A simpler axiom for "induction" in untyped lambda calculus

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I'm working on a weird proof system involving reductions in the lambda calculus. I'm thinking of including the following axiom:

forall h q s y.


(λg → g g (q s)) (λ f x → h (f f ∘ q ∘ y) x)
===
(λg → g g s) (λ f x → h (f f ∘ y) (q x))

where is function composition (and has lower precedence than function application)

Are there some simpler axioms (possibly none at all) I could use instead from which this statement could be proven?

Is there a problem I don't see with making this an axiom?