- Axie converts treasury ETH into liquid staking derivatives.
- The novel delegation feature increases voter participation with safeguards.
- Limiting voting power to 10% prevents centralization of management.
Infinity Axia AIP-003 and voting delegation function activated in November 2025aiming to convert some of its funds into recurring income and facilitate participation for AXS holders. AIP-003 proposes to launch 2,829 ETH for liquid staking programswhile delegation aims to raise representativeness by safeguarding against the concentration of power. The combined approach aims for sustainable financing and more inclusive governance in the Axie ecosystem.
AIP-003 allows 2,829 ETH from the Axie vault to be deployed to liquid staking derivatives such as wstETH (Lido), rETH (Rocket Pool) and cbETH (Coinbase). Liquid staking is a mechanism that tokenizes rights to staking returns without locking up asset liquidity, allowing treasury to remain elastic when generating profits.
At an estimated APR of 2.4% per year, initiative projects generate approximately 67 ETH per year – approximately 200,000. dollars — intended to finance development, social initiatives and possible rewards for AXS players.
The operational impacts for treasuries and institutions include reducing the opportunity cost of idle assets and creating predictable income; however, this means dependence on the liquidity of staking in the derivatives markets and on the selected custodian protocols.
Voting delegation: participation with restrictions
App.ax’s novel voting delegation feature allows AXS holders to delegate voting rights to elected representatives. The tool aims to transform inaction into informed representation and improve decision quality by focusing analysis on specialized delegates. Voting delegation is an act of temporarily transferring voting rights to another entity acting on behalf of the entitled personallowing broader participation without requiring each holder to engage directly with each proposal.
To mitigate the risk of centralization, AIP-003 includes a 10% voting power cap on Lunacian and requires a 66% majority to approve the AIP itself. Additionally, any subsequent changes to staked ETH will require novel community-mandated AIPs retaining collective control of the funds. These restrictions are intended to prevent vast holders from taking over management and to raise the consensus threshold for high-impact decisionsbalancing efficiency with security.
For traders and risk managers, the staking strategy can influence the effective supply of ETH in the Axie ecosystem and modify market signals associated with the liquidity premiumwhile the governance structure will influence the speed and direction of future decisions regarding issuance, stock exchange listing or partnerships.
AIP-003 and delegated voting represent a pragmatic attempt to turn reserves into sustainable income and raise participation through delegated representationwith control mechanisms designed to reduce centralization.
