How to live off Bitcoin Dividends
Why and how to buy Axion the smartest way to optimize for passive income in Bitcoin
— Things I wished I knew before investing —
Here is the summary of my now month long research into AXION, updated to this date. For it I watched a ton of their 2 hour long videos, read everything I could get my hands on, participated in their social media, asked loads of questions and got answers directly from the core team, so the info is legit, I hope you appreciate it. TL;DR = executive summary on the bottom :-)
You can buy Axion either from uniswap or from an auction. It makes sense to buy from an auction if you want to invest at least 1.5k value of USD (around 0,8 ETH right now). This is the same amount, where staking Axion starts to really make sense because of the current high transaction fees on the Ethereum network. If you buy on the auctions, you get a much better value out of it however and it makes a lot more sense to stake it, I’ll explain why.
The Auction
Since the word “auction” is a bit misleading, here is an explanation. In every auction there is a certain amount of Axion, that is sold out to all of the “bidders”. There has been an update about the workings of the auctions. So now it works like this.
At the start of the auction, the price of Axion on Uniswap is determined. When you bid on the auction, you bid a certain amount of Ethereum, which would get you a certain amount of Axion on uniswap. In the auction however, you get 10 % on top of that as a bonus.
The “catch” is, if the price on uniswap goes down more than 10 % during the runtime of the auction (24 hours), your bonus is “detroyed” by that price action, but only if you would have actually bought the dip at the exact right time at the right lower price. And if the fees on uniswap at that time wouldn’t also have offset your price arbitrage.
So I would just pick a good time with nice low gas fees, bid on the auction and rest assured that you got your bonus, and it gets even better than that.
There are two types of auctions: regular auctions and venture capital auctions (VCA).
The Venture Capital Auctions
Axion has started “Venture Capital Auctions” on March 12, they are being launched twice a week, every Tuesday and Friday. If you participate in the venture capital auctions, you would immediately get 10% of your bid in the form of Bitcoin (wBTC = wrapped Bitcoin, the Ethereum version of Bitcoin, worth the same as Bitcoin). In the future they will pay out a part of this 10 % immediate bonus in a second hot Altcoin, such as Trustswap for example, which Sheldon also recommends. You don’t have to do anything to get that 10 % bonus, it will be automatically sent to your wallet right after the auction ends.
After buying from a VCA, you have to stake (lock in with benefits) your Axion for at least (update!) 120 days, during which you also get the dividends and more Axion. During this time you will also have a glimpse of what Axion is for (long term staking) and will probably regret you bought from the VCA if you want to max out your benefits for the long term and max your dividends for passive income.
The Regular Auction
If you buy from a Regular Auction, you have more benefits:
1. You get your 10 % bonus in the form of more Axion
2. And, on top of that, if you use the following referral link, you will get another 10 % bonus on top of your initial 10 % Axion Bonus for a total of 20 % more Axion.
3. Staking Axion from the auction is cheaper than staking it from your wallet, because it is already on the Axion site.
All referral links are created equal, so there is no catch in using a particular one, but of course I’d be thankful if you use this one if you appreciate the info:
https://stake.axion.network/auction?ref=0xab446a212a1c2598e70e2e16543350ab3222cf4b
Why would you want more Axion instead of the immediate gain of getting Bitcoin from the auction? Here is the deal: Axion is a system that is designed for staking and long term benefits via a passive income, it is a revolutionary crypto “Certificate of Deposit”. It is designed to give you returns through the inevitable bear markets and to automatically “dollar cost average” (=regularly buy) into Bitcoin and other hot Altcoins.
Since I’m also invested in Axion, sharing this info actually hurts my long term benefits from it too, since all of the investors (especially the 15 years stakes) are sharing the same dividends pool. And the more of us share it, the less everybody gets. But I found a lot of value in the Sheldon and Axion community and by sharing the knowledge, through multiplier effects we will all benefit in the long run. So here is why staking Axion for longer is TRULY better.
1. You get Big Pay Days every year for up to 5 years. Basically these are airdrops of axion, if you stake at least 1/2/3/4/5 years. So if you stake Axion for 5 years, you get quite an increase of payout in Axion when your stake is over (when it “matures”).
2. By getting Big Pay Days, you get more shares of the total staking pool. Because this is how it works: the proceeds from every VCA go into a pool, and 85 % of this pool is used to buy Bitcoin and to pay it out to ALL Axion stakers every single time (so twice a week) according to your number of shares and thus to your percentage of this pool.
You can immediately have these proceeds paid out to your wallet and use them for whatever you want: spend them on buying stuff, buy more Axion, whatever. They have a cooperation with a credit card, so you will be able to spend the Bitcoin and other Altcoins and actually live from your Axion dividends. If you would like to check out, how much you could gain, go to
and play with the sliders, especially the one below with the checkbox that projects the future Axion price. Because here is the deal with Axion.
At the time of writing it has a market cap of only 46M USD. Its “big brother” project HEX reached around 2.2 BN USD and had an all time high of 5.4 BN USD — and it does NOT have the awesome functionality of VCAs, so of liquid dividends. In fact, no crypto currency or Certificate of Deposit has this functionality right now. So if Axion were to reach only a modest 1 BN USD in market cap, that’s a 23x from here. And that would bring us in the region of the 0.01 USD price that the calculator tops off right now.
