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Axie Infinity Economics and Breeding Fee Adjustment

Anyone interested in blockchain or NFT gaming must have heard about Axie Infinity now. Axie Infinity is a play-to-earn-based game designed to create new monetary opportunities for players all around the world in a fun and decentralized environment. 

Axie Infinity, upon release, became so popular that its price rose significantly, which was much more than the game developers ever imagined. This sudden exponential growth raised several questions, the most important one being the future of Axie Infinity. To ensure a sustainable future for Axie Infinity, the game developers have adjusted the breeding fee by reducing it for AXS and increasing it for SLP. 

To understand how the breeding fee is changed, let’s first talk about Axie’s core economic concepts. Here are some main points about SLP and AXS that every player must know. 

  • SLP can only be created through gameplay using effort and skill. 
  • Axie can only be created by burning SLP, which acts as proof of the effort put in by a human.
  • New players can only enter the game if the number of Axie in the game is more than the number of players. 
  • A sustainable future can only be achieved if conditions such as player growth, new sources of demand for Axies, and external organizations subsidizing play-to-earn by sponsoring leaderboard tournaments and seasons are met. 

Breeding Fee Adjustment

To keep Axie Infinity sustainable, the company needs to develop a balance between rewarding player’s immediate efforts while working on a long-term plan for continuous growth. As previously mentioned, to onboard new players, the game must have enough Axies. The company estimates that next year they will need tens of millions of Axies to onboard the incoming of new players as they release Ronin Dex and Battles v2

Also, as Axies can only be created by burning SLP, the platform needs to maintain a significant SLP in-game. To do that, the company has proposed breeding fee adjustment as follow, 

The SLP costs per breed have been increased according to the following chart. 

While the SLP costs per breed have been increased, AXS cost per breed has been reduced from 2 AXS to 1 AXS. 

While the number might not give a clear idea, the crux of the situation is that playing Axie Infinity will become a little more costly and difficult than before, as players would now have to either put in a significant amount of time or money to grow. 

Learn more about Axie Infinity at https://axieinfinity.com/

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