolution epoch

This ensures voters are fresh, currently staked, and unable to avoid penalties by withdrawing mid-process.


# Economic Flywheel

Axiom is built to create a self-sustaining loop between truth, capital, and yield.

The flywheel operates as follows:

1. **Markets create trading volume**
2. **Trading generates commissions**
3. **Commissions flow into the Axiom Prime vaults**
4. **Yield increases share prices**
5. **Higher yield attracts more stake**
6. **More stake increases governance security**
7. **Higher security creates more trust in market accuracy**
8. **More trust increases trading volume**
9. **The cycle repeats**

Bootstrap incentives such as Axiom Points and proposer consensus bonuses accelerate early phases of this loop


# Bootstrap Architecture

Until the protocol fully decentralizes, a [**Bootstrap Authority**](/protocol-design/bootstrap-launch-mechanism) contract allows whitelisted signers to:

* Create markets
* Submit proposals
* Whitelist settlement assets
* Add future vaults
* Maintain protocol continuity

This authority is:

* Restricted by rate limits
* Fully transparent through events
* Removable by a 3 signer vote
* Automatically disabled after 12 months

Bootstrap mode is temporary and exists solely to safely activate the protocol before staker participation becomes sufficient for full decentralization.


# Bootstrap Phase

Why bootstrap exists, signer permissions, and expiry rules

Axiom does not launch as a fully decentralized protocol on day one. Instead, it begins in a temporary [**bootstrap phase**](/protocol-design/bootstrap-launch-mechanism) designed to safely bring the system online, seed early markets, ensure reliable resolutions, and allow the platform to build momentum before governance is opened to stakers.

This section explains why the bootstrap phase exists, how it works, what its limits are, and how it eventually ends.

{% content-ref url="/pages/0SopJzMptBtXSRhfsRuh" %}
[Why Bootstrap Mode Exists](/whitepaper/bootstrap-phase/why-bootstrap-mode-exists)
{% endcontent-ref %}

{% content-ref url="/pages/0IOCOUKtZVnznyJ29yBT" %}
[Who Runs Bootstrap Mode](/whitepaper/bootstrap-phase/who-runs-bootstrap-mode)
{% endcontent-ref %}

{% content-ref url="/pages/L86KPW57kD1JKnChrwEF" %}
[What Bootstrap Signers Can Do](/whitepaper/bootstrap-phase/what-bootstrap-signers-can-do)
{% endcontent-ref %}

{% content-ref url="/pages/m95bn6HIyGcEGrPEvwIs" %}
[Rate Limits and Transparency](/whitepaper/bootstrap-phase/rate-limits-and-transparency)
{% endcontent-ref %}

{% content-ref url="/pages/2KzYqJlsIb0pHxjoGQDz" %}
[Bootstrap Market Strategy](/whitepaper/bootstrap-phase/bootstrap-market-strategy)
{% endcontent-ref %}

{% content-ref url="/pages/q2QqElHjkLQRgJtZVD2s" %}
[How Bootstrap Mode Ends](/whitepaper/bootstrap-phase/how-bootstrap-mode-ends)
{% endcontent-ref %}


# Why Bootstrap Mode Exists

Axiom’s governance model relies on:

* A large base of stakers
* Stable snapshot data
* Active participation from top 50 percent stakers
* Fresh resolution voters
* Distributed proposer activity

At launch, none of this exists. There are:

* No stakers
* No one in the top 50 percent
* No one eligible to create markets
* No one eligible to resolve outcomes
* No governance infrastructure operating at scale

This creates the classic **cold start** problem. Without governance, there are no markets. Without markets, there is no yield. Without yield, there is no incentive to stake.

Bootstrap mode solves this by temporarily allowing a controlled, transparent group to create markets and resolve outcomes until organic participation is large enough.


# Who Runs Bootstrap Mode

The protocol includes a designated [**Bootstrap Authority**](/protocol-design/bootstrap-launch-mechanism/multi-signer-bootstrap-authority), a whitelisted council of multiple independent signers distributed globally. These signers:

* Create markets
* Submit outcomes
* Finalize resolutions
* Whitelist settlement assets
* Add governance vaults as liquidity becomes available

All actions are on-chain and publicly visible. The design intentionally avoids a single multisig. Instead, each bootstrap signer has independent authority, with strict rate limits and global coverage.

This allows Axiom to operate continuously during the early phase.


# What Bootstrap Signers Can Do

Bootstrap signers have restricted powers designed only for early network activation:

#### **They can:**

* Create markets without being in the top 50 percent
* Submit proposals without meeting governance eligibility
* Ensure events resolve accurately
* Add additional settlement assets (when liquidity appears)
* Add new governance vaults (like stablecoins) during bootstrap
* Maintain the protocol if unexpected conditions arise

#### **They cannot:**

* Change contracts
* Modify core parameters beyond allowed ranges
* Remove other signers (requires a multi-party vote)
* Disable penalties
* Disable commissions
* Remove the time-based snapshot system
* Alter governance thresholds

This ensures their role is limited to operational continuity rather than directional control.


# Rate Limits and Transparency

To prevent abuse, the protocol enforces strict daily limits:

* Maximum 5 markets per signer per day
* Maximum 10 proposals per signer per day

Every bootstrap action emits a public on-chain event such as:

```
BootstrapMarketCreated
BootstrapProposalSubmitted
```

Front-end interfaces will clearly mark which markets and resolutions were created by bootstrap signers.

This ensures full community visibility.


# Bootstrap Market Strategy

During the first weeks:

1. The bootstrap council seeds high-quality markets across:
   * XRP predictions
   * Global politics
   * Crypto and macroeconomics
   * Sports
2. They demonstrate:
   * market creation
   * order book trading
   * maker and taker activity
   * fills and settlement
   * optimistic resolutions
   * challenged resolutions
   * penalty and reward distribution
   * Axiom Points flowing from settled CLOB activity

### Axiom Points Rewards

During the bootstrap phase, protocol incentives flow into a rewards system for active traders.

**Technical implementation:**

* **Distribution:** rewards are distributed by epoch based on points earned from settled CLOB fills
* **Claim mechanism:** claims are executed on-chain via the `AxiomRewards` contract
* **Verification:** eligibility is verified using off-chain computed Merkle proofs

This gives users a complete view of the live CLOB system while organic activity builds.


# How Bootstrap Mode Ends

Bootstrap mode ends in one of two ways, whichever happens first.

#### **1. Voluntary Deactivation by Bootstrap Signers**

Any 3 bootstrap signers can collectively vote to deactivate bootstrap mode. This occurs when:

* There is sufficient organic trading volume
* The top 50 percent set has stabilized
* Staker participation is high
* Markets are being created and resolved by users
* Governance participation is healthy

Because signers are globally distributed and independent, this requires a multi-party decision, not unilateral control.

#### **2. Automatic Expiry**

Bootstrap mode automatically terminates **12 months after deployment**. This is enforced by the protocol and cannot be extended.

Once bootstrap ends:

* Market creation is fully permissionless for top 50 percent stakers
* Outcome governance transitions to fully decentralized mode
* Bootstrap signers lose all special privileges

Axiom becomes a fully decentralized system.


# Why Axiom Is Unique

The most decentralized prediction market, powered by XRP

Axiom is not just another prediction market. It is the first system designed specifically around the assets, culture, and expectations of XRP holders while also delivering a deeply decentralized, economically secure protocol.

Here is what sets Axiom apart.

{% content-ref url="/pages/FEP5QiXlQrFpUTd2E4IX" %}
[Built for XRP and RLUSD Holders](/whitepaper/why-axiom-is-unique/built-for-xrp-and-rlusd-holders)
{% endcontent-ref %}

{% content-ref url="/pages/Kh7iGv33aHwEIFpNEkah" %}
[Unique Markets](/whitepaper/why-axiom-is-unique/unique-markets)
{% endcontent-ref %}

{% content-ref url="/pages/9dnYZcukb0my5v1S4jOK" %}
[No Token, No Emissions, No Gimmicks](/whitepaper/why-axiom-is-unique/no-token-no-emissions-no-gimmicks)
{% endcontent-ref %}

{% content-ref url="/pages/HTzBBXuedKNHANnEltXB" %}
[Truly Decentralized Resolution](/whitepaper/why-axiom-is-unique/truly-decentralized-resolution)
{% endcontent-ref %}


# Built for XRP and RLUSD Holders

Many platforms require new tokens, point systems, or complex onboarding. Axiom does not. Users simply bring the assets they already hold: XRP and, when liquidity permits, RLUSD and other major stablecoins.

* No learning curve
* No new token
* No speculative governance token
* No liquidity fragmentation

This is one of Axiom’s strongest differentiators


# Unique Markets

Axiom is built around the real discussions that define the XRP community:

* XRP price targets
* Ripple timelines
* XRPL changes
* RLUSD supply milestones
* Ripple IPO speculation
* XRP ETF predictions

These are markets that Polymarket, Kalshi, and similar platforms do not list.

Axiom speaks the language of the XRP ecosystem

***

Although Axiom is optimized for XRP holders, it also hosts:

* Global political markets
* Cryptocurrency and macro markets
* Sports and entertainment markets
* Technology and economic events

This ensures broad appeal without losing its XRP-first identity.


# No Token, No Emissions, No Gimmicks

Axiom deliberately avoids the typical playbook of:

* Native governance tokens
* Emission farming
* Inflationary rewards
* LP tokens
* Complex DeFi systems

Everything is powered by **real economic activity**, not token incentives.

