Breeding Fee Adjustment & Axie Economics

In 24 hours, we will update the Axie breeding fee!

  • The AXS cost per breed has been reduced from 2 AXS to 1 AXS.

  • The SLP costs per breed have been increased to the following: 

The growth of the Axie Infinity community has been incredible, thanks to each and every one of your contributions.  We value your commitment to our community, and we want you to feel a sense of ownership of what we’ve all built together.  Some of you have voiced confusion, worry, and even frustration with the current volatility of the economy.  We recognize that this volatility makes it hard for our community members to value their efforts consistently.  Hopefully by the end of this update, you’ll better understand that our occasional economic adjustments are our attempt to consistently reward skill and effort while balancing community/player growth. 

Let’s start with a couple of core Axie economic concepts:

  1. The only way SLP can be created is through gameplay. Each SLP is the result of effort and skill.

  1. The only way Axie can be created is by burning SLP. Each Axie is proof that a human played Axie Infinity for a certain amount of time.

  2. When there are new players to Axie, the only way they can play is if there are more Axies available than there are players. This means that we need to think about the future demand shocks to the Axie market and SLP when balancing the economy.

  3. Ensuring long-term sustainability for the economy will rely on a combination of player growth, new sources of demand for Axies, and external organizations subsidizing play-to-earn by sponsoring leaderboard seasons/tournaments & more. 

If you’re interested in diving deeper into our economic model, take a look at these two articles for further context:

Axie Population & Long-term Sustainability

Is Axie Infinity Sustainable?

The Axie economy needs to be balanced by rewarding everyone’s immediate efforts while supporting a long-term plan for community growth. There are some considerations that can be hard for some of our community members to grasp, especially if they’ve only recently started their Axie journey. Many players that are new to Axie have expectations of the in-game economy that are unrealistic and would not be conducive to long-term growth. Thanks in advance for your understanding as we learn together how to balance the economy in both the short and long-term.

Axie’s growth is cyclical which means we need to take into account both current and future demand for Axies when we make economic adjustments. While our veterans have seen these cycles many times before (such as when Axie prices dropped from .1 ETH to .002 ETH in 2019), it can be a bit unnerving for our new players.

Our growth projections for 2022 suggest that we will require tens of millions of Axies for the future on-boarding rush that we expect with the launch of our Ronin Dex and Battles V2. Historically, whenever we’ve launched features that have reduced friction and increased utility for Axies, we’ve seen a surge of breeding to account for the increased demand from Axies, from both new players and veterans alike.

If we don’t have enough SLP to meet this upcoming surge in demand, we will have a situation where the price of SLP surges very high initially to meet demand but then crashes back down as growth normalizes and more SLP is created by players. One could even argue that SLP issuance was too low in the pre-Ronin era, this created a massive surge in SLP price that was short lived and ultimately caused unrealistic expectations around the Axie economy.

All of that said, we don’t want this growth planning to disrupt your current efforts.  We’ve been looking at data around the Axie breeding economy for weeks now, and this is what we’ve observed:

  • Growth, while still strong, has been slowing down due to concerns over an imbalance in the amount of SLP minted versus burned per day.

  • Volatility in AXS and SLP price has caused large fluctuations in the breeding fee. 

  • AXS as a portion of the breeding fee has inflated which has taken away from SLP’s utility within our economy. AXS is now over 80% of the breeding fee.

Today’s breeding fee changes come as a result of these observations.  We know many of you are excited about this change.  We are still early in our journey, but we’re learning every day.

While we are currently making these changes manually, long-term we’d like to outsource management of the economy either to intelligent machines or informed members of the Axie community.  We hope to ultimately implement an auto-balancing system that will adjust the AXS and SLP portions of the breeding fee to be both stable in dollar/fiat terms and in relation to each other. This is a bit harder technically, but something that we hope to roll out in the future.  At least for now, as we experiment with creating a new digital economy, more active management from Sky Mavis may be required.

Questions?

🌟 Join Axie Discord

🌊 Axie Infinity FAQ

🛠️Axie Creator Guide

🗞️Axie Media Kit

* We’d like to give a shout-out to our friends at Delphi Digital for their assistance in thinking through these adjustments.

