What Is Axelar Network (AXL) and Is It a Scam? Reviews, Opinions, and DYOR
This article delves into the legitimacy of the Axelar Network by evaluating several key factors. We examine the critical elements of the Axelar Network in order to figure our whether the project is legit or not.
What is Axelar Network?
The Axelar network is a blockchain platform designed to facilitate interoperability within the Web3 space, acting as a bridge between various blockchain systems. It offers a decentralized infrastructure and a set of tools aimed at enabling seamless interaction between decentralized application (dApp) developers, multiple blockchain environments, applications, and users, ensuring smooth cross-chain communication.
Axelar is built on a decentralized network managed by validators, along with secure gateway contracts, a consistent translation and routing framework, and software development kits (SDKs) and application programming interfaces (APIs).
In essence, Axelar simplifies cross-chain communication by making it as straightforward as web communication via HTTP/HTTPS protocols.
It allows blockchain platform creators to effortlessly integrate their systems with other blockchain ecosystems. Similarly, application developers can select the optimal blockchain for hosting their applications and leverage Axelar’s cross-chain communication protocols for asset management and inter-application interaction across different chains. By linking dApps with various blockchain ecosystems, Axelar enables users to directly access a wide range of applications through their wallets.
Axelar Network Reviews and Opinions: Reddit and X
Few reviews about Axelar have been encountered across both X and Reddit, Here are the highlights:
Source and Copyright: Reddit
There is a belief among some users on X that Axelar will eventually surpass Chainlink as the premier integration layer. This expectation is largely due to Axelar's efficient integration capabilities with Cosmos and the Inter-Blockchain Communication (IBC) protocol.
Community, Website, and Social Media Accounts
The Axelar Network has an active online presence across multiple platforms. On Telegram, the Axelar Network's account has attracted over 11,000 followers. This channel stands out for its vibrant activity, with a highly engaged community and admins who seem to respond in any users inquiries in a prompt and friendly manner.
On X, the network's account has garnered approximately 200,000 followers, including notable figures and influencers from the cryptocurrency sector. The account is very active, with frequent reposts and comments.
Moreover, their Discord channel has amassed more than 60,000 users. Similar to their other social media channels, the Discord community is exceptionally active, with administrators swiftly addressing inquiries, showcasing their commitment to maintaining a responsive and supportive community environment.
The Axelar Network's website serves as a comprehensive resource for anyone interested in learning more about the project. It provides detailed documentation for developers, the project's white paper, and a roadmap that outlines future plans and developments.
Notably, the website features an impressive array of partnerships, including collaborations with some of the most reputable names in the industry such as Polygon, Polkadot, dYdX, MetaMask, Sushi, PancakeSwap, Mastercard, Microsoft, J.P Morgan, and many others.
Founders and Investors of Axelar Network
Sergey Gorbunov and Georgios Vlachos co-founded the Axelar network. Both Sergey and Georgio were founding team members at Algorand. Sergey completed his PhD at MIT, where he focused on the development of sophisticated cryptographic protocols and systems. Prior to establishing Axelar, he held a position as an Assistant Professor at the University of Waterloo, with a specialization in cryptography, security, and Privacy.
Georgios Vlachos, the co-founder alongside Sergey, also has a distinguished background. Before Axelar, Georgios was engaged as a Research Scientist at Algorand.
The Axelar Network has successfully raised $35 million in funding from top-tier investors, including Coinbase Ventures, Morningstar Ventures, Dragonfly Capital, Binance Ventures, and Polychain Capital, among.
Axelar Tokenomics: Supply, Allocation, Use Case
AXL is the native token of the Axelar network. This token, which does not depend on any specific chain, is utilized for several purposes including governance, staking, paying for transaction fees, and facilitating liquidity. In the PoS network, validators are rewarded for their contributions towards securing the network. Governance-related matters address issues such as setting the basic inflation rate, rewards for different chains, limits on the rates of transfers, and adding new chains that are compatible with EVM.
Another Axelar token is wAXL. The version of AXL is compatible with ERC-20 and works across all chains compatible with EVM.
At the genesis block, one billion AXL tokens were created, with specific portions allocated to different stakeholders: 17% went to the Axelar team, 12.5% for company operations, 29.54% to early supporters, 5% for a sale in the community, and 35.96% for programs aimed at the community. Most of these tokens were locked at first, allowing for staking but not for transferring or spending during the lock period. The schedule for releasing these tokens varies across different groups, ranging from six months to four years.
Source and Copyright: Axelar Network
To encourage validators to facilitate connections with external chains, the Axelar network uses a system of inflationary rewards. This strategy has been effective in managing over $7 billion in volume across different chains.
Axelar Foundation has recently updated its tokenomics. These proposed updates aim at enhancing the utility and value of AXL as the network expands, potentially moving towards a deflationary trend in response to increased activity on the network.
Some of the suggested changes include adjusting the inflation rate, introducing a mechanism to burn gas fees previously given to validators and stakers to reduce the total supply of AXL, and increasing the demand for AXL by developing a more open method for integrating new chains. This new system will make it simpler for developers to connect new chains using templates for smart contracts and pools of rewards funded by AXL for validators.
AXL Current Price
The current AXL price $2,22 USD with a market cap of $1 306 798 430 USD. AXL token surged nearly 30 30% at the beginning of March 2024, after it has been listed on Binance. AXL has gained about 150% within a month and almost 150% in a year.
Source and Copyright:TradingView
Bottom Line: Is Axelar Network a Scam or Not?
The Axelar network has become a trusted platform among DeFi applications, DEXs, wallets, and business clients. This positive development path places Axelar in a leading position as a cross-chain platform within the web3 ecosystem.
Key aspects of Axelar's success include:
- Consistent security checks, with the network undergoing over 30 audits, in addition to a bug bounty program managed through Immunefi. Axelar has made all its contracts publicly available as open-source, allowing security professionals and white-hat hackers to examine and improve their safety.
- The network has successfully connected 54 chains, indicating a wider network reach compared to its competitors. Axelar boasts a notable list of partners, including some industry leaders.
- A commitment to transparency from the team and active engagement with a responsive community across various social media platforms.
Given these points, it seems that the Axelar Network is reliable, and we view it as a project with low risk, based on its established track record and the proactive measures it takes towards security and community involvement.
