Axie Infinity is a popular Pokemon-inspired, blockchain-based P2E game where players collect virtual creatures in the form of NFTs called Axies.
These creatures can be collected, bred, and sold at a price that depends on their rareness. Their price can range between a few dollars to hundreds of thousands of dollars.
Axie Infinity. Screenshot
Who is the Team Behind Axie Infinity?
The history of Axie Infinity spans back to 2017 and has to do with Trung Nguyen, a Vietnamese software developer who was thrilled with the success of the famous CryptoKitties, collectible NFT kittens stored on the Ethereum network.
Nguyen wanted to take advantage of all the benefits of blockchain technology and implement it into video games, giving players true ownership of the in-game items they collected.
Nguyen co-leads Sky Mavis, a tech-focused gaming studio. Witnessing the success of P2E games, the team decided to create a Pokemon-style game using the Ethereum blockchain. In 2021, the company raised $152 million – giving Sky Mavis a valuation of $3 billion, becoming one of the top gaming companies worldwide.
Axie Infinity’s Project Launch
Axie Infinity debuted in March 2018, hoarding capital from notable investors such as Mark Cuban, Blocktower Capital, and Libertus. But it wasn’t until October 2020 that the AXS token called the attention of the crypto community when Binance hosted the AXS initial exchange offering (IEO) on its Launchpad. Each winning lottery ticket received 2,000 AXS at the price of $0.1 per token.
Just one year later – during October 2021, after the project boomed in popularity and the token price skyrocketed, each ticket was worth roughly around $250,000, representing an increase of almost 125,000% in just one year.
Axie Infinity’s Tokens: AXS and SLP Explained
Before diving into the game itself, we need to talk about the Ronin Network and the two tokens related to the game: Axie Infinity Shard (AXS) and Small Love Potion (SLP).
So, why does Axie need two tokens, and what is the difference?
The Network: Meet the Ronin Sidechain
The Ronin wallet is a browser extension for Google Chrome and Firefox. It’s the digital wallet of Sky Mavis’ Ronin sidechain. Ronin also has an Android app.
Ronin is designed as a whole ecosystem for the Axie Infinity metaverse. It allows a more open economy for players and enables them to escape the elevated gas fees on the Ethereum network.
Ronin is an Ethereum-linked sidechain with its own set of smart contracts where users will be able to migrate all of the in-game assets, such as Axie creatures, land, and land items, from the Ethereum blockchain to the Ronin blockchain,
You can install Ronin wallet as an extension on Chrome or Firefox. Set up your – password make sure you write down your seed phrase (remember to never share your seed phrase with anyone) – once ready, you can access your wallet at the top right bar on Chrome by clicking extensions and choosing Roning.
Important: Ronin can be integrated with a Trezor hardware wallet, and it is recommended for increased security.
SLP Token Explained
First and foremost, Small Love Potion (SLP) is the token you receive as a reward for every battle won when playing Axie. It can be used to breed your Axie creatures and sell it at a set price or auction in the Axie Infinity Marketplace. The SLP token, unlike AXS, doesn’t have a limited supply.
SLP can be traded for other tokens on Katana, the decentralized exchange on the Ronin network, launched by Axie Infinity. The DEX is designed to allow anyone within the ecosystem to trade in-game assets and other cryptocurrencies, like wETH (wrapped Ether) and USD Coin (USDC).
AXS Token Explained
AXS is an ERC-20 utility token in Axie Infinity, and it’s given to the best players from all of the 19 seasons in the game as a reward. A lot of players also choose to swap their SLP for AXS due to its limited supply. The consensus algorithm is the Proof of Authority, and Sky Mavis chooses the validators.
AXS holders have governance rights, which allows them to vote and send governance proposals. They can stake their AXS to win rewards and access various in-game features.
AXS is used to instigate the Community Treasury, which receives all the revenues that the game generates. By now, there are only two streams of inflow: 25% from the Axie Marketplace transactions and the AXS share of the breeding fee.
The Treasury will eventually be governed by AXS holders as soon as the network reaches a sufficient