‘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 group shared Wednesday. It is not a technical cap enforced by a brand new sensible contract that governs the token performance. As a substitute, Sky Mavis wrote, it is a “social contract” that will probably be enforced partly via metering in-game rewards to stay inside the cap. At present, there are about 41.4 billion SLP in circulation.
SLP is Axie’s fundamental in-game forex and might be earned via gameplay, whereas AXS is its governance token and RON is the fuel (transaction payment) token of Axie’s Ronin blockchain, a gaming-centric Ethereum sidechain.
The Axie Infinity group hopes to carry SLP to a deflation fee of two%, and has established a “stability fund.” The group guarantees so as to add 2 SLP to the fund for each 10 SLP burned, in keeping 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 increased than goal and sells SLP when inflation is decrease than focused,” in keeping with a weblog put up.
UPDATES TO $SLP Financial Coverage!
On account of a sudden winter frost, an important crop of key ingredient within the brewing of Easy Love Potion (SLP) has been destroyed.
• SLP provide is now capped at 44 billion!
• For each 10 SLP burned, 2 SLP will probably be added to a stability fund. We have now… pic.twitter.com/j0v4nsgq72— Axie Infinity (@AxieInfinity) January 11, 2024
“The aim of this program is to create a gradual and constant supply of demand for SLP and steadiness provide with demand,” the group stated within the put up.
SLP’s value has risen roughly 8% over the previous day within the wake of this information, however stays down nearly 2% over the previous week, per CoinGecko information. 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 lively gamers.
SLP might be earned by profitable video games in Axie Infinity. However the group 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 dropping a single match will obtain 3,000 SLP, in keeping with a put up.
Finally, 20% of these entry charges will probably be burned, whereas the rest will go to a development fund—however that share might fluctuate on a month-to-month foundation going ahead, the group stated. It’s additionally value noting that SLP earned from the brand new Coliseum mode can’t at present be withdrawn or cashed out, however the group has acknowledged that this key function will develop into accessible “inside the subsequent month or two.”
First launched again in 2018, Axie Infinity noticed substantial development in 2021 and early 2022, driving the preliminary growth in play-to-earn crypto video games and racking up billions of {dollars}’ value 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 value even remotely near its prior highs since.
As the sport’s property 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 instances the SLP was being handed out day by day than was being burned (or destroyed) via the Axie monster breeding course of.
Edited by Andrew Hayward
