The Community Treasury: An Overview

With the recent launch of AXS, we think it makes sense to dive a bit deeper into one crucial aspect of the Axie ecosystem, the Community Treasury.

The Treasury is at the heart of the feedback loop that drives AXS demand within our ecosystem. Let’s dive in and learn more!

Fees & Primary Sales

Once it’s live, 100% of all fees and primary sales from the Axie universe will be deposited in the Treasury.

The Axie ecosystem has a variety of different fees.

For now, there is a 4.25% marketplace fee as well as a .005 ETH fee for breeding Axies. Over the last 30 days, these fees have totaled over 400 ETH.

Here’s how to track this:

  1. This is the Ethereum-based Axie marketplace contract. If you go to the analytics tab you’ll be able to see the Marketplace fees accumulate over time.

  2. This is the Axie breeding contract. You can track the fees over time just like with the marketplace contract.

  3. To track fees from land and item sales, you can use Axieworld.com’s land volume chart.

Let’s calculate the hypothetical accrual to the Treasury over the period of October 23rd - November 23rd. Please note that this is only hypothetical as the Treasury is not live yet.

In the last month, there was 4838.8 ETH in Axie sales and 1,429.7 ETH in land/item sales. This gives us 6,268.52 ETH in total marketplace volume. 4.25% of this is 266.4 ETH. Lastly, the breeding contract shows us that 161.45 ETH was spent breeding Axies in the last month.

This means that if the Community Treasury were live, 266.4 + 161.455= 427.855 ETH would have been deposited just from the last month of activity.

Keep in mind that this is more fees generated than many of the products and networks in the CoinGecko top 20.

Use of the Treasury

The Community Treasury will create a base value for the AXS token. Why? Since the treasury will eventually be governed by AXS holders, the minimum market cap for AXS will be influenced by the size of the Treasury. For example, if there were 5,000 ETH in the Treasury, it wouldn’t make sense for the circulating market cap of AXS to be significantly lower than this since over time, this will be distributed back to stakers. To kick this process off, Delphi Digital has proposed sending 5% of the Community Treasury to stakers each week. Besides fee-sharing, here are some additional factors that will effect the value of AXS.

  • Monetary premium for AXS.

  • Additional utility such as marketplace fee discounts and access to certain exclusive sales.

  • Use of the community Treasury. For example, the Treasury funds could be seen as a sovereign wealth fund for the Axie universe. Fund managers or systems such as YFI could be appointed to grow the value of the assets stored inside the Treasury

Scaling Treasury Inflows

Once the Treasury is live, it’s likely that the Axie community will eventually turn its eye towards new monetization strategies.

Here are a few potential paths:

  • Revenue from cosmetic sales. While skins for parts could be harder to introduce, things like rare pets, skins for summons, and animations could be a hit. 

  • Axie tattoos & emotes. Rare emotes would be awesome for things like the arena and land play.

  • Licensing cuts from 3rd party content built on top of Axie.

  • Tournament entry fees and tickets.

  • Marketing fees from other organizations. Rather than donating tokens to “seasons” as partners have done in the past, sponsors can directly put assets into the Treasury. These contributions can be distributed through a lottery format to stakers/voters.

Staking Rewards

A portion of staking issuance will also be directed towards the Community Treasury. This percentage starts high at 35% and gradually tapers off over time. Here’s a a nice overview of how staking and the Treasury interact from Delphi Digital:

“AXS stakers earn both staking and Treasury yield. Staking yield consists of funds that move from the Axie staking multi-sig directly to stakers. Treasury yield consists of funds that move out of the Treasury to stakers. The underlying Treasury funds are made up of AXS tokens sent to the Treasury (from staking issuance) and exogenous network revenue(stablecoins and ETH). Over the 5 years, we suggest sending staking issuance to the Community Treasury starting at 35% in year 1 and scaling down to 30%, 25%, 20%, and finally 15% in year 5. With these values, AXS stakers still earn an attractive base yield in the early years and an attractive Treasury yield in the latter years. The logic here is that exogenous cash flows should makeup more of AXS staking yield as the Axie ecosystem matures. Based on projections, total yield (base + Treasury) should sit ~40% across the first five years.”

