‘Axie Infinity’ Caps SLP Token Supply—Can It Revitalize the Play-to-Earn Game?

Sky Mavis’ play-to-earn monster battling sport Axie Infinity has three completely different crypto tokens related to its ecosystem. Considered one of them, the reward token Easy Love Potion (SLP), is getting a significant rework as the sport makes an attempt to stabilize its incomes mannequin.

A provide cap has been established for SLP, limiting the overall variety of tokens to 44 billion, the Axie Infinity crew shared Wednesday. It isn’t a technical cap enforced by a brand new sensible contract that governs the token performance. As an alternative, Sky Mavis wrote, it is a “social contract” that will probably be enforced partly by means of metering in-game rewards to stay throughout the cap. At present, there are about 41.4 billion SLP in circulation.

SLP is Axie’s foremost in-game forex and could be earned by means of gameplay, whereas AXS is its governance token and RON is the gasoline (transaction payment) token of Axie’s Ronin blockchain, a gaming-centric Ethereum sidechain. 

The Axie Infinity crew hopes to carry SLP to a deflation fee of two%, and has established a “stability fund.” The crew guarantees so as to add 2 SLP to the fund for each 10 SLP burned, in accordance with the replace, and has already added 60,000 USDC to the fund to get it began. The soundness fund “programmatically buys SLP when inflation is larger than goal and sells SLP when inflation is decrease than focused,” in accordance with a weblog put up.

“The objective of this program is to create a gradual and constant supply of demand for SLP and steadiness provide with demand,” the crew mentioned within the put up.

SLP’s worth has risen roughly 8% over the previous day within the wake of this information, however stays down virtually 2% over the previous week, per CoinGecko knowledge. The token continues to be down greater than 99% from its 2021 peak, again when Axie Infinity caught fireplace and had hundreds of thousands of energetic gamers.

SLP could be earned by successful video games in Axie Infinity. However the crew has additionally launched a brand new sport mode, Premium Cursed Coliseum, the place gamers should pay a one-time payment of 150 SLP to enter, however can earn 50 SLP for 3 wins, 150 SLP for six wins, 300 SLP for 9 wins, and 750 SLP for 12 wins. Gamers who win 12 video games with out shedding a single match will obtain 3,000 SLP, in accordance with a put up.

In the end, 20% of these entry charges will probably be burned, whereas the rest will go to a progress fund—however that share might fluctuate on a month-to-month foundation going ahead, the crew mentioned. It’s additionally price noting that SLP earned from the brand new Coliseum mode can’t presently be withdrawn or cashed out, however the crew has acknowledged that this key function will change into accessible “throughout the subsequent month or two.”

First launched again in 2018, Axie Infinity noticed substantial progress in 2021 and early 2022, driving the preliminary growth in play-to-earn crypto video games and racking up billions of {dollars}’ price of NFT trades. However after SLP hit all-time highs within the spring and summer season of 2021, its worth crashed and has not returned to a worth even remotely near its prior highs since.

As the sport’s belongings shed worth in early 2022, Sky Mavis blamed SLP inflation as one of many key points with its play-to-earn economic system on the time, as greater than 4 occasions the SLP was being handed out each day than was being burned (or destroyed) by means of the Axie monster breeding course of.

Edited by Andrew Hayward