SLP Price Skyrockets 40% as Axie Infinity Will Reduce Tokens Supply
The developers behind the popular play-to-earn blockchain game Axie Infinity will reportedly implement changes to its reward system to rebalance the project’s ecosystem. Specifically, they will reduce the supply of Smooth Love Potion (SLP) tokens by 56%, making them more scarce.
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The play-to-earn business model emerged as a trending niche towards the end of 2021. Its concept consists of two elements that have captured society’s attention for centuries – entertainment and making money.
Axie Infinity is one of the leading names in the play-to-earn universe. It’s inspired by some popular games from the recent past, including Pokémon and Tamagotchi. The game lets players collect, breed, battle, and trade creatures called “axies.” Gamers earn Smooth Love Potion (SLP) tokens as rewards, which can later be redeemed for in-game features such as breeding new creatures.
The team behind the project said they would reduce the issuance of Smooth Love Potion tokens:
“The daily quest, in principle, was great to encourage people to play every day, but it’s now become a mass emission mechanism for SLP. By removing the daily quest, we are able to reduce issuance by around 45 million SLP per day.”
The developers described the update as a “painful medicine,” which at the same time is necessary for the future progress of the game. With the upcoming changes, the supply of SLP tokens is expected to drop by up to 56%:
“The Axie economy requires drastic and decisive action now, or we risk total and permanent economic collapse. That would be far more painful.”
The team also vowed to create a $6 million prize fund and introduce changes to its games reward structure. In season 19, Axie Infinity gave out 3,000 AXS tokens to the best gamers on the leaderboard. This reward has increased to 117,676 for the top 300,000 players in the following season.
“Put simply, we’ve prioritized growth and onboard millions. Without this approach, it’s likely that Axie would have remained a small, niche game with a few thousand players,” the team concluded.
AXS And SLP Prices Started Climbing
Similar to most cryptocurrencies, the native token of Axie Infinity – AXS – significantly increased its USD value during the past several days. Its current price level ($64) is 30% higher than at the end of January. Still, AXS is far from its all-time high of nearly $160 registered last November.
SLP’s price increase is even more spectacular. Following the news, the token surged by a whopping 40%. before retracing back.
OhNoRipple via https://www.ohnocrypto.com/ @Dimitar Dzhondzhorov, @Khareem Sudlow