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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:

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.

In practice, the maker multiplier is the key bootstrap incentive because it rewards users who post executable liquidity rather than just consuming it.

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 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 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.

Tokens deposited in vaults are not farmed through external strategies. They exist to secure governance and receive protocol-native yield.

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 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.

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