SLP Price Surges 40% As Axie Infinity Reduces Token Supply

Time Stamp: February 8, 2022 3:52 PM
Source Node: 1168877

SLP price surges 40% with Axie Infinity reducing the token supply because without the changes, Axie risked a total and permanent economic collapse so let’s read further in our latest cryptocurrency news today.

The developers behind the popular blockchain game Axie Infinity will implement changes to the reward system to rebalance the project’s ecosystem and they will also reduce the supply of the Smooth Love Potion tokens by 56% making them more scarce. The play-to-earn model emerged as a trending niche towards the end of 2021 and the concept consists of two elements that captured society’s attention for entertainment and making money.

Axie Infinity is one of the leading names in the gaming universe and it is inspired by some popular games from the recent past like Tamagotchi and Pokemon. The game lets players collect, battle, breed, and trade creatures dubbed “axies.” The Gamers earn Smooth Love Potion tokens as rewards which can be redeemed for in-game features like breeding new creatures. The team behind the project said that they will reduce the issuance of the SLP tokens and after the announcement, SLP Price surges 40%:

“The daily quest, in principle, was great to encourage people to play every day, but it’s now become a mass emission mechanism for SLP. By removing the daily quest, we are able to reduce issuance by around 45 million SLP per day.”

slp token
SLP 24-hour Price Chart (Source: coingecko)

The developers described the update as a pain medicine that is necessary for the future progress of the game. With the upcoming changes, the supply of SLP tokens is expected to drop by another 56%. The economy requires drastic action or they can risk permanent economic collapse which will be far more painful. The team vowed to create a $6 million prize fund and to introduce changes to the game’s reward structure. In Season 19, Axie Infinity gave out 3000 AXS tokens to be gamers on the leaderboard and this reward increased to 117,676 for the top 300,000 players in the upcoming season. The team concluded:

“Put simply, we’ve prioritized growth and onboard millions. Without this approach, it’s likely that Axie would have remained a small, niche game with a few thousand players.”

Similar to other cryptocurrencies, the native token of Axie Infinity increased the USD Value during the past week and the price level is 30% higher than at the end of January but AXS is still far from the ATH of $160. SLP’s price increase is much more spectacular and after the news, the token surged by 40%.

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