Share:
  • Team behind Axie Infinity is concerned about an "imbalance" in token issuance on its platform, takes measures to trigger growth.
  • Crypto finance group observes that gaming incentive economics are slowly adjusting to prevent large-scale selling from mercenary capital pools. 
  • To tackle imbalance, Axie Infinity plans to slash 'breeding fees' down to 1 AXS and increase the cost of SLP.

Faced by the challenge of stunted growth in its NFT gaming ecosystem, Axie Infinity has decided to cut the cost of breeding fees in half. Many observers, however, are concerned over changing gaming incentives in play-to-earn games. 

Axie Infinity tackles dropping SLP price and stunted growth by slashing breeding fees

The NFT-based online play-to-earn game Axie Infinity uses Ethereum-based cryptocurrencies Axie Infinity (AXS) and Smooth Love Potion (SLP). The game is currently a leader in the NFT gaming universe, and there are currently over 1.5 million active players worldwide.

In-game earnings are distributed in the form of AXS and SLP, tokens that can be bought, sold and traded. 

The platform has suffered stunted growth with the plunging SLP price. Axie Infinity team recently announced that it is updating its “breeding fees” and has concerns over an “imbalance” in token issuance. 

To fix the recognized issue, Axie Infinity has identified the need to increase SLP price in accordance with a new fee breakdown and reduced breeding fees by 50%. The announcement included concerns on the volatility of AXS and SLP. It states that large fluctuations in the breeding fees have taken away from SLP’s utility within the game’s economy. 

Amber Group, a leading crypto finance group has identified the changing trend in gaming economies. 

While revisions in fee structure are fairly common in crypto gaming, the community has not received the news of the update well. 

Andrew Bailey, assistant professor at Yale-NUS College, labeled Axie Infinity’s updated gaming economics as “ponzimonics.”

With new updates in its ecosystem, AXS price is struggling to recover. Pseudonymous cryptocurrency analyst and trader @CerbulBTC has predicted a correction in AXS price. 

The analyst has noted that AXS bounced 30% from its support, and there is a drop in trade volume. Axie Infinity token is holding well against the overall performance of altcoins in the cryptocurrency market. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

TRON price rallies to yearly high following burn of over $12.6 million tokens

TRON price rallies to yearly high following burn of over $12.6 million tokens

TRON fee revenue reached an all-time high of $1.758 million on February 20. TRON network burned over 12.62 million tokens on Tuesday, likely catalyzing the altcoin’s gains. TRON price hit a 2024 peak of $0.14048 on Wednesday and the altcoin is likely to rally higher. 

More TRON News

Ethereum price briefly touches $3,000 for third time in a week

Ethereum price briefly touches $3,000 for third time in a week

Ethereum price crossed $3,000 for the third time this week, resulting in euphoria among crypto market participants. On-chain intelligence firm Santiment noted that traders bought Ethereum at the local top, above $3,000, out of the Fear Of Missing Out (FOMO).

More Ethereum News

XRP price suffers pullback with latest update in SEC v. Ripple lawsuit

XRP price suffers pullback with latest update in SEC v. Ripple lawsuit

XRP price dropped below $0.55 on Thursday as both Ripple and SEC work on remedy-related briefs. March 13 is the next key deadline for the SEC v. Ripple lawsuit. The court will determine penalties for Ripple’s institutional sales of XRP by the April 29 deadline. 

More Ripple News

Polygon inflation ends, MATIC price primed for explosive growth?

Polygon inflation ends, MATIC price primed for explosive growth?

Polygon’s Foundation contract shelled out the last remaining 273 million MATIC tokens on Wednesday, marking the end of the vesting period. This development means that there are no more tokens to unlock i.,e all of the MATIC tokens ever minted are now in circulation.

More Polygon News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP