New Tokenomics for SLP Token to Boost Axie’s Play-to-Earn Experience
Axie Infinity, the play-to-earn game developed by Sky Mavis, is undergoing a substantial transformation, particularly with its Smooth Love Potion (SLP) token. This change introduces a fixed supply and a novel “stability fund”, aimed at reinforcing and revitalizing the in-game economy. These adjustments are part of a broader strategy to refine the game’s financial dynamics and enhance player engagement.
A crucial change announced by the Axie Infinity team is the establishment of a finite supply for the SLP token, capped at 44 billion. This announcement, made on a recent Wednesday, marks a departure from a purely technical enforcement through smart contracts. Instead, Sky Mavis opts for a “social contract” approach. This unique strategy involves regulating the distribution of in-game rewards to align with the new cap, ensuring a sustainable future for the token. As of now, the circulating supply of SLP stands at around 41.4 billion.
Price of SLP and tokenomics
SLP, the cornerstone of Axie Infinity’s in-game economy, is earned through gameplay. The ecosystem also includes the AXS governance token and RON, the transaction fee token on Axie’s Ronin blockchain, an Ethereum sidechain specifically designed for gaming purposes.
Aiming to achieve a deflation rate of 2% for SLP, the Axie Infinity team has instituted a “stability fund.” In this innovative approach, for every 10 SLP tokens burned in the game, 2 SLP tokens will be added to the fund. To kickstart this initiative, an initial investment of 60,000 USDC has been made. The fund’s role is to strategically buy SLP when its inflation exceeds the target and sell when it’s below, as detailed in a recent blog post by the team.
The overarching goal of this new policy is to foster a steady and balanced demand for SLP, ensuring a harmony between its supply and demand dynamics. This strategy is expected to create a more stabilized and appealing economic environment for both current players and potential newcomers.
Following these announcements, the SLP token witnessed an approximate 8% increase in value, though it still records a nearly 2% decrease over the previous week, and remains significantly lower than its 2021 peak. The SLP price currently hovers over $0.0034 on Gate.io.
SLP accrual is primarily through gameplay victories in Axie Infinity. Adding to the gameplay dynamics, the team has introduced the “Premium Cursed Coliseum”, a new game mode that requires a one-time entry fee of 150 SLP. This mode offers tiered rewards for consecutive wins, with a potential of earning up to 3,000 SLP for an impeccable run of 12 victories without a single loss. From these entry fees, 20% will be directed towards burning, contributing to the token’s deflation, while the rest supports a growth fund. This percentage for burning is subject to monthly revisions. The team has also noted that SLP earned in this new mode is initially non-withdrawable, but they anticipate enabling withdrawals within the upcoming one to two months.
Brief history of SLP
Since its inception in 2018, Axie Infinity has experienced a significant surge in popularity, particularly in 2021 and early 2022. The SLP craze made many players start farming the token by playing simultaneously on 5 or more devices. It spearheaded the play-to-earn crypto game movement, amassing billions in NFT trades. However, post its peak in mid-2021, the SLP token’s value drastically declined and has yet to show signs of returning to its former heights.
Early in 2022, the game faced challenges as its assets lost value. Sky Mavis identified SLP inflation as a critical issue plaguing the play-to-earn economy. The problem was attributed to the imbalance where the daily issuance of SLP was substantially greater than the amount being burned through in-game processes like the Axie monster breeding. This revamp aims to address these challenges, striving to bring a new era of stability and growth to Axie Infinity’s vibrant ecosystem.
Axie gameplay explained
Delving into the gameplay mechanics of Axie Infinity, it’s a digital pet universe where players breed, raise, and battle fantasy creatures called ‘Axies.’ Each Axie is a unique NFT (Non-Fungible Token) with different attributes and abilities. Players engage in tactical battles, either against computer-controlled Axies or those owned by other players. Strategy plays a crucial role, as each Axie has its strengths and weaknesses based on its class, body parts, and cards representing various moves. Beyond battling, players can breed their Axies, creating new offspring with potentially rare traits, which can then be sold or used in battles. This engaging mix of strategy, breeding, and trading underpins the play-to-earn model of Axie Infinity, allowing players to potentially earn cryptocurrency through skilled gameplay and savvy market activities.
In addition to the fundamental aspects already described, there are several other noteworthy features of Axie Infinity’s gameplay that contribute to its unique appeal:
Adventure Mode and Arena Mode: Axie Infinity offers two primary gameplay modes. In Adventure mode, players battle against AI-controlled enemies, which is a great way to earn experience points and level up Axies. Arena mode, on the other hand, pits players against each other in PvP (Player vs Player) battles, offering a more competitive experience where players can earn SLP based on their performance.
Land Gameplay: Axie Infinity features a virtual land system, known as Lunacia. Players can own, buy, and sell land plots, which can be developed and upgraded. These lands can yield resources and may offer strategic advantages in the game, adding another layer of depth to the Axie universe.
Energy System: The game incorporates an energy system that limits the number of times players can earn rewards from battles in a day. This system is designed to balance the game’s economy and make it fairer by preventing excessive farming of resources.
Scholarship Programs: A unique aspect of Axie Infinity is the emergence of scholarship programs, where players who own multiple Axies can lend them to other players (often referred to as scholars). This system enables new players to participate and earn without initially investing in Axies, while the Axie owners get a share of the earnings.
Seasonal Tournaments and Leaderboards: The game often hosts seasonal tournaments and maintains leaderboards, offering additional incentives for competitive play. These events often come with significant rewards, adding to the excitement and competitive nature of the game.
Community and Governance: Being part of a broader ecosystem, players in Axie Infinity can participate in community governance through the AXS token. This aspect of gameplay extends beyond the battles and breeding, allowing players to have a say in the development and direction of the game.
Special Events and Quests: The game frequently introduces special events and quests, offering unique challenges and the opportunity to earn rare items or bonuses. These events keep the gameplay experience fresh and engaging for the players.
These features, combined with the strategic depth of breeding and battling Axies, create a rich and immersive experience that goes beyond the typical play-to-earn model, making Axie Infinity a standout game in the blockchain gaming space when it first got released and with its further iterations.