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Neoteny refers to the retention of larval characteristics in the adult stage of an organism. In the case of the axolotl, a type of salamander and member of the Amphibians class, neoteny is exhibited as the animal retains its external gills and finned tail throughout its entire life. This is a unique feature among amphibians, as most other species undergo metamorphosis and lose their larval traits as they mature into adults. In contrast, axolotls can remain in their aquatic environment indefinitely, exhibiting neoteny as a key characteristic of their adulthood.