Axie Infinity revamps token reward structure, AXS price surges 50%
- Axie Infinity price has jumped 50% after the firm revamped its reward structure.
- The play-to-earn firm is aiming to create more demand for Axie teams in the ecosystem.
- The new system will tackle the token inflation issue from its other token, SLP and potentially creating more demand for AXS.
Axie Infinity has recently revealed that it has made a change to its reward structure for its player vs. player competition round. Its native token, AXS price has recently surged by 50% following the announcement.
Axie Infinity takes step to avoid economic collapse
The play-to-earn firm has boosted the amount of AXS rewards from 3,000 to 117,676 for the next season, and increased its leaderboard slots to 300,000.
According to Axie Infinity, this move will “supercharge the competitive Axie scene and create more demand for quality Axie teams in the ecosystem.” The gaming startup also explained that this move will create a $6 million worth of prize pool for Season 20.
AXS, the native governance token for the Axie Infinity protocol is also used as the legal tender to purchase in-game non-fungible tokens (NFTs) from the Axie marketplace.
However, Axie Infinity also leverages a dual-token structure, with the cryptocurrency called Smooth Love Potions (SLP) used to award players for completing daily quests and clearing levels.
SLPs were burned by players to enable the in-game digital pets Axies to breed new ones. Given that the Axie Infinity team created more SLP to reward players than the tokens burned, inflation skyrocketed.
Axie Infinity has removed avenues that were generating more SLPs, as the daily quest encouraged players to be active everyday but this added a 45 million SLP supply burden in the Axie economy.
Axie Infinity stated that its economy “requires drastic and decisive action now or we risk total and permanent economic collapse.”
The upcoming Season 20 update will make SLP scarcer, making their Axies more valuable, potentially seeing Axie Infinity gain more traction among gamers and raising demand for AXS.
Axie Infinity price targets 37% ascent
Axie Infinity price may see a 37% climb toward $98 if a saucer formation on the 4-hour chart gets validated.
AXS may face resistance at the 38.2% Fibonacci retracement level at $71, coinciding with the neckline of the governing technical pattern, then at the 50% retracement level at $79.
AXS/USDT 4-hour chart
However, if selling pressure increases, AXS may fall toward the 200 four-hour Simple Moving Average (SMA) at $63 next.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