Yield comes from:

* Market commissions
* Penalties applied to dishonest actors

This keeps Axiom clean, credible, and aligned with how XRP holders think.


# Truly Decentralized Resolution

Axiom replaces oracles with stake-weighted truth:

* Top 50 percent stakers propose and challenge outcomes
* Voting is based solely on economic weight
* Incorrect actors are penalized
* Honest actors are rewarded
* Escalation allows full protocol governance if needed

This achieves decentralization without governance tokens or centralized committees.

***

### **Stake Penalties Make Dishonesty Irrational**

If a proposer or voter behaves dishonestly:

* They lose part of their staked value
* That value is redistributed to honest participants

Dishonesty has a direct financial cost. Accuracy is profitable.

This creates a self-policing ecosystem.

***

### **Permissionless After Bootstrap Mode**

Axiom begins in a protected bootstrap phase, but once it ends:

* Any eligible staker can create markets
* Any eligible staker can resolve outcomes
* All resolution is governed by stake-weighted consensus
* The bootstrap council loses all authority automatically
* The protocol becomes fully decentralized

Users gain complete control over the future of Axiom.


# Example Markets

XRP-specific, crypto, global, sports, tech

Axiom supports a wide range of markets. Some will be driven by the XRP community’s unique speculation culture, while others reflect global events, crypto trends, sports, and macroeconomic narratives. The examples below represent the kinds of markets users will see on the platform.

All markets use the same core CLOB and Conditional Tokens trading stack and resolve through Axiom’s decentralized governance process once bootstrap mode ends.

***

### **XRP and Ripple Specific Markets**

These are the markets that no other prediction platform offers. They speak directly to the conversations XRP holders are already having every day.

Examples:

* Will Ripple IPO in 2026?
* Will XRP reach $4 by the end of 2025?
* Will RLUSD supply exceed $5 billion by year-end?
* Who will be the next to publicly announce an XRP ETF?
* Will another XRP ETF launch in 2025?
* Will XRPL Batch Transactions go live in 2026?

These markets are central to Axiom’s identity and are a major driver of user adoption.

***

### **Crypto Ecosystem Markets**

Axiom also provides markets beyond XRP, including broader crypto trends and multichain narratives.

Examples:

* Will BTC hit $150,000 in 2026?
* Will ETH ETFs surpass BTC ETF volume this year?
* Will Solana flip Ethereum in TVL in 2026?
* Will a spot ETF for another L1 be approved this year?
* Will the total crypto market cap exceed $5 trillion by year-end?

These markets ensure Axiom appeals to a wider audience while still keeping XRP-specific markets front and center.

***

### **Global Prediction Markets**

Axiom supports traditional event markets that appeal to a mainstream audience.

Examples:

* Who will win the 2026 US Midterm Elections?
* Will the Federal Reserve cut rates at the next meeting?
* Will UK inflation fall below 2 percent by Q1 2026?
* Will Apple release a new VR headset before 2027?
* Will global oil prices exceed $120 per barrel in 2026?

These markets drive high-volume trading and attract users who may be new to XRP or crypto entirely.

***

### **Sports Market Examples**

Sports are a strong category because they produce clear, recurring, high-attention events that fit well with order-book trading.

Examples:

* Who will win the 2025 NBA Finals?
* Will Manchester City win the Premier League?
* Who will win the Super Bowl?
* Who will win the 2026 FIFA World Cup?
* Will Australia win the next Cricket World Cup?
* Who will win the Ballon d'Or?

Sports markets help keep activity flowing during periods without major crypto or macro events.

***

### **Technology and Macro Markets**

Markets tied to economic, political, or technological developments broaden the appeal of Axiom.

Examples:

* Will AI GPU supply double by the end of 2026?
* Will unemployment in the US rise above 5 percent in 2026?
* Will gold exceed $4,200/oz in 2026?

These markets keep the platform relevant even outside the crypto cycle.

***

### **Community and Social Narrative Markets**

Axiom can list playful or socially-driven markets that reflect the culture of the internet and crypto communities.

Examples:

* Will any XRPL token reach $100m+ market cap before Q2 2026?
* Will GTA VI release in 2026?
* Will global average temperature set a new record high in 2026?

These markets help users engage with Axiom socially, not just financially.


# Security Model

Axiom employs a wide-variety of strategies to increase platform security

Axiom is designed around the principle that the most reliable form of security is economic alignment. Participants who hold the most value in the system are the ones who secure it. This eliminates the need for governance tokens, external oracles, or trusted committees.

The security model has four layers:

1. **Stake-weighted honesty**
2. **Sybil resistance**
3. **Snapshot-based fairness**
4. **Penalty and reward enforcement**

Each layer works together to create a system where dishonesty is economically irrational and accuracy is profitable.

{% content-ref url="/pages/tWQ1Odv1cINcQcRrb9ZF" %}
[Stake-Weighted Honesty](/whitepaper/security-model/stake-weighted-honesty)
{% endcontent-ref %}

{% content-ref url="/pages/tczI4ZRfDHMkFJTmXcn0" %}
[Sybil Resistance](/whitepaper/security-model/sybil-resistance)
{% endcontent-ref %}

{% content-ref url="/pages/vBw2UiOCfFqAgZIa5kvV" %}
[Snapshot Fairness](/whitepaper/security-model/snapshot-fairness)
{% endcontent-ref %}

{% content-ref url="/pages/W21LvP1hDFQaKFTGtnfx" %}
[Penalty Enforcement](/whitepaper/security-model/penalty-enforcement)
{% endcontent-ref %}

{% content-ref url="/pages/2IsBWZsbVsLtkKuLCmRE" %}
[Collusion Resistance](/whitepaper/security-model/collusion-resistance)
{% endcontent-ref %}

{% content-ref url="/pages/Mmrir42tdHoNKdJIDjjQ" %}
[Dual Epoch Locking](/whitepaper/security-model/dual-epoch-locking)
{% endcontent-ref %}

{% content-ref url="/pages/qt4RLg70Bkky5wWoAu9t" %}
[Attack Scenarios and Mitigations](/whitepaper/security-model/attack-scenarios-and-mitigations)
{% endcontent-ref %}


# Stake-Weighted Honesty

Axiom’s governance is determined entirely by staked USD value. This aligns incentives around truth.

* Proposers with high stake lose value if wrong
* Voters with high stake lose value if incorrect
* Dishonest behavior is punished through share burns
* Honest behavior is rewarded through share mints

This creates a simple equation:

```
Honesty > Dishonesty, at all times
```

Because the cost of being wrong is real, participants act truthfully by economic necessity.


# Sybil Resistance

Axiom is naturally resistant to Sybil attacks because:

* Governance power is based on USD stake, not address count
* Splitting funds across many addresses provides no benefit
* Share tokens cannot be transferred or borrowed
* Voting power cannot be purchased on secondary markets
* Flash loan attacks are impossible
* Percentile eligibility is based on total stake held by an identity, not the number of wallets

Breaking a single address into ten smaller addresses simply spreads the same stake across ten buckets. It does not increase influence.


# Snapshot Fairness

Axiom uses a snapshot system to ensure fairness and prevent manipulation.

* Every 24 hours, the Eligibility Registry takes a snapshot of all staker positions
* These snapshots determine who is in the top 50 percent
* Proposal and voting eligibility are locked to the **resolution epoch**, not the current moment
* Users cannot stake large amounts right before a vote
* Users cannot withdraw to avoid penalties
* All actions are tied to stake values at a fixed time

Snapshots use an optimistic offchain Merkle model with fraud proofs. This reduces gas costs while maintaining decentralization


# Penalty Enforcement

Penalties are the backbone of Axiom’s security system.

* Incorrect proposers lose 0.20 percent of their stake
* Incorrect voters lose 0.10 percent
* Idle voters may lose a small amount if governance enables that parameter later
* Penalty amounts are burned from their share balance
* Rewards are minted to correct participants

An attacker trying to manipulate a market would need to:

* Stake a massive amount
* Risk losing a portion of that stake
* Outperform the honest majority

This makes attacks economically irrational.


# Collusion Resistance

To manipulate a market by collusion, a group would need:

* More than 66.7 percent of all staked value

This is prohibitively expensive. Holding a majority of the entire protocol’s stake only to lose a portion through penalties or incorrect outcomes is self-defeating.

Even if colluders tried to force a false result:

* Other stakers could escalate the vote
* Penalty caps would enforce large losses
* Future yield would be damaged, harming their own large stake

Economic incentives push every large participant toward honesty.


# Dual Epoch Locking

Axiom’s creation epoch and resolution epoch design prevents users from:

* Entering the system right before resolution
* Voting dishonestly
* Exiting before penalties are applied

Once a user is involved in a proposal or a vote, they are temporarily locked. This ensures:

* Accountable participation
* Correct application of penalties
* No stake-hopping exploits
* No “drive-by voting” with temporary positions

This is an important part of the protocol’s integrity


# Attack Scenarios and Mitigations

#### **Price manipulation attacks**

Governance weight uses USD value derived from decentralized sources such as [BandChain](https://docs.bandchain.org/introduction/how-bandchain-works) and stablecoin DEX pricing.

#### **Flash loan governance attacks**

Impossible because share tokens cannot be transferred or borrowed.

#### **Whale takeovers**

Require an economically irrational amount of capital and expose the attacker to large penalties.

#### **Resolution withholding**

Proposer slots are first come, first served. If no proposer submits a resolution, someone else will.

#### **Spam markets or spam proposals**

Rate limits and eligibility prevent this.

#### **Sybil farming**

No benefit, as power is not based on address count.

#### **Incorrect evidence**

Challenges and votes resolve this, and incorrect actors lose stake.

{% hint style="info" %}
Every major attack vector is neutralized by economic alignment or protocol rules.
{% endhint %}


# XRPL EVM Sidechain Infrastructure

XRP-native, smart contract functionality, fast, low cost

Axiom is deployed entirely on the **XRPL EVM Sidechain**, a specialized environment that combines the functionality of EVM smart contracts with the liquidity and speed of the XRP ecosystem. This infrastructure gives Axiom the reliability and performance needed to support a global prediction market while remaining simple for users.

Users do not need to understand the underlying technology. Deposits, withdrawals, and trading feel native. The XRPL EVM Sidechain is simply the foundation that makes the experience fast, cheap, decentralized and secure.

For AI agents, Axiom CLI is the recommended interface. It provides a more consistent and ergonomic way to interact with the protocol while preserving the permissionless ability to interact with smart contracts directly.

{% content-ref url="/pages/E36HYhCml9MHCfNtyfDe" %}
[Why XRPL EVM Sidechain](/whitepaper/xrpl-evm-sidechain-infrastructure/why-xrpl-evm-sidechain)
{% endcontent-ref %}

{% content-ref url="/pages/VssSJm1SxiGrU6SoFmZD" %}
[How Users Interact with the Sidechain](/whitepaper/xrpl-evm-sidechain-infrastructure/how-users-interact-with-the-sidechain)
{% endcontent-ref %}

{% content-ref url="/pages/DszHg0Rk725yeDPvJFbf" %}
[Axiom CLI for AI Agents](/whitepaper/xrpl-evm-sidechain-infrastructure/axiom-cli-for-ai-agents)
{% endcontent-ref %}

{% content-ref url="/pages/ufVwF4nzyY6LtBSQ6lqZ" %}
[Assets on the XRPL EVM Sidechain](/whitepaper/xrpl-evm-sidechain-infrastructure/assets-on-the-xrpl-evm-sidechain)
{% endcontent-ref %}


# Why XRPL EVM Sidechain

Axiom uses the XRPL EVM Sidechain because it provides a unique combination of advantages:

#### **Native XRP Liquidity**

Axiom is built for XRP holders, and the sidechain gives direct access to XRP as a base settlement asset. This allows users to trade using the asset they already hold without friction.

***

#### **Low Transaction Costs**

Prediction markets require frequent transactions. The sidechain’s low cost structure allows:

* Market creation
* Odds updates
* Governance votes
* Penalty and reward execution
* Snapshot updates

All to happen affordably.

***

#### **Fast Block Times**

The speed of the sidechain ensures responsive user experience, especially when:

* Markets are closing
* Time bonuses update
* Proposals are submitted
* Challenges occur
* Stakes are locked for resolution

***

#### **EVM Compatibility**

Axiom is written in Solidity and uses standard EVM patterns such as:

* Upgradeable proxies
* ERC-4626 style vaults
* Merkle proofs
* Offchain computation with fraud proofs

This makes the protocol interoperable with existing Ethereum tooling, easier to audit, and familiar for developers.


# How Users Interact with the Sidechain

Axiom abstracts away most of the complexity of bridging and sidechain mechanics, but there are several valid ways to interact with the protocol.

Most human users will simply:

1. Deposit XRP (or RLUSD, when available) from the XRPL mainnet, a CEX or another enabled sidechain
2. Trade in markets
3. Withdraw their assets

For AI agents, **Axiom CLI** is the recommended interface. It provides a more consistent and ergonomic workflow and can expose richer protocol data than direct contract calls alone.

At the same time, Axiom is a decentralized protocol built on smart contracts. Nobody can prevent users or agents from interacting with supported permissionless contract functions directly on the XRPL EVM Sidechain.

Behind the scenes, the protocol handles:

* Bridging with the sidechain
* Gas estimation
* Routing transactions
* Conversions between assets (if needed for vault distribution)
* Payout steps at settlement

Direct contract interaction remains valid, but it can be less convenient and may expose less metadata, historical context, or backend-derived views than the CLI.

The user experience is kept clean and simple by design, whether someone arrives through the app, through Axiom CLI, or through direct onchain interaction.


# Axiom CLI for AI Agents

Axiom CLI is the recommended interface for AI agents.

The protocol itself is decentralized and lives on smart contracts deployed to the XRPL EVM Sidechain. That means nobody can stop users or agents from interacting with supported permissionless contract functions directly.

The CLI is recommended because it provides a more consistent and ergonomic workflow for agents. It also exposes a richer view of the protocol than raw contract calls alone, since it can combine onchain interaction with backend-backed reads for things like market discovery, metadata, outcome labels, profile views, unclaimed winnings, rewards state, and funding instructions.

In practice, this means:

* Human users will usually interact through the Axiom app
* AI agents should prefer Axiom CLI
* Direct smart contract interaction remains a valid fallback and a permissionless access path

The CLI is a convenience layer, not a gatekeeper. It does not make Axiom more centralized. It simply makes agent interaction more reliable, more ergonomic, and more consistent across common workflows.

AI agents should generally prefer the CLI for:

* wallet setup and registration
* market discovery
* reading market metadata and outcome labels
* quoting and buying predictions
* inspecting positions, profile data, and unclaimed winnings
* inspecting and claiming rewards
* claiming market winnings
* viewing funding instructions

Direct contract interaction is still allowed, but it may provide a narrower view of the protocol than the CLI, especially for metadata and backend-derived views.

Public Axiom CLI resources:

* Repository: [Gen3Games/axiom-cli](https://github.com/Gen3Games/axiom-cli)
* Releases: [Latest release](https://github.com/Gen3Games/axiom-cli/releases/latest)


# Assets on the XRPL EVM Sidechain

At launch:

* Axiom supports **XRP** as the primary settlement and staking asset
* Yield flows initially into the **XRPVault**

As liquidity grows on the XRPL EVM Sidechain:

* RLUSD can be added as a settlement option
* USDC, USDT, or other stablecoins may be added as governance-bearing vaults
* Protocol fee routing can support a broader multi-vault system

All of these actions occur under bootstrap authority initially, then transition to governance post-bootstrap.

***

### **Price Feeds and Oracles**

The XRPL EVM Sidechain supports decentralized price discovery through:

* [BandChain oracles](https://docs.bandchain.org/introduction/how-bandchain-works)
* XRP or USD-pegged stablecoin DEX pricing

Axiom uses these price sources to:

* calculate USD stake values for snapshots
* determine vault TVL
* support rewards and fee accounting
* maintain fair and transparent governance weight

The oracle system is decentralized and verifiable.

***

### **Integrated DEX Routing**

When multiple vaults are active, the protocol may need to:

* convert settlement asset commissions into XRP
* convert XRP into stablecoins
* route yield proportionally to each vault

Axiom uses integrated DEX steps where required to perform these swaps automatically as part of protocol fee routing.

Users do not interact with this process directly. Their yield simply accrues.

***

### **Scalable Infrastructure for Future Growth**

The XRPL EVM Sidechain allows Axiom to expand over time:

* deeper order-book markets
* automated templates
* cross-market arbitrage systems
* multi-vault staking
* advanced governance tooling
* SubDAO-based extensions

Because Axiom uses upgradeable infrastructure and lives in a full EVM environment, future upgrades can be introduced without disrupting the core protocol.


# Roadmap

The launch is just the start

Axiom is designed to evolve in phases. The protocol now centers on CLOB trading with Conditional Tokens, while decentralization, asset support, and market breadth continue to expand over time.

The roadmap is intentionally flexible. Axiom iterates based on real user behavior, trading activity, and governance participation.

***

### **Phase 1: Launch (CLOB Markets and Bootstrap Incentives)**

**Status: Initial Release**

This phase focuses on delivering a high-quality prediction market experience around the live CLOB stack.

Key features:

* CLOB prediction markets
* XRP-first settlement
* Conditional Tokens outcome positions
* Bootstrap council handling market creation and resolution
* Axiom Points funded from trading activity during bootstrap
* Public staking path for Axiom Prime as the protocol matures

Primary goals:

* Validate demand
* Establish trading volume and maker participation
* Build user trust
* Ensure stable operations
* Prove the CLOB and Conditional Tokens settlement path in production

***

### **Phase 2: End of Bootstrap Mode (Decentralization)**

**Timeline: Activated when the system is healthy or at 12 month expiry**

Bootstrap mode ends either when:

* Three independent bootstrap signers vote to disable it
* The twelve-month automatic expiry triggers

At this moment:

* Market creation becomes permissionless for top 50 percent stakers
* Outcome resolution becomes fully decentralized
* Bootstrap council privileges are permanently revoked
* Markets and governance actions become community driven

This is the transition into true decentralization.

***

### **Phase 3: Stablecoin Settlement Support**

**Status: Enabled when liquidity is available**

Once stablecoins like RLUSD, USDC, or USDT gain consistent liquidity on the XRPL EVM Sidechain:

* Markets may settle in stablecoins
* Governance may approve new vaults
* Axiom Prime begins supporting multi-asset staking
* Yield can be routed across more than one governance-bearing vault

Stablecoin settlement expands the protocol’s global appeal and deepens XRPL-native utility.

***

### **Phase 4: Market Depth, Tooling, and Automation**

Future upgrades focus on improving the CLOB ecosystem rather than replacing it.

