Friday, March 24

The price of Axie Infinity tokens grows more than 32%

The value of Axie Infinity tokens has grown by more than 32%, following changes introduced by the game’s developers. After facing a period of economic uncertainty, the company behind Axie Infinity, Sky Mavis, has announced major changes to the blockchain game to ensure its economic footing. The company reported on its blog that it is restructuring the Axie Infinity rewards system. Sky Mavis wants to reduce the rewards given to players in SLP tokens, which will help reduce the daily supply of the token. Positions on the AXS leaderboard will increase to 300,000, to provide engaging and rewarding experiences for all players. The series of improvements being implemented in Axie Infinity will help Sky Mavis ensure a healthy gaming ecosystem. Currently, more than 3 million people from all over the world make up the Axie Infinity player community.

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Tokens Axie Infinity

As we have told in Blockchain Observatory, Axie Infinity has become much more than a digital game. Thanks to blockchain technology and mechanics “Play to Earn” (P2E), Axie Infinity allows its users to earn real money for the time they spend playing. To reward its users, Axie Infinity employs a dual token structure: AXS (Axie Infinity Shards) and SLP (Smooth Love Potion). Each of these tokens has its own characteristics and functions within the game. AXS, whose maximum supply is 270 million units, serves as governance. While SLP is an unlimited supply token used to reward Axie Infinity players.

The game structure and opportunities provided by Axie Infinity led it to become the most popular P2E blockchain game in the entire industry. Growing exponentially in a few months. However, as Sky Mavis points out, the euphoria of growth of this game was accompanied by a period of economic uncertainty, which began at the end of 2021.

An Investor pays $2.47 million for a digital land in the Axie Infinity metaverse

A drop of 97% for SLP and 58% for AXS

SLP has lost close to 97% of its value since its all-time high last November. In the case of AXS, the token is trading 58% below its all-time high reached in the same month. The massive drop in value of these tokens has been mainly caused by high SLP inflation. In a single day, 4 times more SLP is produced than is burned, Sky Mavis explained. Currently, the circulating supply of this token on the market exceeds 32.3 billion units.

Current emission vs current SLP burning

Current emission vs current SLP burning. Source: Axie Substack

Rebalancing for the Axie Infinity economy

To restructure and rebalance Axie Infinity’s in-game economy, Sky Mavis is devising various burn mechanisms for SLPs. One of them is to significantly reduce the daily rewards of users.

“We are looking at where we can strategically reduce the emission (of SLP) to balance the economy”Sky Mavis specified.

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Considering the proposals of the community, the company is eliminating the SLP rewards given to users for beating levels in the adventure mode. As he explains, about 40% of the SLP is created from adventure mode. Another 14% is generated by completing daily quests within the game. Something that the company is also changing. With these changes, the daily supply of SLP will be reduced by 54%.

Adventure mode and daily rewards were created to teach players how to use their axies and encourage their use. However, today they have become mechanisms for the massive issuance of SLP, the company notes.

Real Value Tokens

The restructuring of the rewards system will help Sky Mavis bring true value to users through their gaming tokens. As of the changes, the incentives will be given only to those who promote activities that improve the Axie Infinity ecosystem. Therefore, SLP tokens now reward the most skilled players in the arena, in Player vs. Player (PvP) mode.

Why did the value of AXS, Axie Infinity’s token, grow more than 100% in the last week?

More than 117,000 AXS to distribute in Season 20

Another big change that Sky Mavis is making is an increase in the AXS leaderboard. As the company points out, in Season 20, which starts in the next few days, Axie Infinity will increase the ranking number up to 300,000. Handing out a total of 117,616 AXS (about $8.4 million currently). This means that the top 300,000 Axie Infinity players will receive AXS rewards. Previously, the game gave out 3,000 AXS to the top 1,000 players.

Current AXS Leaderboard

Current AXS Leaderboard. Source: Axie Substack

The increase in the leaderboard and better rewards in AXS will increase the attractiveness and competitiveness in Axie Infinity, says Sky Mavis. For players with less experienced ax teams, the company prepares a reward of 1 SLP. It will be applied to all those players with less than 800 MMR (match creation rating) to encourage their learning and practice in the game.

Although the implemented changes are aggressive for many, the company points out that the current economy of Axie Infinity requires drastic and decisive actions to avoid a total collapse. In the future, the company plans new burning mechanisms for SLP and other important changes to further improve the economy of the game.

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Sky Mavis’s drastic measures to save the economy of Axie Infinity come just days after the launch of RON, the governance token of the Ronin network. On Twitter, various members of the community had been criticizing the company’s efforts to launch the new token as the value of AXS and especially SLP crashed in the market.

AXS and SLP recover more than 30%

The value of AXS and SLP have increased more than 38% and 32%, respectively, in the last few days. It seems that the changes announced by Sky Mavis are having a positive effect on the value of these digital assets in the short term.

AXS and SLP price in the market. Source: TradingView

AXS’s market cap is $4.8 billion, up 45% from $3.3 billion last week. SLP has increased its market capitalization by 55.8%, exceeding 437.9 million dollars currently.

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