If you were to close your eyes, fall asleep, and wake up on July 6, 2016, you would rise to find that the price of bitcoin was trading between $670 and $681, the iPhone SE was the newest phone in town, and the soon-to-be-craze known as Pokémon GO was just being released. For many, this probably sounds like a lifetime ago. it is astonishing to think about how much technological change has occurred in six short years.
About one year later, in December 2017, the idea to combine aspects of the crypto universe with online gaming would come to life in the minds of the people at Vietnamese studio Sky Mavis.
In the article below, we’ll look at the online game known as Axie Infinity, discuss what it is, and talk about how it has been evolving since the start of development in 2017.
Axie Infinity Universe
Axie Infinity is an online game universe revolving around Pokémon-esque creatures known as Axies. Players can collect Axies as virtual pets with aspirations to battle, breed, collect, raise, and build kingdoms for their Axies. What makes Axie Infinity different from other online games is the synergy it has established between standard online gaming and blockchain. The Ethereum-based game utilizes a design that allows players to own their virtual assets and rewards players who are able to reach an advanced level of skill.
To get started, users need to work through a multistep setup process to connect digital wallets and their Axie Infinity account, which is all detailed in the game’s onboarding guide.
Once the accounts are successfully connected, the player can interact with the digital marketplace. To play, users need three Axies. Once the player has three Axies, they can download the application and start playing. There is a lot of nuance around the cost of an Axie since the average price that is paid fluctuates based on factors such as rarity, experience, attributes, and type. As of this writing, the least expensive Axies, known as “Floor Axies,” cost around $30. Floor Axies are often weak in battle and likely won’t be able to earn much for its owner. As of this writing, players can expect to pay a few hundred U.S. dollars for a usable team of Axies and upward of $1,000 for a rare Mystic Axie.
Non-Fungible Tokens (NFTs)
Axie Infinity is recognized as the leader in non-fungible token (NFT) gaming. In-game digital assets such as the Axie creatures are represented by NFTs. These cryptographically unique tokens, as discussed, confer ownership and allow the player to trade Axies on the game’s marketplace for real money.
In the realm of NFT projects, Axie Infinity holds the record for the third-highest all-time sales. As of March 2022, Axie Infinity generated $4.17 billion in all-time NFT sales, below OpenSea’s $23.21 billion and LooksRare’s reported $18 billion.
Play-to-Earn Business Model (P2E)
The play-to-earn (P2E) business model is new to the gaming industry. It is designed to reward participants who add value in certain ways to the game’s world or ecosystem. The basis of P2E is predominantly based on the freemium model, which means that it is free to get started and then the user can pay to add new features, content, or gear or simply to progress more quickly through the game.
As of late February 2022, Axie Infinity does not follow the typical free-to-play model since players are required to start with three Axies, but according to decrypt.co, the company is reportedly planning on releasing free in-game starter monsters to appeal to new users who aren’t ready to pay the premiums needed in the current model. Granted, starter monsters likely will not be able to earn the player much in terms of reward tokens, but the shift could open the game to an even wider audience.
Governance Tokens — Axie Infinity Shards ($AXS)
One of the most significant Ethereum tokens is known as ERC-20, which emerged as a technical standard used for all smart contracts on the Ethereum blockchain. While the details go beyond the scope of this article, it is relevant here because Axie Infinity Shards (AXS) are an ERC-20 governance token for the Axie Universe. It can be thought of as the native currency to the game, and holders can claim rewards if they stake their tokens, play the game, and participate in key governance votes.
As of Feb. 27, 2022, AXS has increased by more than 3,000% relative to the U.S. dollar over the past year.
The AXS tokens are an intentional move by Sky Mavis to decentralize the ownership and governance of Axie infinity so that it aligns the interests between the developers and the community of players who actually play the game.
Reward Tokens — Smooth Love Potion (SLP)
A Smooth Love Potion (SLP), formerly known as a small love potion, is a reward token within Axie Infinity that can be earned by players in certain ways by playing the game in battle or adventure mode. SLP is an ERC-20 utility token that carries a value like other cryptocurrencies and can be bought and sold on a decentralized exchange.
The value of an SLP relative to the U.S. dollar hasn’t performed so well compared to AXS and is down sharply over the past year. Unlike AXS, which has a supply cap of 270 million tokens, SLP has an uncapped number of tokens that could exist in the future.
The uncertainty around the future supply of SLP has greatly impacted its value, and concerns around its stability have caused many to question what will happen in the future. Sky Mavis has made some adjustments to the emission rate in recent months, and potential changes based on governance votes in the future likely will continue to drastically impact the value of SLP.
Virtual Land
Lunacia, the Axie homeland, is tokenized plots of virtual land called Terra. It will act as home bases of operation for players’ Axies. While the gameplay is still being actively developed, the idea behind these virtual plots is that players will be able to purchase, rent, and develop. Virtual landowners will be able to find AXS tokens on their plots, as well as different types of resources that spawn in nodes across Lunacia. Resources can be used to upgrade Axies and land. While the concept is still in early stages, the impact on the future of the game is endless and lays out a path for continued popularity into the future.16
Can I make money playing video games?
Yes. The play-to-earn (P2E) business model is new to the gaming industry and is designed to reward participants who add value in certain ways to the game’s world or ecosystem. In some cases, players sell access to their account credentials or game assets such as characters or gear. Top players also can earn income through streaming efforts, sponsorships, and product advertising.
What is a Smooth Love Potion?
A Smooth Love Potion (SLP), formerly known as a small love potion, is a reward token within Axie Infinity that can be earned by players in certain ways by playing the game in battle or adventure mode. SLP is used in conjunction with AXS tokens to breed Axies.
What are the top three non-fungible token (NFT) projects in terms of revenue?
According to DappRadar.com, in the realm of non-fungible token (NFT) projects, OpenSea holds the record for highest all-time sales with $23.5 billion. LooksRare reported $18.16 billion for second place, and Axie Infinity is third with $4.17 billion.9
The convergence of the crypto universe with online gaming in the form of Axie Infinity marks an interesting shift not only in the future of online gaming but also in the growing importance of digital ownership. For many, this game is their first foray into blockchain-based games or experiences. While there are still some challenges and uncertainties around blockchain-based experiences, it is noteworthy that such a project exists, and it is likely to have an impact on future trends. With the development of land-based gameplay on Lunacia, or the continued breeding of unique Axies, it will be interesting to see what the future holds for Axie Infinity.