September Development Update

Key Points

  • Axie is the highest revenue generating application in all of crypto over the last 30 days.

  • We’re making great progress on AXS staking and the Ronin DEX.

  • Development on Battles v2 and land is also accelerating.

Axie is the first game owned by the community that plays it. This summer we shocked the world by planting our nation’s flag firmly in the history books. While we’ve seen incredible growth, now is not the time to get complacent.

Sky Mavis and our amazing community must continue to push forward and execute our vision. It’s not always going to be as smooth and easy as it’s been recently. There are going to be traps and pitfalls along the way, but if we stick together, we will continue to make history.

📈 Growth

The Axie nation continues to expand at a blistering pace. Let’s dive into the data:

  • The Axie protocol generated over 300 M USD over the last 30 days. This is more than everything out there except Ethereum. These fees are stored in the Community Treasury which will be owned and governed by all AXS holders.

30 Day Volume

  • Our player economy is larger than any other NFT project’s with more participants than the rest of the notable projects combined.

  • We now have over 1.5 M daily active players! Growth has slowed down a bit from the blistering levels of this summer. Part of this has been us waiting for a major server upgrade which will allow us to handle big growth numbers without experiencing server outages like we had in July. That said, there will also be times of slow/negative growth. This journey is not for the faint-hearted. We will keep pushing.

⚔️ Battles V2

Battles V2 (Axie Infinity: Origin) is an upcoming battle system that will introduce Axie to a brand new audience! Origin will be faster, more dynamic, and will allow people to test a demo of the game before making economic decisions.*This will make it even easier for our friends and family members that have never used crypto to fall in love with Axie!

We have our next internal launch deadline to release Origin to a group of our top battlers. We’re also working on our launch plans.

  • We’re working on the last chapter of PVE adventure mode with some of the concept art and enemy design finished.

  • The team is putting a lot of thought and effort into making the various chapter bosses unique and challenging.

  • Origin’s engineers are working on the PVP system. We will mix up and upgrade the season structure and expand it continuously through future patches.

  • Origin’s game designers are working on stats/abilities for the body parts/cards. We are doing our best to allow the cards to retain the spirit/concepts of their old versions but also add some new mechanics.

  • We’re thinking about how to add even more customization to team and deck-building.

  • We’ve finished about 70% of the new card art.

🌾 Land

The land team welcomed a new game designer to its ranks this month. Land is a fascinating project— there are so many directions it’s development can go:

  1. Crafting, building structures, and harvesting resources.

  2. An open amusement park like experience with many mini-games.

  3. A strategic battle between different armies for control of territory/resources.

The land team met to discuss the path forward and it was decided to focus on (1) and then flesh out (2) and (3) over time.

We’re also spending some time making sure that our new team members understand the economic properties of land and how they fit into our game economy.

🐦 Ronin & Other Updates

Ronin is our scaling solution for NFT games starting with Axie. It’s the most used Ethereum sidechain for NFTs.

  • Ronin now has over 1.5 B dollars in deposited assets.

  • The AXS staking contract is being audited.

  • We now have the design for the Ronin dex (Project X) completed. This is probably the most crucial aspect of our short-term roadmap.

  • We released a new products page as well as an on-boarding guide!

Questions?

🌟 Join Axie Discord

🌊 Axie Infinity FAQ

🛠️Axie Creator Guide

🗞️Axie Media Kit

* This free demo will have no ability to earn tokens as this would open up potential for abuse.

Axie Esports 2021: Event Schedule & AXS Distribution

Key Points:

  • The dedicated Axie Esports server is live and ready to host tournaments!

  • At least 31 tournaments have been approved, with the possibility of a few more events being added before the end of the year.

  • Access to the server will be limited by whitelist access for event participants, organizers, and commentators.

The dedicated server for Axie Esports has been deployed and is ready for an exciting season of competitive Axie!

Just one month ago, we committed 5,000 AXS from the play-to-earn allocation pool to directly support community-run tournaments through the end of the year. We asked for proposals, and the community delivered with over 250 submissions. This is an impressive amount of demand, much more than we expanded.