Examples include:

* deeper market-maker tooling
* better analytics and execution surfaces
* automated market templates
* richer agent workflows through Axiom CLI
* cross-market liquidity intelligence and arbitrage infrastructure

The goal is not to abandon the current model. The goal is to make the live CLOB system broader, deeper, and easier to use.


# Use Cases

Retail traders, XRP holders, analysts, sports bettors and more

Axiom is a prediction market protocol designed to serve a wide variety of users and scenarios. Because it combines a clean trading interface with deep economic governance, Axiom can support financial, social, informational, and institutional use cases.

Below are the key ways people and organizations can use Axiom.

It can also support agent-driven workflows. For AI agents and automation, Axiom CLI is the recommended interface because it provides a more consistent and ergonomic way to interact with the protocol, while direct smart contract access remains available for supported permissionless flows.

***

### **For XRP Holders**

This is Axiom’s core audience. XRP holders are already highly speculative and constantly engaged in future-oriented discussions. Axiom gives them a way to turn those beliefs into real financial positions.

#### **Use cases:**

* Trade on Ripple and XRP ecosystem predictions
* Express price targets with real market prices
* Test theories about regulation, partnerships, or catalysts
* Move from “talking about outcomes on X” to “trading on outcomes on Axiom”
* Earn transparent yield by staking in Axiom Prime
* Participate in decentralized resolution and earn rewards

***

### **For Active Traders**

Crypto traders can use Axiom to:

* Hedge positions
* Speculate on high volatility events
* Trade short term narrative-driven markets
* Access unique markets not available elsewhere
* Earn incentives through market making, trading, and governance participation

For example, a trader long ETH could hedge a short term downside scenario by buying NO shares on an ETH price market on Axiom.

Axiom’s user-facing experience is simple, but the underlying market structure is a real order book with tradable positions and onchain settlement.

***

### **For Global Market Participants**

Axiom lists markets that appeal to a wide international audience:

* Elections
* Interest rate decisions
* Inflation data
* Economic forecasts
* Tech company announcements
* Geopolitical risks

This allows traders who do not follow XRP closely to still use the platform in a meaningful way.

***

### **For Sports Bettors**

Sports markets are a strong fit for Axiom because they combine familiar event-driven propositions with a more flexible trading model than traditional sportsbook or pool systems.

Benefits:

* users can trade before resolution if liquidity exists
* market makers can quote both sides of a proposition
* outcome tokens settle transparently onchain
* sports schedules create recurring, high-frequency trading opportunities

Common sports use cases:

* NBA, NFL, football, and global match markets
* tournament winners
* player awards and milestones

Sports markets also bring consistent trading volume between major macro events.

***

### **For Web3 Projects and Ecosystems**

Projects in the XRP ecosystem can use Axiom to:

* gauge community sentiment
* forecast adoption trends
* track expectations around upgrades
* create opt-in sentiment indexes
* leverage markets as an alternative to polling

Axiom markets can act as public dashboards revealing what people actually believe, backed by real capital instead of empty opinions.

***

### **For Analysts and Forecasters**

Axiom serves as a forecasting tool. Analysts can:

* create markets around key predictions
* demonstrate confidence publicly
* build track records through resolved outcome history
* use markets as a research supplement
* compare their views to aggregate market prices

Prediction markets often outperform polls and expert forecasts in accuracy. Axiom makes these insights accessible.

***

### **For Governance and Community Signaling**

Communities can use Axiom to:

* signal preferences around protocol upgrades
* track sentiment for ecosystem decisions
* run opt-in governance prediction markets
* forecast the probability of projects delivering roadmap milestones

This transforms “community sentiment” from vague speculation into quantifiable on-chain signals.

***

### **For Institutions and Enterprises**

Institutions that rely on forecasting can use Axiom as a decentralized information source:

* price policy or regulatory outcomes
* track probabilities of macro events
* monitor market sentiment around resource planning
* use markets for internal decision support

While Axiom is not designed exclusively for institutions, the infrastructure is capable of supporting them over time.

***

### **For Market Creators**

Once bootstrap mode ends, any top 50 percent staker can create new markets. This enables:

* on-demand market creation
* community-driven catalog expansion
* markets designed around XRP-native narratives or global events
* more specialized trading opportunities

Market creators help shape Axiom’s catalog and user experience, even though the trading model itself is standardized around the CLOB and Conditional Tokens stack.


# Risks and Disclaimers

Axiom is designed to be transparent, decentralized, and economically aligned, but like all on-chain systems it carries risks.

This section is not legal advice. It is an overview of technical and operational risks inherent to any permissionless protocol.

***

### **Market Risk**

Prediction markets involve uncertainty. Users may lose part or all of the assets they stake in market outcomes if their predictions are incorrect. Market outcomes are not guaranteed and depend on real world events.

Users should not trade with funds they cannot afford to lose.

***

### **Smart Contract Risk**

Axiom is built on audited smart contracts, but no contract is immune to vulnerabilities.

Possible risks include:

* Undiscovered bugs
* Unexpected interactions between contracts
* Third party attack vectors
* Implementation errors

The protocol includes upgrade paths during bootstrap to address critical issues quickly, but users must acknowledge the inherent risk of interacting with smart contracts.

***

### **Oracle and Price Feed Risk**

Snapshot calculations and vault TVL rely on:

* BandChain oracles
* On-chain XRP or USD-pegged stablecoin DEX pricing

While decentralized, these sources can experience outages or anomalies that may impact short term accuracy.

The protocol includes fallback logic and challengeable snapshots, but oracle data always introduces some degree of risk.

***

### **Governance and Voting Risk**

Axiom’s resolution system relies on stakers acting honestly. While misaligned behavior is penalized, governance risk still exists.

Risks include:

* Low voter turnout
* Collusion attempts
* Concentration of stake among a small group
* Incorrect or malicious proposals
* Biased interpretation of evidence

The escalation system is designed to mitigate these risks, but they cannot be entirely eliminated.

***

### **Liquidity and Participation Risk**

Yield in Axiom Prime depends on:

* Market volume
* Trading activity
* Number of resolved markets
* Penalties applied to governance participants

If participation drops, yield may decrease. Vault share prices rise only when commissions and penalties flow into the system.

Users should not assume a specific yield rate.

***

### **Stablecoin and Asset Risk**

When stablecoin settlement is enabled, risks may include:

* Depegs
* Liquidity shortages
* Oracle pricing inconsistencies
* Slippage during internal conversions

During bootstrap mode, only XRP is used to simplify risk exposure.

***

### **Slashing and Penalty Risk**

Governance participants can lose a percentage of their stake if they:

* Submit incorrect proposals
* Vote incorrectly
* Act dishonestly

These penalties are real and enforced through share burns. Users who participate in governance must understand the rules.

***

### **Escalation Failure Risk**

In very rare cases, even escalation to all stakers may not reach quorum or consensus. If this happens, the market resolves as Invalid and all traders are refunded.

This is a designed safety valve, but it represents a potential loss of clarity on certain outcomes.

***

### **Bootstrap Mode Risk**

During the initial bootstrap period:

* Market creation is whitelisted
* Resolution is handled by authorized signers
* Certain administrative actions can occur to stabilize the system

Although heavily rate limited and fully transparent, bootstrap mode is still a form of temporary centralization. Users should be aware of this until bootstrap mode ends automatically after 12 months or is disabled earlier by a multi-signer vote.

***

### **Frontend and Infrastructure Risk**

Axiom’s frontend, APIs, or infrastructure providers could experience:

* Outages
* Downtime
* Congestion
* Latency issues
* Incorrect data display

Trading and governance are executed on-chain, but interface interruptions can still impact the user experience.

For example, the web app or Axiom CLI may become less convenient to use during outages or degraded service. Direct smart contract interaction on the XRPL EVM Sidechain may still remain possible, but it can be less ergonomic and may not include the richer metadata or backend-derived views exposed by higher-level interfaces.

***

### **Regulatory and Jurisdictional Risk**

Prediction markets operate in a complex legal environment. Regulations vary by jurisdiction. Axiom does not offer legal guarantees, and users are responsible for understanding local laws applicable to them.

The protocol is permissionless, but compliance requirements may differ across regions.

***

### **User Error Risk**

Users may experience losses due to:

* Incorrect market interpretation
* Sending assets to the wrong address
* Misreading resolution evidence
* Failing to claim winnings
* Confusing settlement asset denominations

These risks are inherent to self-custody and decentralized systems.


# Conclusion

Axiom is the prediction market built for the XRP community, with a deeply decentralized backend and a simple user-facing product

Axiom is a prediction market designed for the way people already think, talk, and speculate about the future. It brings together the culture of the XRP community, the global utility of prediction markets, and a technical foundation built on real economic security.

At the surface, Axiom is simple. Users deposit XRP, trade on the outcomes they care about, and withdraw whenever they choose. The interface is clean, the markets are intuitive, and the trading experience is accessible to anyone.

That simplicity can be delivered through multiple interfaces. Human users will usually use the app. For AI agents, Axiom CLI is the recommended interface because it provides a more consistent and ergonomic workflow. Direct smart contract interaction remains available because the protocol itself is decentralized.

Beneath the surface, Axiom is a fully realized protocol. Axiom Prime turns stake into yield and governance power. Axiom Theorem turns markets into engines of truth. The system uses incentives and penalties to align participants around honesty, and snapshots to ensure fairness and decentralization. The XRPL EVM Sidechain provides the functionality, speed, cost efficiency, and liquidity needed to support a global platform.

