AXS, RON and SLP surge after Axie Infinity developers revamp the project’s tokenomics
Since launching in 2018, Axie Infinity has amassed over 2 million daily active users (DAUs) and its decentralized exchange, Katana has a market cap of $5.5 billion, but this growth has not come without challenges.
Axie Infinity’s in-game token, Smooth Love Potion (SLP) decreased nearly 93% from it's all-time high in July 13, 2021 of $0.39 as it faces uncontrollable inflation. As such, the team has announced it will significantly remove SLP issuance from the game, making it harder to farm.
Gamers and guilds will in turn focus their attention on their strategic competitive edge and the potential increase price of SLP will inevitably result in the increased price of Axies as the cost to breed would increase all the same.
According to data, SLP’s emission is over four times greater than the amount of tokens being burnt, which has resulted in its price plummeting to less than a cent in the last 7 days. However, the Axie Infinity team is tackling the economic imbalance with in-game modifications set to launch today at the start of Season 20.
Since announcing its plans of economic rebalancing, Axie Infinity's AXS governance token and its blockchain token, RON, have seen an uptick in price. Since the season went live, SLP is up nearly 24% in the last 24-hours.
Scaling and finding balance amid rapid growth is no easy feat, but could these economic rebalances prove to be profitable for users?
Starting on Feb. 9, Axie Infinity will no longer issue SLP for users playing in adventure mode and it will no longer reward users who have completed the daily quest. By removing these methods of token emission, the team is reducing the number of SLP minted daily by roughly 175 million SLP.
These two issuance mechanisms make up nearly 84% of
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