What is $MAX token?And how does Maxima platform utilise it?
Maxima is an innovative platform designed to host all functions of the existing horse-racing industry. It also opens up many opportunities and niches through emerging crypto applications such as NFTs and DeFi
At its core, Maxima takes real horses and assigns them to an NFT so the horse-racing industry can modernise, have access to more investors and capital. The ability to break up horse ownership into extremely small parts on the Maxima platform also makes this industry more accessible to the average person than before.
An NFT backed by a hard asset with real world utility, the ability to break up ownership into many small parts and the fact that royalties increase across the chain with resales represents the next step in NFT applications, but it is the Maxima $MAX token that makes the platform run.
The $MAX token is a utility, governance and spending token all in one. In this article you will learn the need to know information for $MAX, how it will be deployed and what its implications are for the rest of the Maxima ecosystem.
While the horses themselves are backed by NFTs, $MAX powers everything else, and everything else is driven by community interaction. There are many, many applications, and each presents opportunities and incentives to earn and use $MAX.
Understanding Maxima’s token types
Maxima will use 3 types of token:
ERC-721: for buying horses
ERC-1155: for buying stock in a horse as part of a syndicate
ERC-20: for $MAX usage
How the coin will function
Governance — $MAX’s function as a DAO governance coin allows you to get votes and deploy them for a say on platform development, individual horse management plus content and product roadmap influence. Votes can also be delegated.
Transactions — Along with ETH, $MAX can be use to bid at auctions — but unlike ETH, is subject to discounted prices in many areas, including transaction and platform fees. Trading racehorses, prize money from races, royalty payments for creators and auctions all happen in $MAX.
DeFi — Maxima also hosts its own DeFI functionality. Users will be able to stake $MAX in liquidity pools across Maxima and other platforms and will also be given rewards for doing so. This increases liquidity across the platform and adds revenue for users.
Profit Sharing — One thing that makes Maxima unique is its application of NFT features to allow royalties. This means that people can buy and sell stock in a horse and the original owner will still receive $MAX. It also means that when a horse wins a race, many people in the ecosystem will receive profit, seamlessly.
Community Participation — Community is the heart of the Maxima ecosystem and as such users are heavily incentivised to earn $MAX through engagement, whether it’s adoption of new tools, trading or otherwise. Users with higher levels of engagement will be given bonuses.
Metaverse applications — There are many applications, such as clubhouses, which are groups that can have their own $MAX swappable token or building and trading the actual lands of the Maxima metaverse. When horses retire, they will continue to compete in the metaverse.
There are many other ways in which $MAX can be earned:
- All transactions on Maxima use $MAX In traditional horse racing, trainers usually get around 10% of the purse for first, second or third place. On Maxima it will also be around 10% in $MAX tokens.
- Tokens can also be earned by achieving a high ranking in a tournament
- Token staking (also can earn unique NFTs)
- Various VIP drop rewards
- Exclusive Maxima offers
- Advertising and marketing fees will be in $MAX
- To allow cross platform adoption, other currencies will be able to trade in the Maxima marketplace, but $MAX tokens will be subject to discounts on transaction fees.
- for creators of every racehorse backed NFT on Maxima
- for buyers and sellers for confirmed transactions
- for Liquidity Pools supporting $MAX transactions
Brief section on rollout
$MAX will be distributed to incentivise community participation. In the beginning a lot of $MAX will be deployed as rewards in areas like customer acquisition as well as improved deals for early adopters.
The $MAX token ensures high liquidity and security across the entire Maxima platform. It also makes cross chain adoption easy. Combining a hard asset with NFT applications is breaking new ground, but profit sharing and royalty allocation, along with gamification, community building and governance is all made possible with a single coin. This all fits together with the nature and needs of both horse-racing and the worlds of NFT/DeFi and Metaverse.