The papular metaverse coin Axie Infinity (AXS) is gaining 40% after taking steps to prevent “permanent economic collapse”. The leading NFT game has announced an update that will effectively reduce the creation of native Smooth Love Potion tokens by 56%.
This metaverse coin is climbing
The price of the Axie Infinity (AXS) token has increased by nearly 40% in three days. AXS has soared above its best level of $65 in over two weeks as Axie Infinity unveils a revamped reward structure for the player-versus-player (PVP) competitive round. In detail, the play-to-earn initiative has increased the number of leaderboard slots for the following season to 300,000 and increased the amount of AXS rewards to 117,676 from the previous 3,000. “This will strengthen the competitive Axie scene and create greater demand for quality Axie teams in the ecosystem,” Axie Infinity explained.
However, Axie Infinity uses a dual token structure. The other crypto, Smooth Love Potions (SLP), was given to players in exchange for completing daily quests and clearing levels in adventure mode. Additionally, players received SLP rewards through area combat in Axie Infinity. Axie Infinity has also eliminated the daily quest and adventure mode, meaning players will now only earn SLP tokens through area combat. The decision expects to reduce the daily SLP token supply by 56%. This is crucial as players burn SLPs to make old AXSs spawn new ones. Recently, the Axie Infinity team has created more SLPs than are burned through breeding to reward players. Unfortunately, this led to higher SLP inflation, causing the rate per token to drop from its summer 2021 high of $0.40 to $0.008 on February 3.
As a result, Axie Infinity eliminated paths that produced more SLP. The team noted that the daily task in principle encourages people to play every day, but at the same time adds a supply load of SLP 45 million to the Axie Infinity economy. “The Axie economy now requires firm and decisive action, or we risk a complete and permanent economic collapse,” AXS management said. This somewhat explains why the price of AXS increased by over 40% after the February 3 announcement of Axie Infinity.