Axie Infinity is a groundbreaking blockchain-based game, blending the allure of cute, battle-ready monsters with the financial incentives of the play-to-earn model. Drawing inspiration from franchises like Pokemon and Tamagotchi, Axie Infinity leverages non-fungible tokens (NFTs) to represent a vast array of unique creatures, abilities, and virtual assets. It is set in a vibrant metaverse and runs on the Ethereum blockchain.
The game also utilises Ronin, which is a specialised sidechain developed by Sky Mavis. It circumvents the high transaction fees and slow processing times often associated with the Ethereum network. By operating on this sidechain, Axie Infinity enjoys the robust security and functionality of Ethereum while offering a smoother and more affordable gaming experience. Players engage in strategic battles, earning rewards and contributing to the game’s ecosystem through the Axie marketplace.
Founding and vision
Axie Infinity was brought into existence by Trung Nguyen, a visionary entrepreneur with a passion for gaming and blockchain technology. As the CEO of Sky Mavis, a Vietnamese gaming studio, Nguyen aimed to merge the immersive world of gaming with the groundbreaking potential of blockchain technology. This ambition led to the creation of Axie Infinity, a game that not only entertains but also offers its players the opportunity to earn through play. Sky Mavis, under Nguyen’s leadership, has been instrumental in developing Axie Infinity into the behemoth it is today. The studio’s commitment to innovation and quality has propelled Axie Infinity to the forefront of the play-to-earn movement.
The journey of Axie Infinity from a novel concept to a thriving ecosystem was also fueled by strategic funding rounds. Over the years, Sky Mavis has attracted investment from several high-profile investors, including Blocktower Capital and billionaire entrepreneur Mark Cuban. The funding has been pivotal in scaling the Axie Infinity universe. It enabled the team to enhance the game’s infrastructure, develop new features, and expand its reach to a global audience. The financial backing also supported the development of the Ronin sidechain, a critical component in addressing the scalability and transaction cost challenges associated with the Ethereum blockchain.
Tokenomics: AXS and SLP
The economic model of Axie Infinity is built around two primary tokens: Axie Infinity Shards ($AXS) and Smooth Love Potions ($SLP). These tokens play distinct roles within the game’s ecosystem, driving both governance and gameplay.
- AXS – Governance Token: $AXS acts as the governance token of Axie Infinity, allowing holders to participate in key decisions affecting the game’s future. As an ERC-20 token, $AXS represents a significant innovation in game development, decentralising decision-making and aligning the interests of developers and players. Holders can stake their $AXS to earn rewards, further incentivising active participation in the game’s governance.
- SLP – Reward Token: $SLP, initially known as Small Love Potion, serves as the game’s primary reward mechanism. Players earn $SLP through gameplay, which they can use for breeding new Axies or trade on decentralised exchanges. Unlike $AXS, $SLP has an uncapped supply, leading to concerns about its long-term value stability. Sky Mavis has adjusted $SLP’s emission rates to manage these concerns, with future changes potentially guided by community governance.
- Economic Balance: The dual-token system underpins Axie Infinity’s play-to-earn model, balancing incentivisation with economic sustainability. $AXS provides a long-term governance framework, while $SLP facilitates daily gameplay and breeding activities. This balance ensures that players are rewarded for their contributions to the ecosystem, whether through competitive play, breeding, or governance participation.
Gameplay mechanics
Axie Infinity’s gameplay is a rich tapestry of strategy, where players assemble teams of three Axies to engage in battles. Each Axie is a unique digital creature with specific traits that influence its performance in combat. The game hinges on understanding and leveraging these traits to outmanoeuvre opponents.
- Axie Stats: Axies possess four primary stats: Health, Morale, Skill, and Speed. Health determines an Axie’s survivability, Morale affects its critical strike chance, Skill boosts damage for combo attacks, and Speed dictates the turn order in battles. These stats are crucial for formulating battle strategies.
- Axie Classes: There are nine Axie classes, including six normal (Beast, Aquatic, Bird, Bug, Plant, Reptile) and three secret (Mech, Dawn, Dusk) classes. Each class has strengths and weaknesses against others, introducing a layer of strategy in class selection.
- Axie Body Parts: Beyond classes, each Axie features six body parts (ears, horns, eyes, mouth, back, tail), with most contributing unique abilities to the Axie’s arsenal. These abilities are vital for planning attack and defense strategies in battles.
- Earning through Battle: Winning battles in either Adventure or Arena modes rewards players with $SLP, a token that serves multiple purposes within the game’s ecosystem, including breeding new Axies.
Breeding and land ownership
Axie Infinity extends its gameplay into the realms of breeding and virtual land ownership, offering players additional layers of engagement and investment opportunities.
- Axie Breeding: Players can breed their Axies to create new offspring, inheriting traits from their parents. Breeding requires SLP and is limited to seven times per Axie to prevent inflation of the Axie population. The breeding process is strategic, with the potential to pass down desirable traits to produce stronger or rarer Axies.
- Land in Lunacia: The game world includes Lunacia, divided into 90,601 plots of land that players can own. These lands come in different rarities (common, rare, epic, mystic) and types (savanna, forest, arctic, mystic, genesis), each offering unique advantages. Landowners can customise their plots, build structures, and even generate passive income, adding a real estate investment dimension to the game.
Axie Infinity marketplace
The Axie Infinity Marketplace is a central hub for the game’s economic activities, where players buy, sell, and trade Axies, land plots, and other in-game assets. This marketplace is crucial for the game’s play-to-earn model, allowing players to monetize their gaming achievements and investments.
- Trading Axies: Players can trade their Axies in the marketplace, with each Axie’s value determined by its traits, rarity, and battle prowess. This system encourages players to breed and train valuable Axies for sale.
- Land Transactions: Besides Axies, players can buy and sell land plots in Lunacia. These transactions can be significant investments, as developed lands with strategic locations of rare resources can fetch higher prices.
- Marketplace Dynamics: The marketplace’s dynamics are influenced by the game’s popularity and the broader NFT market trends. High demand can lead to server strain, occasionally causing transaction delays or issues. In such cases, patience and persistence are advised, with potential troubleshooting steps including wallet reconnection or transaction retries.
