The developers behind the popular play-to-earn blockchain game Axie Infinity are reportedly implementing changes to its reward system to rebalance the project’s ecosystem. Specifically, they will reduce the supply of Smooth Love Potion (SLP) tokens by 56%, making them rarer.
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The play-to-earn business model emerged as a trending niche towards the end of 2021. Its concept consists of two elements that have captured society’s attention for centuries – entertainment and making money.
Axie Infinity is one of the leading names in the gaming universe to win. It’s inspired by some popular games from the recent past, including Pokémon and Tamagotchi. The game allows players to collect, breed, battle and trade creatures called “axies”. Players earn Smooth Love Potion (SLP) tokens as a reward, which can then be redeemed for in-game features such as breeding new creatures.
The team behind the project said they would reduce the issuance of Smooth Love Potion tokens:
“The daily quest, in principle, was great to encourage people to play every day, but it’s now become a mass emission mechanism for SLP. By removing the daily quest, we are able to reduce issuance by around 45 million SLP per day.”
The developers described the update as “painful medicine”, which is at the same time necessary for the future progress of the game. With the upcoming changes, the SLP token supply is expected to drop by up to 56%:
“The Axie economy requires drastic and decisive action now, or we risk total and permanent economic collapse. That would be far more painful.”
The team has also pledged to create a $6 million prize fund and introduce changes to its game rewards structure. In Season 19, Axie Infinity gave away 3,000 AXS Tokens to the top ranked players. This reward increased to 117,676 for the top 300,000 players in the following season.
“Put simply, we’ve prioritized growth and onboard millions. Without this approach, it’s likely that Axie would have remained a small, niche game with a few thousand players,” the team concluded.
AXS and SLP prices have started to climb
Similar to most cryptocurrencies, Axie Infinity’s native token – AXS – has increased its USD value significantly over the past few days. Its current price level ($64) is 30% higher than at the end of January. Still, AXS is a far cry from its all-time high of nearly $160 set last November.
SLP’s price increase is even more spectacular. Following the news, the token surged by a whopping 40%. before retracing back.