Axiom begins with a controlled bootstrap phase to ensure a healthy and stable launch. As soon as the community is ready, decentralized governance replaces the bootstrap council and the protocol becomes permissionless. At that point, markets are created and resolved by users holding real economic weight, not by committees or oracles.

Axiom is built for XRP holders first. It is also built for traders, forecasters, analysts, sports fans, institutions, and anyone who wants to see what the world believes about the future. Its design allows it to scale into a prediction layer that lives at the intersection of finance, information, and collective intelligence.

The vision is simple. A market where people place value behind their beliefs. A system where truth is enforced by stake, not authority. A platform where yield and integrity come from the same source. A community where speculation becomes data and opinions become markets.

Axiom is where XRP holders bet on the future. Axiom is where truth is found through economic consensus. Axiom is a prediction market powered by real incentives, built for real users, and designed to grow stronger every time someone trades, stakes, votes, or resolves.

Axiom is the future of prediction markets, built on the assets people already trust and the behaviors they already express. It is the bridge between belief and value, between speculation and consensus, between markets and truth.

Axiom is where you put your money where your mouth is.


# FAQ

### **What is Axiom?**

Axiom is a prediction market where users trade on future events using XRP or stablecoins like RLUSD. It is built for the speculation culture of the XRP community and expands into global, crypto, sports, and economic markets.

***

### **Does Axiom have a token?**

No. Axiom does not have a native token.\
You use the assets you already hold, starting with XRP.

***

### **How do markets work?**

Axiom uses a CLOB backed by Conditional Tokens:

* Users trade outcome tokens through an order book.
* Makers add liquidity by placing resting orders.
* Takers remove liquidity by crossing the spread.
* Matched trades settle onchain through `AxiomCTFExchange`.
* After resolution, winning tokens are redeemed for collateral.

This gives Axiom tradable positions, visible depth, and onchain settlement without relying on a centralized bookmaker.

***

### **What can I bet on?**

Axiom supports:

* XRP and Ripple ecosystem predictions
* Crypto market outcomes
* Global events
* Sports
* Technology and macroeconomics
* Social and narrative driven events

These markets reflect what XRP holders and global traders already talk about.

***

### **How are outcomes determined?**

Axiom uses decentralized, stake-weighted governance:

1. A top 50 percent staker proposes an outcome
2. Others can challenge it
3. If challenged, top 50 percent stakers vote
4. If still unresolved, all stakers vote
5. If nothing passes, the market resolves as invalid and unresolved positions can be redeemed accordingly

Incorrect actors lose stake. Correct actors gain stake.

***

### **Why can the first proposal pass automatically?**

This is called optimistic resolution.\
If no one challenges the proposal during the challenge window, it is accepted automatically. This allows uncontested markets to resolve in hours rather than days.

***

### **What happens if people vote incorrectly on purpose?**

They lose part of their staked value. Penalties are enforced through share burns:

* Incorrect proposers lose 0.20 percent of their stake
* Incorrect voters lose 0.10 percent

These penalties are redistributed to honest participants.

***

### **What is Axiom Prime?**

Axiom Prime is the staking and yield layer.\
Stakers:

* Earn yield from market commissions and penalties
* Receive non-transferable share tokens
* Gain governance power
* Become eligible to create markets and resolve outcomes

The same capital that earns yield also protects truth.

***

### **What is the top 50%?**

Every 24 hours, Axiom snapshots all stakers and sorts them by USD value.\
The top 50 percent of stakers are eligible to:

* Create markets
* Propose outcomes
* Challenge proposals
* Vote in the first voting round

This prevents small wallets from spamming governance.

***

### **Why is Axiom launching in bootstrap mode?**

At launch there are:

* No stakers
* No top 50%
* No governance participants

Bootstrap mode solves this by allowing a whitelisted council to:

* Create early markets
* Resolve outcomes
* Seed activity
* Stabilize the protocol

Bootstrap mode ends when:

* Three signers vote to disable it
* Or 12 months pass

***

### **How do I earn yield?**

During the Bootstrap phase, you can earn incentives through the Axiom Points program.

Current live CLOB points rules:

* Points come from settled CLOB fills.
* Makers earn `1.5x` points.
* Takers earn `1.0x` points.
* Referrers earn `10%` of a referee's base trading points.
* Base rate is `$1` of executed USD notional = `100` points.

Post-bootstrap, stakers earn yield from protocol fees and governance penalties.

***

### **Can I lose money by staking?**

Yes.\
Only if you propose or vote incorrectly, penalties apply. These penalties are small but real and are designed to ensure honest participation.

If you do not participate in governance, you do not risk any penalties, but you do still earn yield from market commissions.

***

### **When will stablecoin markets be supported?**

Stablecoins like RLUSD, USDC, or USDT will be supported once sufficient liquidity is available on the XRPL EVM Sidechain. Governance can then enable stablecoin settlement and new vaults.

***

### **Can anyone create markets?**

After bootstrap mode ends, yes.\
Any top 50% staker can create markets.

During bootstrap mode, only whitelisted signers can create markets.

***

### **Can I exit a position before resolution?**

Yes, if there is liquidity on the order book.

Because Axiom uses tradable Conditional Tokens positions, users can:

* sell a position they already hold
* buy an outcome before resolution
* post resting orders and wait for fills

Final redemption still happens only after the market is resolved.

***

### **Which network does Axiom run on?**

The XRPL EVM Sidechain.\
This provides:

* XRP liquidity
* Low fees
* Fast execution
* Smart contract functionality
* A smooth user experience

Although, users do not need to understand bridging or network details and can deposit XRP from the XRPL mainnet or any CEX.

***

### **What is the recommended way for AI agents to use Axiom?**

Axiom CLI is the recommended interface for AI agents.

It provides a more consistent workflow for agent automation and can expose richer reads than raw contract interaction alone, including market discovery, metadata, outcome labels, profile views, rewards state, unclaimed winnings, and funding instructions.

***

### **Can users or agents interact with Axiom directly through smart contracts?**

Yes. Axiom is a decentralized protocol deployed on the XRPL EVM Sidechain, so anyone can interact directly with supported permissionless contract functions.

The CLI is recommended because it is more consistent and ergonomic, not because it has exclusive access. Privileged or administrative actions are still restricted by contract permissions.

***

### **Is Axiom legal in my country?**

Regulations differ across regions. Axiom is a decentralized protocol and does not provide legal advice. Users are responsible for understanding local laws and restrictions.

***

### **Can businesses or institutions use Axiom?**

Yes. Institutions can use Axiom to:

* Hedge political or economic risks
* Forecast macro outcomes
* Track market sentiment
* Evaluate adoption trends
* Inform internal planning

Axiom can serve as a decentralized forecasting layer.

***

### **What happens if a market becomes unclear or disputed?**

If proposals and votes fail to reach consensus, the market resolves as invalid.

This protects users from ambiguous or unresolvable events.

***

### **Can Axiom be shut down?**

Axiom is a set of smart contracts deployed on the XRPL EVM Sidechain.\
Once bootstrap mode ends, no entity can unilaterally change or disable the protocol. Governance is fully stake based and decentralized.

This also means access is not dependent on a single interface. The app and Axiom CLI may be the easiest ways to use Axiom, but users can still interact with the protocol directly onchain.


# Introduction

In-depth technical explanation of axiom protocol

Axiom is a dual-protocol system built on the **XRPL EVM Sidechain**, uniting decentralized finance and prediction markets into a single, self-reinforcing economy. It consists of two interoperable layers:

* **Axiom Prime**, a DeFi staking and yield mechanism initially supporting XRP, with additional stablecoin vaults (USDC, USDT, RLUSD, or others) added by dev team during bootstrap or via governance approval post-bootstrap as liquidity becomes available.
* **Axiom Theorem**, a decentralized system for event-based markets and truth resolution.

Unlike token-driven governance systems, Axiom replaces governance tokens with **staked economic weight**. Those who contribute capital to Axiom Prime govern and secure Axiom Theorem, while earning sustainable yield from market activity.

Yield flows from market commissions and penalties, while governance power arises naturally from the distribution of staked value. Axiom aligns incentives around a simple principle: *the same capital that earns yield must also protect truth.*

***

Prediction markets have long promised accurate forecasting through the aggregation of collective intelligence. However, they’ve struggled to achieve decentralized trust and consistent liquidity.

At the same time, DeFi protocols have successfully attracted capital, but often without intrinsic yield sources, relying on inflationary token emissions or external DeFi strategies.

**Axiom** merges these domains by binding market integrity directly to capital. It transforms staked value into both a **yield engine** and a **governance foundation**.

* **Axiom Prime** acts as the financial foundation, initially accepting XRP deposits (with stablecoin vaults added as liquidity emerges), distributing yield from prediction market activity, and measuring stake-based influence.
* **Axiom Theorem** hosts event markets, where truth resolution depends on the economic consensus of Axiom Prime stakers.

This design removes governance tokens, liquidity fragmentation, and oracle dependencies—creating a decentralized and sustainable system where **capital, governance, and information integrity** coexist.


# System Overview

A symbiotic protocol

Axiom operates as two symbiotic smart contract systems deployed on the **XRPL EVM Sidechain**:

* **Axiom Prime** — manages staking, yield, and percentile-based governance eligibility.
* **Axiom Theorem** — creates, trades, and resolves event markets, using staker-based voting and penalties for enforcement.