Originally we planned to green-light between 10 and 15 events; however, it quickly became clear that would not be sufficient to support the demand for this season.

Subsequently, we were able to expand our support to a total of 31 events, with 5560 AXS (currently worth about $370,000) spread across them. One of the most exciting aspects of this season is the diversity of events we were able to support, each of which will follow up with their own detailed announcements!

The first official event will be the Axie E1337 Open #2 and will start on August 21st.

Please see this link for the full calendar of events 👇👇👇

Event Schedule & AXS Distribution

As the season continues, we might add a few more events where possible, especially in December which is light for now. Stay tuned for updates on this as we evaluate the stability of the server in the new few weeks.

A few notes about the esports server:

  • The server requires whitelisting to be accessed and will only be available to tournament organizers and event participants.

  • Once whitelisted, players will have access to the server in perpetuity, unless we run into stability issues later in the season.

  • Casters / spectators on the esports server will have a forced 4 round delay when watching live matches.

  • Casters interested in covering these events will need to coordinate with specific tournament organizers to arrange access for coverage.

We couldn't be more excited about the community's enthusiasm for Axie Esports! We're very much looking forward to restoring the challenge system on the main servers later this year, which will open up events for all to run as they please.

Reminder: this dedicated server is a temporary solution for esports while we continue upgrading our primary game servers. Thanks for your patience on this!

Let's look forward to an epic season of Axie battles!

Join our community

⚔️ Axie Arena Season 18!

AXS Rewards + Economic Adjustments

Key Points

  • PVP season 18 is live with over 200,000 USD worth of AXS rewards!

  • Season 18 will be 50% longer than previous seasons and reward the top 1,000 players on the leaderboard.

  • We’ve adjusted SLP earning mechanisms by halving the SLP cap for adventure mode to 50 SLP, halving the daily quest completion bonus to 25 SLP, and making SLP rewards for PVP scale faster at higher ratings.

We’re delighted to kick off Season 18 of the Axie Infinity Alpha!

Join Our Community

Our season structure rewards you for climbing the leaderboard with boosted SLP drops and juicy AXS prizes. With AXS at around 40 USD, the seasonal rewards are over 200,000 USD! Due to our expanding user-base, we’ve expanded the AXS leaderboard rewards to the top 1,000 players. We’ve also increased the length of the season by 2 additional weeks. You can see the new distribution below:

🏦 Economic Adjustments

We’ve made some adjustments to the way SLP is earned in game.

• We’ve halved the amount of SLP an account can earn in PVE each day from 100 to 50.

• The reward for completing the daily quest has been halved from 50 to 25.

• PVP SLP rewards now increase at a steeper rate as a trainer’s rating improves.

These changes have been made with the long term health of the ecosystem in mind. Recently, the amount of SLP minted compared to the amount burned has been imbalanced.

In addition, many bots have started to abuse PVE since cards can be mindlessly played to complete most PVE levels.

⚔️ Arena For All

These changes will encourage trainers to push their mastery of the arena and ensure everyone is battling against competitors near their skill level.

By increasing arena rewards for skilled PVP play, great trainers will push their rankings as high as possible. The current system discourages this. When good battlers aren’t incentivized to try and increase their rating, many of them stay back at low levels to farm “noobs”. This makes the game less fun for everyone. It also means that new players have a hard time earning SLP from arena. The arena should be for everyone in our community, and we believe these changes will help ensure this.

As more casual players enter the arena and skilled players push their ratings, arena will become more fun for casual players. More casual players queuing will allow these new trainers to match with those at their skill level and have a more rewarding experience.

While we rarely comment on the scholarship system, we believe that these adjustments will put upward pressure on scholar wages for skilled battlers and reward managers that have put time into educating and training their scholars for the arena. Just like in the real world, higher pay must be a function of variable outcomes. Turning scholars into skilled workers is a step in this direction.

We will be carefully tracking the relationship between SLP earned through gameplay and SLP burned through breeding to see if additional action is required.

When we make these decisions we look carefully at different data points such as Axies bred per day, Axies per holder, new Axie holders per day, and Axie floor prices.

