A quick overview on Axie Infinity
Every gamer’s desire is to make money playing video games, but in the conventional sector, only professionals can do this.
However, in the world of cryptocurrencies, things move quickly, and the foregoing is now achievable owing to the P2E (Play to Earn) business model.
The use of blockchain technology and non-fungible tokens (NFTs) in video games is allowing crypto fans and gamers to earn money by defeating other players or just playing against the environment. Learn more risks involved with nft play to earn games.
Axie Infinity is one of the most famous and well-known games in the industry. We’ll go through what Axie Infinity is, its history, and how to play it step by step in this tutorial.
What is Axie Infinity?
Axie Infinity is a popular Pokemon-inspired blockchain-based P2E game in which players gather virtual animals called Axies, which are represented by NFTs.
These animals may be gathered, bred, and sold for a fee based on their rarity. Their cost might vary from a few dollars to several hundred thousand dollars.
Who makes up the Axie Infinity team?
Trung Nguyen, a Vietnamese software engineer, founded Axie Infinity in 2017 after being inspired by the popularity of the renowned CryptoKitties, collectable NFT kittens kept on the Ethereum network.
Nguyen sought to incorporate all of the advantages of blockchain technology into video games, giving players actual ownership of the in-game objects they earned.
Sky Mavis, a tech-focused game company, is co-led by Nguyen. The team decided to build a Pokemon-style game utilizing the Ethereum blockchain after seeing the popularity of P2E games. Sky Mavis was valued at $3 billion in 2021 after raising $152 million, making it one of the top gaming firms in the world.
The Project Launch of Axie Infinity
Mark Cuban, Blocktower Capital, and Libertus were among the early investors in Axie Infinity, which launched in March 2018. But it wasn’t until Binance launched the AXS initial exchange offering (IEO) on its Launchpad in October 2020 that the AXS token caught the attention of the crypto community. At a cost of $0.1 per token, each winning lottery ticket got 2,000 AXS.
One year later, in October 2021, as the project’s popularity soared and the token price surged, each ticket was worth around $250,000, signifying an almost 125,000 percent rise in only one year.
Tokens of Axie Infinity: AXS and SLP Explained
Before we get into the game, let’s discuss about the Ronin Network and the two gaming tokens: Axie Infinity Shard (AXS) and Small Love Potion (SLP) (SLP).
So, why does Axie need two tokens, and what is the difference between them?
The Network: Take a look at the Ronin Sidechain.
The Ronin wallet is a Google Chrome and Firefox browser addon. It’s Sky Mavis’ Ronin sidechain’s digital wallet. Ronin is now available as an Android app.
The Axie Infinity metaverse’s Ronin ecology is created as a totality. It gives participants a more open economy and helps them to avoid the Ethereum network’s high gas prices.
Ronin is an Ethereum-linked sidechain with its own set of smart contracts that will allow players to move all in-game assets from the Ethereum blockchain to the Ronin blockchain, including Axie animals, land, and land products.
Ronin wallet is available as a Chrome or Firefox addon. Create a password for yourself. Make a note of your seed phrase (remember, you should never reveal your seed phrase with anybody) – after you’re ready, go to Chrome’s top right bar, choose extensions, and then choose Roning to access your wallet.
Important: Ronin may be used in conjunction with a Trezor hardware wallet, which is highly recommended for further security.
The SLP Token Explained
Small Love Potion (SLP) is, first and foremost, the token you get as a prize for each combat won in Axie. It may be used to breed Axie animals and then sell or auction them on the Axie Infinity Marketplace. Unlike AXS, the SLP token does not have a finite quantity.
SLP may be exchanged for other tokens on Katana, Axie Infinity’s decentralized exchange on the Ronin network. Anyone in the ecosystem may use the DEX to exchange in-game assets and other cryptocurrencies like wETH (wrapped Ether) and USD Coin (USDC).
The AXS Token Explained
AXS is an ERC-20 utility token in Axie Infinity that is awarded to the greatest players from each of the game’s 19 seasons. Due to the restricted availability of SLP, many gamers choose to switch to AXS. The Proof of Authority consensus technique is used, and Sky Mavis selects the validators.
- Holders of AXS have governance rights, which enable them to vote and make suggestions for governance. They may use their AXS to earn prizes and get access to different in-game features.
- AXS is used to fund the Community Treasury, which receives all of the game’s income. There are currently just two sources of revenue: 25% from Axie Marketplace purchases and the AXS part of the breeding charge. As soon as the network achieves a suitable degree of decentralization, the Treasury will be administered by AXS holders, enabling token holders to adjust or adopt new monetization schemes for the fund.
The AXS token distribution has a limited quantity of 270,000,000 tokens. For 65 months, the complete supply of AXS tokens will be released. The maximum amount of AXS that can be issued in the following years is shown below.
How Can I Purchase AXS Tokens?
Purchasing AXS is essential to the whole experience since it is required for the game’s economy and government, as well as providing a passive income stream.
As previously said, its limited supply is one of the reasons why many individuals are switching from SLP to AXS. AXS may be purchased in a variety of ways, including gaining exposure to the whole ecosystem, earning governance rights, and obtaining redistribution inflows. The coin may be purchased on a variety of centralized exchanges, including Binance, Huobi, FTX, Coinbase, Kraken, Bitfinex, and others.
This article goes far to discuss the token aspect of Axie Infinity. Here you’ll find the compatible tokens that go well with Axie Infinity.