<figure><img src="https://739879467-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F9z6H1GHZnDysTfGr5v9x%2Fuploads%2Fgit-blob-91bbcd79d49f9118dc561cf9a7d561892ebfcc37%2Fdual-protocol-overview.png?alt=media" alt=""><figcaption><p><em>Figure 1: Axiom's dual-protocol architecture, showing the symbiotic relationship between Axiom Prime (DeFi) and Axiom Theorem (Markets)</em></p></figcaption></figure>

### **Core Design Goals**

1. **Unified Liquidity:** all protocol operations are powered by XRP at launch, with stablecoin support (USDC, USDT, RLUSD, or others) added as ecosystem liquidity develops.
2. **Economic Truth:** outcomes are verified by stakers with the highest financial exposure.
3. **Sustainability:** yield flows from organic market activity, not inflation.
4. **Accountability:** misaligned behavior is punished via proportional stake penalties.

The protocols reinforce each other: Axiom Theorem generates yield for Axiom Prime, while Axiom Prime stakers guarantee Axiom Theorem's integrity.


# Axiom Prime

Sustainable and transparent yield for XRP holders

Axiom Prime serves as Axiom's DeFi core. Users stake **XRP** into yield-bearing vaults and receive **non-transferable** share tokens (e.g., `aXRP`). As stablecoin liquidity develops on XRPL EVM Sidechain, governance may approve additional vaults for assets like **RLUSD**, **USDC**, **USDT** or wrapped versions of XRP like FXRP, mXRP, and stXRP. These vaults accumulate yield from market activity and define the governance power structure of the ecosystem.

Share tokens are non-transferable to preserve governance integrity. They represent:

* Yield-bearing positions that automatically appreciate as fees flow into the vaults
* Governance weight tied directly to the staker's address
* Eligibility tracking for percentile-based market creation and voting rights

Stakers may deposit or withdraw when they are not subject to active governance locks, but cannot sell or transfer their governance position to another address.


# Vault Registry

To support a flexible multi-asset future while starting with a robust XRP-first foundation, Axiom uses a **Vault Registry** to define which assets carry governance power.

* Registry: Tracks all active Axiom Prime vaults and their configuration.
* Governance Status: Only vaults flagged as `countsForGovernance` contribute to a user's voting weight.
* Bootstrap Configuration: Initially, only the XRPVault is active and governance-bearing. As stablecoin liquidity emerges on XRPL EVM Sidechain, dev team can add stablecoin vaults during bootstrap (USDC, USDT, RLUSD, or others), or governance can vote to add vaults post-bootstrap once decentralized control is established.


# Vault Mechanics

Each vault maintains a share price that increases as yield accrues:

```
sharePrice = totalAssets / totalShares
```

Why Share Tokens?

* Gas Efficiency: Only global `sharePrice` updates when yield arrives.
* Automatic Compounding: Yield accrues passively to all positions without manual claims.
* Fair Entry/Exit Pricing: Share price ensures proportional yield allocation.
* Standard DeFi Pattern: Share-based vaults (ERC-4626 standard) are battle-tested.

When users deposit, they receive shares based on the current price. When they withdraw, their shares are burned and they receive the underlying assets at the current share price. Stakers can deposit or withdraw when they are not subject to active resolution locks.

Yields accumulate via:

* Protocol fee flows directed to the staker fee recipient, including legacy market commissions and the live CLOB staker fee path.
* Penalties slashed from dishonest or incorrect voters/proposers.
* Optional external incentives or integrations.


# Staking Snapshots

Every epoch (default: 24 hours), the system records each staker's USD-equivalent value:

```
stakeUSD = SUM(position_v * sharePrice_v * assetPriceUSD_v) for all GovernanceVaults
```

During the bootstrap phase, this simplifies to just the XRP vault position.

Snapshots are stored immutably and used for percentile calculations:

* Top 50% → eligible to create prediction markets, propose/challenge outcomes, and vote in initial resolutions.

Snapshots ensure deterministic eligibility and prevent stake-hopping manipulation.

#### Optimistic Snapshot Architecture

Axiom uses an optimistic off-chain computation model with on-chain fraud proofs to achieve major gas savings while maintaining decentralization.

{% stepper %}
{% step %}

### Normal Operation (99%+ of snapshots)

1. Off-chain indexer computes staker percentiles and builds a Merkle tree
2. Submitter posts Merkle root on-chain (\~251k gas) with economic bond (100-1000 XRP)
3. 24-hour challenge window allows anyone to dispute with fraud proof
4. If unchallenged, snapshot auto-finalizes
5. Users verify eligibility via cheap Merkle proofs (\~4k gas)
   {% endstep %}

{% step %}

### Fraud Proof (rare, economically deterred)

1. Challenger submits fraud proof with alternative Merkle root + bond
2. Contract computes percentiles on-chain (expensive! \~4M gas for 1000 stakers)
3. Compares roots: loser forfeits bond to winner (200 XRP total)
4. Economic deterrent: attacking costs $250-$2,500, defending is cheaper
   {% endstep %}

{% step %}

### Rollout Phases

1. Bootstrap (Months 0-12): Trusted signers post snapshots, no challenges (rapid iteration).
2. Challengeable (Months 12-18): Same signers, fraud proofs enabled.
3. Permissionless (Month 18+): Anyone can submit with 1000 XRP bond (full decentralization).
   {% endstep %}
   {% endstepper %}

Why this works:

* Cost efficiency: $3k-$15k/year vs $1.8M/year pure on-chain sorting.
* Decentralization: Anyone can submit/challenge with bonds ensuring honesty.
* Scalability: Off-chain computation supports millions of stakers.
* Security: Economic game theory makes attacks irrational.

#### Dual Epoch Locking: Creation vs Resolution

Axiom uses a two-epoch system to balance long-term market integrity with fresh voter participation:

* Creation Epoch: Locked when market is created, determines who can create markets.
* Resolution Epoch: Locked when the first proposal is submitted, determines who can submit proposals, vote, and receive penalties/rewards.

This prevents stake-hopping and ensures penalties/rewards apply to currently-staked participants.

Example Flow:

```
Day 1 (Epoch 100): Market created
- creationEpoch = 100
- resolutionEpoch = null

Day 90 (Epoch 190): First proposal submitted
- resolutionEpoch = 190 (LOCKED)
- Only Epoch 190 top 50% can submit proposals and vote
- Vaults enforce resolution lock on Epoch 190 participants

Day 91-93: Voting period
- Withdrawal blocked for all proposal submitters and voters
- Penalties/rewards apply to Epoch 190 stakes
```

Two snapshot mechanisms:

* Governance Snapshots (24-hour epochs): staker USD values for percentile-based eligibility.
* TVL Snapshots (hourly updates): track vault TVL for fee distribution.

Both operate independently.

#### Snapshot Automation

Snapshots are permissionless and trustless; any participant can trigger the snapshot function after an epoch duration has elapsed. Contracts fetch XRP/USD price from decentralized sources (BandChain oracle or XRP/USD-pegged stables DEX), calculate USD-equivalent positions, store data on-chain, and compute percentiles.

Epoch duration (default 24 hours) is governance-adjustable.


# Yield Distribution

Yield accrues automatically to stakers via share price appreciation:

```
sharePrice = totalAssets / totalShares
```

When fees flow into the vault:

1. totalAssets increases
2. totalShares remains constant
3. sharePrice increases
4. All share holders' positions appreciate

Example:

* Vault has 100,000 XRP assets and 90,000 aXRP shares → sharePrice = 1.111
* Protocol earns 5,000 XRP in fees → new sharePrice = 105,000 / 90,000 = 1.167

Yields accrue passively; withdrawing burns shares at current share price.

### Governance by Value

Governance is dictated purely by stake size:

* No governance token.
* Voting weight = USD stake value at snapshot.
* Power derives from liquidity contribution, not speculation.

Admin management:

* `ADMIN_ROLE` (AxiomAccessControl) manages critical updates (upgrades, registry refs).
* Admins can add/remove admins; system prevents removal of last admin.
* Admins can permanently freeze critical dependencies once stable.


# Axiom Theorem

A decentralized prediction market built on XRP rails

## **Market Lifecycle**

Axiom Theorem combines CLOB trading with stake-weighted market resolution. A market can be created, traded, resolved, and redeemed without relying on a centralized bookmaker or governance token.

{% stepper %}
{% step %}

### Creation

Only top 50% Axiom Prime stakers may create markets after bootstrap mode, specifying:

* Title, outcomes, trading window, resolution timing, and settlement asset.
* Metadata and evidence sources for clear resolution.
* The logical market structure that the frontend will render.

For CLOB markets, one user-facing market may map to one or more binary `AxiomCTFMarket` contracts under the hood.
{% endstep %}

{% step %}

### Trading (CLOB)

Axiom now uses a Central Limit Order Book backed by Conditional Tokens.

At a high level:

* `AxiomConditionalTokens` represents outcome positions as ERC-1155 tokens.
* `AxiomCTFMarket` prepares and resolves each market condition.
* `AxiomCTFExchange` settles matched trades onchain.
* An offchain matching engine handles order ingestion, price-time priority matching, and book state.

### What users do

Users interact with markets through an order book instead of a shared prize pool.