Keep in mind that in order to achieve max rewards, stakers will be required to perform some type of work such as playing the game. These work requirements themselves may be something determined by governance over time.

Conclusion

The Community Treasury promises to be a powerful force within the Axie community by accruing value and distributing it to AXS stakers. If we fulfill our goal of ensuring that AXS is held and staked by a diverse and representative cross section of the Axie community, then the Treasury will act as a unifying force that drives the ecosystem forward for years and perhaps generations to come.

Still have questions?

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AXS Strategic Sale!

We’re ecstatic to announce that Axie Infinity, has raised $860,000 through a strategic sale of our governance token, AXS, led by Delphi Digital. The terms can be seen here.

Other investors include:

  • Arca

  • Three Arrows Capital

  • DeFiance Capital

  • DeFi Capital

  • Sparq Ventures

  • Animoca Brands

  • Hashed

  • Dialectic

as well as angel investors:

  • Alexander John Amsel

  • Alex Svanevik (Nansen)

  • Bashylok Oleksander

AXS holders will shape the future of Axie Infinity by signaling their support for upgrades to the ecosystem and direct the usage of a Community Treasury. AXS was designed by Delphi Digital, while we provided the initial principles driving the token.

Here are some quotes from our all-star cast of investors!

"Our team has had the pleasure of knowing Aleks, Jiho, and the Axie team since they had just 20 users. It's been incredible to see them grind these past few years through the bear market and emerge on the other side with one of the strongest and loyal communities in crypto. We believe they'll be looked at as pioneers of the NFT and Crypto Gaming sector in the years to come."

Anil, Co-founder, Delphi Digital

"Axie has been building relentlessly since 2018 and we are impressed by their execution so far. Their vision of combining NFT, gaming and DeFi together is extremely exciting. We are thrilled to see Axie continue to be at the forefront of innovation in NFT gaming and DeFi space and are proud to support them."

Arthur0x, Defiance Capital

"With the emergence of digital collectibles and the necessity for scarce assets in today’s economic climate, we believe that NFTs represent some of the biggest opportunities in the digital assets space. Axie Infinity and Axie Infinity Shards (AXS) offer a pure-play way to gain exposure to the potential growth of the NFT ecosystem as well as the burgeoning gaming sector of digital assets."

Katie Talati, Head of Research, Ar.ca

We made our first investment in Sky Mavis back in early 2019, based on our belief that Axie has great potential to open up the next era of Cryptogaming. We believe that the combination of PVP battle contents, Play to Earn, and Land(Virtual world) is a winning combination that will make Axie a household name. We couldn't be more thrilled to see what's coming next in Axie world.

Ethan Kim Kyuntae, Partner, Hashed

"We are very excited to continue to invest in the Axie Infinity Ecosystem. Axie is a combination of an incredibly fun and unique game, a governance token that accrues value and a collection of scarce NFTs that range from Axies to Lands that enable a compelling Nash-equilibrium between different actors. Axie is the first game to unleash the power of crypto-assets to augment gameplay and create significant in-game opportunities for fun and profit."

Ryan Zurrer, Dialectic

About Axie Infinity

Axie Infinity is a Pokémon-inspired universe where players can earn tokens while battling & collecting fierce fantasy pets.

While Axie is a fun game, it's also taken on characteristics of a social network and jobs platform due to the strong community and economic opportunities for players that have come from its early success.

Axie is the #1 Ethereum game by daily, weekly, and monthly active users.

Still have questions?

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Axie Infinity Integrates Chainlink Oracles!

This is an announcement we’ve been looking forward to for many months now.

Today, we’re proud to share that we’ve completed integration of Chainlink decentralized price feeds! In addition, we’ll be using Chainlink Verifiable Randomness Function (VRF) to introduce provably fair random elements into the Axie universe, starting first with Axie Origin Coins (AOC).

