Well, lets get some facts straight first, shall we.
-First of all Daxam is not a planet with kryptonians but daxamites. The N52 didn't bother giving a new explanation seeing that they altered Krypton history a little bit, but in the pre-N52 the story was this:
Along time ago in what was called Krypton golden age, where kryptonians started to expand their domain beyond their solar system, they conquered planets, built colonies and even met new species. One of those planets was Daxam. Also a planet orbiting a dwarf red star. Kryptonians met the natural inhabitants of that world that were physically very similar in looks to kryptonians, and not only that kryptonians found something they never encountered before. A species that they could mate and reproduce. But at the same time something was happening on Krypton. A feeling of unrest began to rise, for various reasons. The abuse of power, the starting of wars with other species, but mostly because of kryptonian genetic purity. All kryptonians were ordered back to Krypton. Most went willingly, some of them did not. It was at that same time that the original Eradicator was modified/created to serve kryptonian laws by one of Superman ancestors named Kem-El. Kem-El was a hard defender of kryptonian laws and most of all, genetic purity. So when certain kryptonians refused to return, the Eradicator and the forces that were put at its disposal were given the task of bringing back every stray kryptonian. But on Daxam the Eradicator found something that it never encountered before. A colony of mixed beings, both daxamite and kryptonian. Safe to say the Eradicator saw that has the biggest threat to kryptonian genetic purity so all kryptonians that didn't surrendered were killed, and because the Eradicator saw the daxamite/kryptonian hybrids has an aberration it gave them a fatal genetic flaw. Led became lethal poison to daxamites, even more so when they have their powers activated by a more powerful class of star like our own.
So has you see, and you can get more information about this on the web, those who live on Daxam are not kryptonians, they're half-breeds, or to be more exact, they have kryptonian genes that were passed on to them by kryptonians through sexual mating. And strange has it may look and sound, under a yellow sun they're has powerful has a normal kryptonian, which shouldn't be the case, but DC wasn't known at the time for being very accurate about genetics and lots of other stuff.
These stories date back from the 80's and 90's, so don't be surprised.
-About the yellow sun. It was and still is red, but it was turned yellow for a short period of time by a daxamite green lantern (Sodam Yat), possessor of the power of Ion the willpower entity. Because Daxam had been invaded by the Sinestro Corps at the command of Mongul and the only way for him to save his people, was to enter the red star and use the Ion power to turn the red star into a yellow star. But this was then, it was later on returned to red again when the rogue Oan guardian Krona removed the Ion entity from Sodam Yat.
And this my friend is basicaly everything you need to know about Daxam, and the legacy of Krypton left behind in their genes.
Hope this helps you out.
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