Updates to the Axie Infinity Ecosystem: Everything You Need to Know
Axie Infinity is the largest NFT game in the blockchain ecosystem. So far, the project has been massively successful and managed to sell over $2 Billion worth of Ethereum-based NFTs and amass 1.5 Million active players. However, in the past weeks the growth of Axie Infinity has seemed to slow down a little, and the dwindling SLP prices have left many investors concerned.
The recent updates to the Axie Infinity economy are intended to give the game a much needed boost – but how do they work exactly, and are they already impacting the AXS price in a positive way?
Play to Earn: the Key Motivation for the Axie Growth
Although Axie Infinity is already the largest NFT game on the market, the developers acknowledge that the project is still at a very early stage. At this point in Axie Infinity’s development, the most important thing is to get as many players into the ecosystem as possible.
In order to gain new players, Axie Infinity utilizes a play to earn model. 20% of the total supply of AXS tokens (54,000,000 AXS) has been locked for the purpose of play to earn issuance. These tokens will be gradually unlocked over a period of 4.5 years, and they can be earned by Axie Infinity players by competing in a variety of activities in the in-game world, such as winning tournaments, fighting in the arena, breeding Axies or trading on the Axie Infinity marketplace.
For many people, the opportunity to earn valuable tokens by playing a game is very attractive. However, this has caused an imbalance within the Axie Infinity economy.
Simply put, players became less and less interested in buying Smooth Love Potion (SLP) tokens and using them to breed Axies, which has stunted the growth of the Axie Infinity ecosystem. What’s even worse, high fluctuations in breeding cost have also contributed to the lowered utility of SLP tokens.