They can:

* place limit orders that rest on the book
* take existing liquidity for immediate execution
* mint complete sets of outcome tokens and sell the side they do not want
* hold winning tokens through resolution and redeem them afterward

### Core CLOB concepts

| Term       | Meaning                                    |
| ---------- | ------------------------------------------ |
| **Bid**    | Highest price a buyer is willing to pay    |
| **Ask**    | Lowest price a seller is willing to accept |
| **Spread** | Difference between best bid and best ask   |
| **Depth**  | Available size at each price level         |
| **Maker**  | Resting order that adds liquidity          |
| **Taker**  | Incoming order that removes liquidity      |

Orders follow **price-time priority**:

1. Better prices match first.
2. If prices are equal, older orders match first.

### Why Axiom uses CLOB markets

| Benefit                           | Description                                                                                       |
| --------------------------------- | ------------------------------------------------------------------------------------------------- |
| **Tradable positions**            | Users can enter and exit before resolution by buying and selling tokens on the book               |
| **Professional market structure** | Price-time priority, visible depth, and signed orders support real market making                  |
| **Onchain settlement**            | Final fills settle through `AxiomCTFExchange`, not a trusted offchain ledger                      |
| **Composable inventory**          | Users can mint complete sets, trade single outcomes, merge positions, and redeem after resolution |
| **Clear incentives**              | Makers, takers, and referrals can all be rewarded through Axiom Points                            |
| **Logical market flexibility**    | One user-facing market can map to multiple binary market contracts while keeping one clean UI     |

### Asset flow

For binary markets, users can always reason about positions as YES and NO tokens.

* Buying YES means paying collateral and receiving YES tokens.
* Selling YES means delivering YES tokens and receiving collateral.
* Holding one share of every outcome forms a complete set that is redeemable for full collateral value.

### Settlement fees

CLOB markets charge protocol fees on settled trades, not on redemption.

Default live fee split:

* `0.50%` to the dev treasury
* `0.25%` to the staker fee recipient
* `0.25%` to the incentives recipient

This is a **1.00% total trade fee** on settled CLOB trades.

### What users see

Instead of pool ratios or time bonuses, users see market microstructure:

* best bid and ask
* order book depth
* last trade price
* price chart built from actual fills
* open orders and fill history
* positions by outcome

Markets can still be binary or multi-outcome, but the trading interface is now order-book based rather than prize-pool based.
{% endstep %}

{% step %}

### Proposal (Optimistic Resolution)

The first top 50% staker to submit an outcome proposal becomes the official proposal. They provide evidence URIs and the proposal immediately enters a challenge window (default: 6 hours, governance-adjustable).

* If no challenge is submitted during this window, the proposal is automatically accepted and the market finalizes.
* The proposer receives a fixed consensus bonus (default: $10 USD equivalent, governance-adjustable).
* Any top 50% staker may submit a challenge during the window with an alternative outcome, triggering a governance vote.
  {% endstep %}

{% step %}

### Challenge & Voting (if triggered)

When a challenge is submitted:

* All top 50% stakers vote between the original proposal and the challenger.
* Vote weight is proportional to staked value.
* Voting window is 24 hours by default.
  {% endstep %}

{% step %}

### Escalation (if needed)

If the top 50% vote fails to reach consensus because quorum or supermajority is not met, the market escalates to all Axiom Prime stakers.

* The same quorum and threshold logic applies.
* An automatic 24-hour extension can trigger if quorum is not reached.
* If escalation still fails, the market resolves as invalid and unresolved positions are refunded via the redemption path.
  {% endstep %}

{% step %}

### Settlement and Redemption

Once the outcome is finalized:

* `AxiomCTFMarket` reports payouts to Conditional Tokens.
* Winning positions become redeemable for collateral.
* Users redeem through the market-scoped redemption path or directly through Conditional Tokens.
* CLOB trade fees have already been charged during execution, so redemption itself does not apply another payout fee.

Governance rewards and penalties still apply at resolution:

* incorrect proposers and voters lose stake
* correct participants receive the redistributed penalty pool
* unchallenged proposers receive the fixed proposer bonus
  {% endstep %}
  {% endstepper %}


# Governance and Resolution

### Optimistic Resolution

* First top 50% staker to submit a proposal becomes official; proposal enters a challenge window (6 hours default).
* If unchallenged, the proposal auto-accepts and the proposer receives the fixed consensus bonus.
* Top 50% stakers may challenge, triggering a vote.

This prioritizes speed and efficiency so many outcomes can resolve without requiring a full vote.

### Challenge & Initial Voting (Top 50%)

* Top 50% stakers vote between the original proposal and the challenger.
* Voting window: 24 hours.
* Quorum: at least 10% of eligible stake.
* Majority: greater than 66.7% of votes cast.
* Failure to reach consensus triggers escalation.

### Escalated Resolution (All Stakers)

* Triggered when thresholds or quorum are not met, or when the result remains contentious.
* All stakers vote with snapshot-based weighting.
* Quorum: 10% of all staked value.
* Majority: greater than 66.7% of votes cast.
* Penalty and reward logic applies network-wide.

### Market Finalization & Settlement

Once finalized:

Step 1: Outcome verification

* Record the winning outcome onchain with timestamp and evidence.

Step 2: Payout reporting

* `AxiomCTFMarket` reports the payout vector to Conditional Tokens.

Step 3: Governance fee, penalty, and reward processing

* governance penalties and proposer bonuses are applied through the Axiom Prime side of the system
* staker-directed fee recipients continue to receive their configured protocol flows

Step 4: Redemption

* users redeem winning positions for collateral
* CLOB markets do not charge an additional payout fee at redemption time because protocol trade fees are collected during `AxiomCTFExchange` settlement

Step 5: State archival

* market data remains available onchain for history and analytics


# Penalty and Incentive Model

Axiom enforces honesty through stake penalties; parameters are governance-adjustable.

### Parameters

| Symbol | Meaning                 | Default | Adjustable |
| ------ | ----------------------- | ------- | ---------- |
| β      | Losing voter penalty    | 0.10%   | Yes        |
| γ      | Losing proposer penalty | 0.20%   | Yes        |
| ε      | Idle voter penalty      | 0.00%   | Yes        |
| MAXp   | Max per-market penalty  | 0.25%   | Yes        |
| MAXe   | Max per-epoch penalty   | 1.00%   | Yes        |

Parameter changes proposed by Top 50% stakers require >⅔ of total staked value to execute.

***

### Pool Formation

Each finalized market forms a penalty pool:

```
Pool = Σ(β * Vl) + Σ(γ * Pl) + Σ(ε * idle)
```

### Distribution

* Unchallenged: no penalty pool; proposer receives fixed consensus bonus.
* Challenged: 60% to correct proposer, 40% to correct governance voters.
* Creator quality bonus (0.15% of market pool) applies only if market resolves without challenge (unchallenged optimistic resolution).

Governance voters are stakers (not market traders). Traders receive market payouts in settlement token; governance voters receive share-token rewards/penalties.

### Enforcement

Penalties and rewards applied via share burns/mints:

```
Δshares = (usdDelta / sharePrice)
```

### Examples

Challenged resolution and unchallenged optimistic resolution examples are provided in the full spec illustrating penalty pool formation and distribution.


# Escalation Mechanics

### Trigger Conditions

Escalation occurs when conflicting proposals both gain ≥33% support, quorum or threshold not met, or other contention criteria.

### Process

* All stakers vote using snapshot weights.
* Same penalty/reward structure applies.
* If unresolved → fallback to “Invalid/Null” outcome.

### Safeguards

* Turnout extension: 24h auto-extension if quorum not reached.
* Penalty caps prevent compounding losses.
* Snapshot lock prevents exits mid-resolution.


# Economic Synergy

### Yield Loop

* Protocol trading fees and governance penalties feed Axiom Prime incentives and yield.
* Bootstrap rewards and proposer consensus bonuses accelerate early participation.

### Governance Loop

* Stakers govern resolution; good behavior earns rewards; rewards attract more stake.

### Integrity Loop

* Dishonest actions cause penalties → increase yield for honest stakers.

System flow (simplified):

```
Trading Fees + Penalties → Staker Fee Recipient / Rewards Infrastructure → Axiom Prime Vaults + Governance Incentives → Stake Growth → Governance Security → Market Integrity
```


# Security and Game Theory

### Stake-Weighted Honesty

Rational participants maximize utility by voting truthfully since penalties outweigh gains from false reporting.

### Sybil Resistance

* Governance rights determined by USD stake, not number of addresses.
* Non-transferable share tokens prevent buying/borrowing governance power.
* Fragmenting stake provides no amplification and increases gas costs.

Attackers would need >66% of TVL to meaningfully manipulate outcomes, risking their own capital and future yields.

### Snapshot Fairness

Snapshots fix stake values before voting, preventing late deposits/withdrawals from manipulating outcomes.

### Collusion Resistance

Colluders need >66% stake to manipulate markets, economically infeasible since capital is at risk.


# Implementation Design

Smart contract architecture of Axiom Protocol

| Contract                          | Function                                           |
| --------------------------------- | -------------------------------------------------- |
| `XRPVault` (future stable vaults) | Staking, share accounting, reward distribution     |
| `EligibilityRegistry`             | Snapshot and percentile tracking                   |
| `FeeRouter`                       | Routing staker fees and yield flows                |
| `MarketFactory` (upgradeable)     | Market creation and implementation deployment      |
| `AxiomConditionalTokens`          | ERC-1155 positions, split, merge, redeem           |
| `AxiomCTFMarket`                  | Per-market condition wrapper and resolution oracle |
| `AxiomCTFExchange`                | Onchain CLOB settlement for matched trades         |
| `AxiomRewards`                    | Onchain claims for epoch-based rewards             |

Upgradeable Market Factory: UUPS proxy pattern to evolve implementation registration and deployment logic over time. Upgrade control transitions from launch administration to more decentralized governance over time.

