Axie Infinity’s Journey: From Million-Billion User Base to Economic Twists and Turns

Massive User Growth Amid Economic Challenges

Since its launch in 2018, Axie Infinity has taken the gaming world by storm, attracting over 2 million daily active users. With its decentralized exchange, Katana, basking in a market cap of $5.5 billion, things looked like a continuous upward trajectory. But as they say, every cloud has a silver lining; or in this case, a storm cloud that rained down economic challenges.

Diving Deep into SLP: The Fall of Smooth Love Potion

Now, let’s talk about the elephant in the room: Smooth Love Potion (SLP). This in-game token has taken quite a nosedive, losing a whopping 93% of its value since reaching its all-time high of $0.39 on July 13, 2021. This dramatic decrease can be attributed to market inflation, which the team is bravely tackling by significantly cutting back on SLP issuance, much to the chagrin of token farmers.

Strategic Edge for Gamers and Guilds

What does this mean for players? With SLP becoming scarcer, gamers and guilds will need to sharpen their strategic skills to remain competitive. The implications are pretty straightforward: as the price of SLP increases due to enhanced scarcity, the cost to breed Axies will also rise. Yes, folks, welcome to the circle of economic life!

SLP Emission and the Game’s Economic Landscape

Consider the data: the SLP burn/mint ratio reveals a troubling imbalance, where emissions are four times the number of tokens being burnt. Over the last week, SLP’s price slid to below one cent. To combat this, Axie Infinity is set to roll out in-game modifications on February 10, coinciding with the launch of Season 20.

A New Focus on Competitive Play

As part of a bold move, starting February 9, Axie Infinity will stop issuing SLP for players who complete daily quests and those in adventure mode. This decision will cut down the daily mint by approximately 175 million SLP. In a game where nearly 84% of SLP comes from these activities, it’s a monumental change. But on brighter notes, the rewards for leaderboard players is set to increase enormously, ensuring that the top 300,000 players now have a chance to win AXS—up from just the top 1,000.

The Road Ahead: Community Engagement and Uncertain Impact

Will these changes lead to long-term success and sustainability? Only time will provide clarity. The Axie Infinity team is keenly aware of its community’s sentiments and has called for suggestions on improving economic conditions. As players weigh in with their perspectives, the team aims to put transparency at the forefront. It’s all hands on deck as players, investors, and content creators explore the future of Axie Infinity following these adjustments.