Axie Infinity was one of the top-earning deFi applications that housed one of the most valuable NFT collections back in 2021 and 2022. A Genesis plot of land (NFT) in the game once sold for a staggering US $1.5 million. Remarkably, Axie Infinity even provided employment opportunities for many individuals, particularly in the Philippines, during the peak of the hype in 2022.
Axie Infinity, developed by Sky Mavis, is a blockchain-based game that employs a play-to-earn model. Players are rewarded with Ethereum-based cryptocurrencies, Axie Infinity Shard ($AXS) and Smooth Love Potion ($SLP), for their in-game activities. To start earning in Axie Infinity, players need to purchase three ‘Axies,’ which are Pokémon-like NFTs. However, there is also a free version available where players can enjoy the game – without the play-to-earn mechanics.
To start playing Axie Infinity with the potential to earn cryptocurrencies, you need to purchase three Axies. Axies are unique digital creatures – in the form of NFTs – which can be bought on secondary marketplaces like OpenSea, but it is more commonly recommended to purchase them directly on the Axie Infinity Marketplace.
That being said, Axie Infinity: Origin does offer a free-to-play version; but in order to earn cryptocurrencies – purchasing 3 Axies is required (which does incur some upfront costs).
As of 2024, the cost to build a competitive team of three Axies in Axie Infinity varies significantly but is much cheaper than previous years. While the cheapest Axies, known as “floor priced Axies,” can be found for $5 to $30 each, they are usually not strong enough for effective gameplay. For a more competitive and effective team, the typical cost is around $300, with each Axie averaging about $100.
Players earn experience points by winning battles, which allows them to level up and evolve their Axies, increasing their value. Additionally, Axies can be bred to produce unique offspring (more NFTs) that can either be used in the game or sold on marketplaces like OpenSea.
Players can earn Smooth Love Potion (SLP) – a cryptocurrency by winning battles in Ranked Arena mode. SLP is part of the play-to-earn model and can be sold on decentralized exchanges for a range of different cryptocurrencies including stablecoins.
Additionally, players can earn Axie Infinity Shards (AXS) – the game’s governance token – by participating in various activities within the Axie Infinity ecosystem.
AXS tokens help democratize changes to the game and enable holders to influence the allocation of funds in the Axie Community Treasury. The Axie Community Treasury is the funds that are pooled from a portion of the game’s revenue – which come from fees and other in-game transactions.
Now that we have a basic understanding of how Axie Infinity works, let’s delve into the unique blockchain features the game leverages.
Cryptocurrencies Within Axie Infinity: AXS & SLP
AXS (Axie Infinity Shards) is a governance token that allows holders to vote on game development and resource allocation from the Axie Community Treasury. SLP (Smooth Love Potion) is earned by winning battles in Ranked Arena mode and can be sold on decentralized exchanges or used to breed Axies.
AXS serves a similar purpose to the MANA token, which is used in another metaverse based game known as Decentraland; in both games, the weight of each vote is proportional to the amount of tokens the voter holds.
A more detailed guide on these two cryptocurrencies can be found here.
NFTs within Axie Infinity: Land & Axies
Axie Infinity uses NFTs for both its Axies and in-game land. Axies are unique digital pets that players can breed, battle, and trade. Each Axie is an NFT, which ensures individual ownership and rarity. In-game land, also represented as NFTs, allows players to build structures, gather resources, and host events in the game.
Landowners can develop their plots by building structures, gathering resources, and hosting events, which adds strategic depth to gameplay and encourages community interaction.
This system enhances the in-game economy, as developed land can increase in value and be sold or traded on the marketplace. Additionally, owning land provides potential financial benefits through resource production and other in-game activities, making it a valuable long-term investment within the game’s ecosystem.
The Axie Infinity Blockchain: Ronin
Ronin, a sidechain specifically designed for Axie Infinity, reduces transaction fees and increases speed, making it more cost-effective for players to trade, breed, and battle Axies. The blockchain integration supports the game’s play-to-earn model by ensuring secure, fast, and affordable transactions, fostering a sustainable and scalable ecosystem.
Ronin is an Ethereum-linked sidechain developed specifically for Axie Infinity by Sky Mavis. It addresses the limitations of the Ethereum network, such as high gas fees and slow transaction speeds, which can be prohibitive for many players.
In fact, Axie Infinity was originally built on and had all transactions take place on the Ethereum blockchain.
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