Axie Infinity Coins Go Crazy After Tokenomics Change
2 min read

Axie Infinity Coins Go Crazy After Tokenomics Change

By News Desk

Developers behind the wildly popular blockchain-based Axie Infinity game tweaked the tokenomics of their play-to-earn (P2E) ecosystem, sending related tokens on wild rallies.

Smooth Love Potion (SLP), one of Axie Infinity’s in-game tokens, was down almost 94% from its all-time high in the summer as it continued to suffer from out of control inflation.

SLP tokens, act as the main reward token for the game, and serve as a replacement for experience points. They can be used to “breed” new digital creatures called Axies which players of the game can create and battle.

The cost of breeding starts at 100 SLP but increases as you go — rising to 200 SLP for the second breed, 300 for the third, 500 for the fourth, 800 for the fifth and 1,300 for the sixth.

Image via Shutterstock

According to Axie Infinity developers, SLP was being created four times higher than it was being burned through breeding, putting constant downward pressure on it.

“As we discussed [previously], inflation of SLP has been very high, with around 4x more SLP being created (supplied) per day than burned (demanded) through breeding. As we are building more burn mechanisms… we are also looking at where we can strategically reduce issuance in order to balance the economy.”

The developers essentially eliminated multiple reward systems, drastically reducing the supply of SLP and putting intense upward pressure on its price.

Trading at $0.009 the day before the tokenomics revamp, SLP rallied all the way to $0.039 for a 337% gain in less than a week.

Ronin (RON), also involved in the Axie Infinity economy as it will eventually be used for gas fees and network security, enjoyed a 74% bump after the developers made their move. AXS, the native token behind Axie Infinity, currently is up over 34% in the last seven days with a market cap of $4,532,933,912.

AXS remains one of the flagship cryptocurrencies of the metaverse sector, putting in one of the most memorable performances of 2021. It’s up 51348.1% since its all-time low in November of 2020, while the video game continues to grow its already massive user base.

Newsletter Inline

Related Posts

FTX Exchange
Withdrawals not Halted at FTX: Instead Binance will Buy FTX
FTX Exchange

Withdrawals not Halted at FTX: Instead Binance will Buy FTX

November 9th, 2022 3 min read
OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
Binance partners with the weekend
Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour
Binance partners with the weekend

Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour

June 3, 2022 2 min read
21Shares Releases Sixth State of Crypto Report
21Shares Releases Sixth State of Crypto Report: Summary
21Shares Releases Sixth State of Crypto Report

21Shares Releases Sixth State of Crypto Report: Summary

June 2, 2022 3 min read
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

June 2, 2022 2 min read
Regulators are “Not Allowing” Banks to Engage with Crypto
Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto
Regulators are “Not Allowing” Banks to Engage with Crypto

Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto

June 1, 2022 2 min read
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution

US Conference of Mayors Introduces Blockchain Resolution

June 1, 2022 2 min read