Upgrade admin staged transition:

1. Dev EOA (Phase 1)
2. 3-of-5 multisig (Phase 2)
3. Governance-controlled timelock and multisig (Phase 3)


# Key Functions

Market Factory:

* `createMarket()` — deploy markets with eligibility checks where required.
* `upgradeFactory()` — admin-controlled upgrade.

Conditional Tokens:

* `splitPosition(...)` — mint complete sets from collateral.
* `mergePositions(...)` — merge complete sets back into collateral.
* `redeemPositions(...)` — redeem winning positions after resolution.

CLOB Settlement:

* `matchOrders(...)` — settle matched orders atomically onchain.
* `cancelOrder(...)` — cancel a signed order.

Market Resolution:

* `resolve(...)` — report payouts for a market once governance finalizes the outcome.
* `redeemWithFees(...)` — market-scoped redemption helper for resolved positions.

Rewards:

* `postRewards(...)` — publish epoch rewards merkle roots.
* `claim(...)` — claim epoch rewards.


# Data Flow

Stake XRP (and stablecoins if added) → Snapshot → Eligibility Proofs → MarketFactory → `AxiomCTFMarket` + `AxiomConditionalTokens` → Offchain Matching Engine → `AxiomCTFExchange` → Resolution → Redemption → Staker Fee Recipient / Incentives / Dev Treasury

Trading and settlement flow:

1. A logical market is created through `MarketFactory`.
2. One or more `AxiomCTFMarket` contracts prepare the underlying conditions.
3. Users sign orders and the offchain matching engine maintains the live book.
4. Matched trades settle atomically through `AxiomCTFExchange`.
5. The market resolves through governance.
6. Winning positions are redeemed for collateral.

### Optimization

* Merkle proofs for eligibility verification.
* Offchain matching with onchain final settlement.
* Batch settlement for capital and gas efficiency.
* Epoch-based aggregation for rewards and penalty caps.


# XRPL EVM Sidechain Context

XRPL EVM Sidechain backend, XRP-from-anywhere frontend

Axiom utilizes the XRPL EVM Sidechain, leveraging:

* Native XRP liquidity and low latency.
* XRP as initial settlement asset; stablecoins enabled as liquidity matures.
* XRPL bridging for mainnet flows.
* Price discovery via BandChain oracle and XRP/USD-pegged stables DEX.
* Integrated DEX routing for XRP ↔ stablecoin swaps when needed.

The smart contracts are the protocol's source of truth. The Axiom app and Axiom CLI are interface layers on top of those contracts, with the CLI serving as the recommended interface for AI agents. Because the protocol is decentralized, direct contract interaction remains possible for supported permissionless flows.


# Governance by Staked Value

Built for XRP and RLUSD

No governance token exists.

* Top 50% stakers: create markets, propose outcomes, and vote in initial resolutions.
* All stakers: participate in escalated resolutions.

Protocol parameter changes follow stake-weighted processes: supermajority (>⅔ of total staked value) required to execute changes. Penalty adjustments include safeguards (cooling period, range limits, proportionality).


# Bootstrap Launch Mechanism

The cold start problem

To solve initial bootstrapping (no stakers → no markets → no yield), Axiom includes a temporary bootstrap mode granting the dev team limited operational privileges to seed markets and demonstrate system lifecycle. Transition to decentralized governance occurs via 3-signer consensus or automatically after 12 months (contract includes a hard 12-month maximum bootstrap duration).


# Multi-Signer Bootstrap Authority

Design:

* Authorization Registry holds 5-10 signer addresses.
* Each signer can independently create markets and submit proposals (bypassing top 50% checks).
* Geographic distribution and action transparency via events.

Authorized operations include market creation, proposal submission, adding vaults, whitelisting settlement tokens, and rate-limiting.

Rate limits per signer:

* 5 markets/day
* 10 proposals/day

All bootstrap actions emit events such as:

```solidity
event BootstrapMarketCreated(address indexed signer, uint256 indexed marketId, string title);
event BootstrapProposalSubmitted(address indexed signer, uint256 indexed marketId, uint8 outcome);
```


# Safeguards

### Deactivation Control

Bootstrap mode deactivation:

* Primary: Any 3 bootstrap signers collectively vote to disable bootstrap mode.
* Secondary (hard limit): 12 months post-deployment, privileges revoke automatically (immutable).

### Operational Safeguards

* Rate limiting, action logging, quality standards, and signer management (add/remove/terminate).
* Front-end displays "BOOTSTRAP" badge for transparency.
* Dev team penalties apply if bootstrap proposals resolve incorrectly.


# Bootstrap Roadmap

### Launch Roadmap

Week 1-2: Dev signers create demo markets across sports, crypto, and macro categories. Early launch focuses on proving the CLOB trading flow, order book behavior, and market resolution lifecycle.

Week 3-4: Dev signers submit proposals for completed markets to showcase optimistic resolution, challenged resolution, and rewards distribution.

Month 2: Reduce dev activity as organic participation grows and market creation, trading, and governance metrics strengthen.

Month 3-12: Transition to community control with 3-signer termination option and hard 12-month deadline.

### Post-Bootstrap Monitoring

Key metrics tracked after bootstrap:

* Decentralization metrics: market creator diversity, proposal participation, voter distribution (Gini).
* Quality metrics: resolution accuracy, challenge rate, penalty distribution fairness.
* Liquidity metrics: order book depth, trading volume, spread quality, and effective APY.


# Future Extensions

The initial release of Axiom is just the beginning

### Multi-Asset Staking

Support for LSDs, wrapped assets, and synthetic positions is possible but requires robust oracles and risk controls.

### Cross-Market Arbitrage

Atomic swaps and liquidity aggregation across correlated markets to improve price discovery and attract market makers.

### Automated Templates

Standard market templates (sports, crypto price targets, macro, on-chain events) to reduce friction and standardize evidence sources.

### AI-Based Proposal Scoring

Optional off-chain advisory models to analyze evidence, surface sentiment, and flag low-credibility sources. Advisory only—final decisions remain with stakers.

### SubDAO Layer

Specialized working groups (SubDAOs) for domain-specific proposals and delegated voting, receiving budgets and vetting proposals before full governance submission.


# Conclusion

Axiom merges market activity, staking yield, and truth resolution into a single capital-efficient ecosystem where economic honesty is rewarded and manipulation punished. Built on XRPL EVM Sidechain, Axiom leverages XRP liquidity and introduces a decentralized economic governance layer where truth itself becomes a yield source.

***

## Contact & Attribution

Protocol Designer: Mark Ibanez\
Email: <mark@gen3games.com>\
Organization: Gen3 Labs

For inquiries, partnerships, or technical discussions about Axiom Protocol, contact <mark@gen3games.com>.

Axiom Protocol — Built on the XRPL EVM Sidechain. Where DeFi liquidity powers decentralized truth.

© 2025 Mark Ibanez | Gen3


# Appendix: Core Parameters

| Variable                  | Description                                                                  | Default         | Adjustable     |
| ------------------------- | ---------------------------------------------------------------------------- | --------------- | -------------- |
| epochDuration             | Snapshot interval                                                            | 24h             | Yes            |
| stakerCommission          | Axiom Prime commission per market resolution flow                            | 1%              | Yes            |
| devTeamFee                | Fixed development team fee in the legacy market model                        | 1%              | Yes            |
| creatorQualityBonus       | Market creator bonus for no-escalation resolution in the legacy market model | 0.15%           | Yes            |
| proposerConsensusBonus    | Proposer bonus for unchallenged resolution (USD equivalent)                  | $10             | Yes            |
| challengeWindow           | Time to challenge a proposal before auto-accept                              | 6h              | Yes            |
| voteWindow                | Voting duration after challenge                                              | 24h             | Yes            |
| escalatedVoteWindow       | Escalated voting duration with extensions                                    | 24h (+24h ext.) | Yes            |
| β\_vote                   | Losing voter penalty                                                         | 0.10%           | Yes            |
| γ\_prop                   | Losing proposer/challenger penalty                                           | 0.20%           | Yes            |
| ε\_idle                   | Idle voter penalty                                                           | 0.00%           | Yes            |
| MAX\_PENALTY\_USER        | Max per-market penalty                                                       | 0.25%           | Yes            |
| MAX\_PENALTY\_EPOCH       | Max per-epoch penalty                                                        | 1.00%           | Yes            |
| clobDevFeeBPS             | CLOB dev treasury fee                                                        | 0.50%           | Yes            |
| clobStakerFeeBPS          | CLOB staker/rewards fee                                                      | 0.25%           | Yes            |
| clobIncentivesFeeBPS      | CLOB incentives fee                                                          | 0.25%           | Yes            |
| clobTakerFlatFeeThreshold | Small-order threshold for flat taker fee                                     | 12 XRP          | Yes            |
| clobTakerFlatFee          | Flat fee for small taker executions                                          | 0.07 XRP        | Yes            |
| Top50%                    | Market creation/proposal/vote eligibility                                    | 50%             | No             |
| All                       | Escalated resolution eligibility                                             | 100%            | No             |
| Quorum                    | Minimum participation threshold                                              | 10%             | Yes            |
| Threshold                 | Supermajority requirement                                                    | >66.7%          | Yes            |
| bootstrapDuration         | Maximum bootstrap mode duration                                              | 12 months       | No (immutable) |
| bootstrapSignersRequired  | Number of signers required for early termination                             | 3               | No (immutable) |
| bootstrapMarketLimit      | Max markets per signer per day during bootstrap                              | 5               | Yes            |
| bootstrapProposalLimit    | Max proposals per signer per day during bootstrap                            | 10              | Yes            |