Daxam is a former Kryptonian colonial outpost established during the Kryptonian expansion. The planet, following the genocide of its people and terraformation by Kryptonian World Engines, is now barren and devoid of life.
Around 18,000 years ago the Kryptonians began a period of expansion from their home world. The planet was picked as a settlement place due to its proximity to a red sun. Not long afterwards the first Kryptonian settlers landed on the planet and set up a colonial outpost.
Centuries later the policy on colonialism on Krypton was changed and all colonies were abandoned. After being abandoned and cut off from Krypton due to the newly established artificial population control, the resident inhabitants on this colony exhausted their own resources. As a result, they died out in isolation.
Serving the Sword of Rao
Millennia later after Krypton itself had been destroyed, General Dru-Zod led a small group of survivors through the universe seeking out the old colonial outposts in hopes of encountering any other Kryptonians. This eventually led them to Daxam. He found it full of nothing but Kryptonian remains. His forces took anything worth salvaging and then left the planet.