Some are awaiting that Axion will reach that aim in about a year. And Axions marketing team is aiming to reach the “average people” who are not in crypto at all yet via Web Ads, Ads in the real world on Busses, Billboards etc. So if they manage to pull it off and really reach those people, the sky is the limit.
So all in all, the more Axion you get (by getting that 20 % bonus in Axion directly), the more you benefit from it long term, if you’re into passive income. And what do you want all the millions for really, to buy that Ferrari and dream house or to be financially independent, live from the dividends of your millions and really enjoy your time on earth? For me, it’s the latter. I only need so much that I can do whatever I want with my free time.
Why you should not be afraid to stake Axion for the full 15 years
Well, I was afraid, and at first I staked only half of it for 15 years, I then regretted it after learning more about the system and staked everything for the full duration.
If you do stake it that long, your shares of that Axion pool of dividends actually explode (4x). So you will get a lot more of those dividends each and every 3 days. In fact, you will get so many dividends, that your initial investment will pay off just from the dividends in a matter of (estimated) 8 months to 1,5 years.
But what do you do if Axion itself has appreciated in value 20–50x and you want to get out of staking and want that money now? First of all, watch out! If you unstake Axion early, there are HUGE penalties for doing so. You actually lose the exact percentage that represents the remaining time until your stake has been fulfilled. Example: you staked your axion for 15 years and after 7,5 years you want to unstake it, you lose 50 %. If you want to unstake the 15 years stake after just 1 year, you lose 93 % of your value in Axion in that case.
But are you really locked in for 15 years then and just have to sit on that pot of gold having turned it into passive income? (poor you!) ;-) No, because after 2–4 years Axion will start to offer you buy backs of your Axion fortune for a lower price of course, but still for a lot of money. When Axion buys it back, it will actually burn these stakes so everybody who stays on board, will get more shares of the total dividends pool :-) Also, institutional investors might offer you to buy your axion shares until then. Basically, you will be able to sell your Axion stakes prematurely as an NFT on a second market.
The price of AXN is the lowest you can get right now with 0.0003 USD. And why you also should not think too long about getting it if you want to stake it: they have built in a thing called “share rate”, which slowly but surely increases every hour (now at 1.1) until it will reach “3” in two years. The higher the share rate at the time of your staking, the less shares of the dividends pool you get. So it’s kind of the same mechanism as Bitcoin’s halving, which is responsible for these huge bull markets in crypto that we have every 4 years. But don’t worry, Axion is designed, so EVERY time is a good time to buy and stake Axion (but still, the earlier, the better).
And (update!) there is a promotion going on right now, which is pretty insane. If you buy Axion from an auction and stake it for 1 year, you get 6 percent more Axion. If you stake it for the full 15 years, you get 20 % more axion. And no, not just on top of those other 20 % that you get with the referral. But those 20 % become the new base for these extra 20 %, so in total you get 46 % more Axion, which takes you to a price of 0.0002 USD per Axion, which is almost the all time low.
Staking Tips
I’d buy at least around 1.5k USD worth and leave some ETH for staking (I bought twice that amount). After an update, the staking fees are not as high as they used to be anymore, but I’d still wait for gas prices of 80–90 gwei or lower, especially if you stake for 15 years . But the good thing is: you will get it back in dividends pretty soon. Try to stake on saturdays or sundays, when the gas prices are low.
Here is a gas tip: If you know you won’t trade anyways, just initiate the staking, then in metamask edit the fees to say 90 gwei or however low you think they will get and let it run. It will automatically execute when fees get as low as you set them. Important: do NOT edit the gas limit, only the gas price! This way, your transaction will not fail. If you at some point discover that you missed the execution and set the gas fees too low, you can “speed up” the transaction by setting it to a higher gas fee again and get your stake this way. You can also “cancel” your transaction (and speed up the cancellation for a really low few of a couple of USD) all together if you see gas fees not dropping to your desired level for a while.
Conclusion — Update
If you want to dive in deeper, try the 60 pages long white paper with all the maths, explanations etc. I could also write so much more about the Axion system:
- how they actually make those returns possible (human psychology, game theory, insurance probability mathematics, investing etc)
- how they learned and improved the system so much after having been hacked (got the smart contract reviewed by extremely credible companies that are usually contracted by IBM )
- how Axion is in so many ways better than it’s predecessor project, HEX, which really took off (liquid dividends, credit card, better tokenomics, DAO, and most importantly you’re still incredibly early in terms of price and share rate)
- how Sheldon Evans with over 500k subscribers will make a video on Axion with it’s updated system — this is publically available information from the Axion core team.
But so far, everything has become true — especially the dividends from the VCAs. And marketing is still in preparation, so this is a golden opportunity during this dip.
Executive Summary
TL;DR: So to summarize how to max out your full benefits for passive income and really go the smartest route: Buy Axion for at least 1,5k USD worth of ETH on a Regular Auction (every auction EXCEPT Tuesday and Friday) with this link to get 20 % more Axion. Stake it as long as you like, preferably full 15 years for a total of 46 % more Axion, promotion is running until 15 May 2021). Enjoy a return on your initial investment within around 1–1,5 years just from the dividends. Plus have the opportunity to get out of your 15 years-staking early (after 2–4 years) if you want/need the money earlier.
https://stake.axion.network/auction?ref=0xab446a212a1c2598e70e2e16543350ab3222cf4b