🔷 Axienomics

Long term we need to carefully use many different strategies to balance the economy. Here are some of the additional mechanisms in our policy toolkit:

Short Term

• Adjusting the AXS portion of the breeding fee. Lately the AXS portion of the breeding fee has gotten quite high and this is something that we are considering adjusting.

• Adjusting the amount of SLP needed to breed Axies. We may increase the amount of SLP required per breed in the future if burning and minting is still skewed towards oversupply of SLP.

We will appraise the need for further action based on the data produced over the coming weeks.

Long Term

• Launching our own decentralized exchange to attract greater liquidity for our in-game resources.

• An Axie sink that requires releasing Axies for crafting materials. These crafting materials could be used to upgrade land, Axie body parts, and land items. They could also be used to create consumables and buy/roll cosmetics.

• Releasing new features and Axie game modes that increase demand for Axies through access to new experiences and utility.

It’s been interesting to see the community suggest some of these long term adjustments over the last few weeks. Please keep in mind that they are entire new features that need to be launched very carefully and cannot be used as quick solutions.

If you’d like to learn more about the long term economy please visit the Whitepaper.

Questions?

🌟 Join Axie Discord

🌊 Axie Infinity FAQ

July Development Update

Key Points

  • In July, Axie was the top revenue-generating crypto protocol. We also became the #1 NFT project by all-time volume.

  • We’re making rapid progress on our roadmap and are preparing for a flurry of launches.

The Axie nation continued to shock the world in July. We reached new heights across all major metrics.

📈 Growth

Axie is the fastest growing game in the world right now. This growth caused some issues with the server, as our battle logic system failed to keep up with the surging number of players. We were ecstatic to resolve this issue within 10 days and learned a lot of great engineering lessons along the way! We are working on an entirely new game server as well.

  • The Axie protocol generated more fees in the last 30 days than any other crypto product, including Bitcoin and Ethereum. This demonstrates Axie’s incredible power to grow the entire crypto ecosystem.

  • Axie is the #1 NFT product by 30 day volume. By a lot. Axie is showing the unique value proposition of gaming assets versus collectibles and art. Axie also become the #1 NFT project by all time volume. Congrats everyone!

  • We crossed 800,000 DAU in July! At this rate, we’ll soon become the first NFT project to hit 1 million users! Each and every one of you has played such an important part in getting us to this moment. Let’s keep pushing.

⚔️ Battles V2

Battles V2 (Axie Infinity: Origin) is an upcoming battle system that will introduce Axie to a brand new audience! Sky Mavis is fortunate to have many different teams internally working on a variety of products. The Origin team is an independent team within Sky Mavis focused entirely on this update.

This month we:

  • Almost finished initial launch content for PVE adventure mode.

  • Worked on PVE tutorials.

  • Made progress on Axie card upgrades using in-game drops.

Next up, we’ll be working on ranked PVP mode and a quest system. We’ll then decide whether Origin is ready to welcome a new round of Alpha testers!

🌾 Land

Land is a highly anticipated experience centered around harvesting resources, building up a settlement, and fighting for control of territory.

This months progress:

  • We hired a new game designer that will join the land team in September.

  • We’ve started work on “seasons” for land gameplay. What kind of competitive features will work well on land?

  • Refined army control, decoration logic, and building management.

🐦 Ronin

Ronin is our scaling solution for NFT games starting with Axie. It’s the most used Ethereum sidechain for NFTs.

  • Ronin crossed 500 million USD in deposited assets.

  • The Ronin wallet crossed over 1 Million downloads!

  • We’re gearing up for a launch of AXS staking. Stay tuned! We won’t give an exact date as there are a few moving parts involved.

  • We released a revamped block explorer and upgraded the Ronin wallet.

  • Many of our community members do not have a bank account. We’re looking at ways to empower these players using Ronin wallet.

We’ve seen an increasing number of scams recently. Please go through the information on the infographic below carefully. In particular there are many fake Ronin wallets circulating. Always make sure you’re using the link we post through official channels.

Official Ronin Wallet

Questions?

🌟 Join Axie Discord

🌊 Axie Infinity FAQ

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