What is Chainlink?

Chainlink is the market-leading decentralized oracle network providing real-world data to smart contracts on any blockchain. It allows dApps like Axie Infinity to consume data from outside the Blockchain, such as data from web APIs, premium data providers, IoT networks, enterprise backends, and more. 

Website | Twitter | Reddit | YouTube | Telegram | Events | GitHub | Price Feeds | DeFi

What is Axie Infinity?

Axies are fierce creatures that love to battle, build, and hunt for treasure!

‌Players can build up a collection of Axies and use them across an ever expanding universe of games!

Axie Infinity is currently the #1 game on Ethereum, with over 14,000 monthly on-chain users, and over 11,000 daily off-chain users.

We recently launched our native token, AXS, which uses governance and fee sharing to align incentives between all members of the Axie ecosystem.

Want to learn more? Join Axie Discord to meet our amazing community!

Integration details

As the first step in our collaboration, Axie has integrated the Chainlink ETH/USD Price Reference Data feed into our marketplace. This price feed serves as a very important exchange rate to ensure that marketplace users have accurate prices when making a purchasing and listing decision. In addition, mainstream users find USD price feeds more familiar so its important for adoption that we get this right.

Currently, we’re getting our price feeds from centralized servers which can go down and be disrupted. With Chainlink price feeds, we can ensure 100% uptime for our marketplace’s all-important ETH/USD price feed. We feel confident integrating this key exchange rate via Chainlink because it’s secured by a decentralized network of high-quality oracle nodes that provide accurate price data sourced from a variety of excellent off-chain data aggregators.

In addition, we’ll be using Chainlink VRF for the generation of Origin Axies from Axie Origin Coins (AOC)! The number of Origin Axies in the game is capped at 4088. Each time 5 AOC are burned, an Origin Axie is born with a chance of possessing Mystic parts. The chance of an Axie possessing Mystic parts when they’re born from AOC will soon rely on the VRF! 

This is an incredibly important task considering the scarcity of Mystic Axies is central to their value. In fact, a Mystic Axie just sold for 300 ETH and the event was covered by CoinTelegraph! Talk about famous digital pets.

We selected Chainlink VRF because it provides a highly secure source of randomness that is permissionless and auditable on-chain by all users. This provides users with cryptographic proof that all random elements are provably fair, and cannot be manipulated by our team or any external entities. 

The Future of Axie Infinity and Chainlink

Once Ronin, our Ethereum sidechain, is live, we’ll explore integrating Chainlink VRF functionality into more Axie-related smart contracts. 

Chainlink also makes a host of fun features possible because it provides access to any off-chain API. We believe we have only scratched the surface in how external data can be incorporated in Axie to enhance gameplay and the user experience.

Finally, we’d like to formally invite the Chainlink Marines to start playing Axie! Special thanks to @ChainlinkGod for his work educating us on the benefits of integrating Chainlink feeds into our ecosystem!

If you’d like to start playing Axie, the best first step is to join our Discord community!

Still have questions?

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October Development Update!

$AXS, Aave Collab, Land, Battles, Ronin!

What a month October was! We hit new highs for monthly growth across all metrics. Battlers, traders, holders, and volume all skyrocketed as the world continues to wake up to our revolution.

The big news of the month was related to AXS, our governance token, which is now live on Binance and Uniswap! Behind the scenes, we made significant progress on land gameplay, our new battle system, and Ronin. Let’s dive in.

Growth and Adoption

October saw our NFT Marketplace put up stunning numbers. 4,018 ETH volume came from Axie sales while item and land sales totaled 2572 ETH. This combined for a cumulative monthly NFT volume of 6,090 ETH. Remember that 4.25% of this volume is taken as fees. This means that if the Community Treasury were live, 280 ETH would have been deposited in the Treasury, just from the marketplace sales! This demonstrates how all AXS holders are incentivized to help grow the game and scale trading volume.

