Axie Infinity Economic Balancing Adjustments: Long $SLP
- Axie Infinity is planning an economic model overhaul in Season 20 to address the continued decline in $SLP price.
- Specific initiatives include removing $SLP rewards from daily quests and PvE adventure mode, changing the reward structure in PvP mode, and adding new usage for $SLP
On February 4, 2022, Axie Infinity released its latest update log, which begins with a reference to the "period of economic instability" experienced in recent months. The price of Smooth Love Potion ($SLP), the major source of player income, has been declining for the past seven months, with players' earnings decreasing as the price of $SLP falls, and the main reason for the price drop is that $SLP created is much more than $SLP burned.
According to Nansen, in the past few months, $SLP's output consumption ratio averaged over 3x per day, with a high of 4x. The main reason for the imbalance is that there are multiple channels for $SLP production, but only one way, Breeding Fee, can burn $SLP. The Axie team tried to increase the burn of $SLP by adjusting the ratio of $SLP to $AXS in Breeding Fee but still failed to stop the decline of $SLP price.
In the Update Log, the Axie team reported that 44% of the SLP production comes from PvP, 40% from PvE adventure mode, and the remaining 16% from daily quests. To address the impact of low SLP prices on the game's ecosystem, Axie has announced several changes.
- First, $SLP production will be reduced across the board: players will no longer be able to earn SLP from Adventure mode, and $SLP rewards for daily quests will be removed
- Changing the $SLP production model in PvP mode to award SLP based on a player's Match Making Rating (MMR) in winning matches, with higher MMRs yielding higher $SLP rewards
- Adjusted PvP season ranking rewards to incentivize players to participate in PvP battles, expanding the reward range from the top 1,000 players to the top 300,000 and increasing the number of rewards $AXS from 3,000 to nearly 120,000
- Increase the use of $SLP scenarios, Axie team plans to introduce Axie naming, skins, body part upgrades and other features in the future to increase SLP burned to maintain the balance of output consumption
Axie Infinity, one of the earliest developed blockchain games with the most active users, has inevitably encountered many problems on the way to development. The removal of daily quests and PvE mode rewards may also bring new questions or challenges, such as: will the high threshold of PvP mode lead to player churn? How will the loss of the daily quest affect the scholarship programs of game guilds like YGG? We don't know the answers yet, but it shows that the Axie team is planning for the long term, and it gives players confidence that $SLP is up over 25% in 24 hours as of this writing. In 2022, I hope to see even better blockchain games leading the market, and I hope that this "old" game with 3 million players will be brilliant again.
Token Information: Axie Infinity(AXS) / Smooth Love Potion(SLP)