The number of Axie holders ballooned 43% from 9,419 holders to 13,499. Zooming out, we crossed 5,000 Axie holders on July 7th and currently have 15,332. That’s 206% growth in 4 months!

Monthly active users crossed 9,000 for the first time in October, after starting the month at 5,500. Our organic, community-driven approach is working and our movement is gaining momentum rapidly. On November 8th, we crossed 10,000 monthly users— a major milestone.

We saw many notable sales on the marketplace during October including a record breaking sale of triple mystic Axie, angel for 300 ETH!

Axie continues to gain new allies as we welcome the AAVE team to the community. They are sponsoring Season 13 with AAVE rewards and we’ve designed a special AAVE-themed item which you can claim here.

Land

October saw massive progress on the land gameplay front. We’re starting to see the a unified and interlocking system emerge and we can’t wait to share with you! Here’s an overview of what happened:

  • Axies can now harvest resources and craft tools

  • Resources can now be crafted into furniture

  • Major performance and art upgrades

  • There is now a “town hall” structure that acts as a central place for resource and item storage, learning new blueprints, and viewing craftable furniture

  • Implemented hot keys for increased control of Axies and plots

  • Added a tutorial with directions for controls and hot keys

  • Chimera now spawn on the map

Right now, Axies have their own specific inventories, which is a bit confusing. We’re thinking about solutions to this.

Battles V2

We’re currently working on a major upgrade to the Axie battle system! Here’s what we did this month:

  • Defined the mobile vs. desktop view

  • Added new attack animations

  • Prepared for a release to the entire Sky Mavis team (~25 members).

  • Implemented new card art

  • Added a new background scene

  • Started work on a tutorial

  • Adjusted the layout for how cards are shown in a hand

  • Added talents— class-specific bonuses that can be customized

Scaling

Progress on Ronin, our sidechain for Axie Infinity, continued this month. Much of the progress continues to be around wallet development and validator recruitment/education:

  • Progress on transaction tracking for the Ronin wallet

  • Refined our wallet feature wishlist

  • Enhanced validator on-boarding documentation

  • Implemented wallet signing.

  • Continued optimization of our block explorer

That’s it for now! See you in Discord!

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Play Axie, Earn AAVE!

Season 13 is live!

Season 13 is here! As a special spooky treat, our friends at Aave are sponsoring the Season with 120 AAVE tokens! That’s worth over 6,000 USD based on current prices!

Thanks to sponsors like Aave, our experiments with play to earn mechanics are getting larger over time!

Join the Axie Community

Upgraded Reward Structure & Season Duration

The Axie community is booming— the number of Axie holders increased by ~50% in the last 30 days! To accommodate this, we’ve quadrupled the number of positions that qualify for leaderboard rewards from 50 to 200.

In addition, we’ve significantly boosted leaderboard rewards by retiring the random token drops. These drops resulted in too much dust, meaning that a hefty chunk of the rewards were not being claimed. We’re always looking to refine our mechanics to better serve the community and believe this system does a much better job!

We’ve doubled the length of the Season to nearly 1 month. Season 13 will end on Saturday, December 6th at 9 AM EST.

Please note that each human is eligible for 1 leaderboard reward. Any attempts to abuse the system will result in swift bans from Sky Mavis* products.

Axie PvP Advice

With the expanded leaderboard, Season 13 is a great time to get more involved with the Axie PvP scene!

Axie.zone is an awesome site for new trainers to look up team compositions and the most popular cards at the top of the ladder!

Energy Used for Adventure Mode

As a final note, Adventure Mode (PVE) levels will now consume energy. 1 battle will use 1 energy. After all energy is consumed, Axies will stop gaining experience. The 100 SLP cap per day is not effected, so even without energy you’ll still be able to earn SLP from adventure if you’re below the daily limit.

Still have questions?

📜 Axie Infinity Whitepaper

🌟 Join Axie Discord

🌊 Axie Infinity FAQ

* Sky Mavis are the core developers of the Axie Infinity ecosystem.

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