- An expert has proffered solutions to Axie’s economic woes.
- He believes it could no longer continue to be a source of universal basic income if the status quo remains unchanged.
- Axie has risen to become the foremost Play To Earn game with millions of daily players.
A Twitter user, @vesakaxie, took to the microblogging platform to proffer a solution to the economic problems plaguing Axie Infinity. The user believes that the Axie Infinity economy has been hurt but can be salvaged.
You Can Not Please Everyone
@vesakaxie stated that Axie can no longer provide Universal Basic Income for everyone because of the underpinning economic travails in the ecosystem. The pundit said that it was a problematic assumption that he and the Axie team had believed before. He believes that the Axie economy has to be driven by skill and encourages users to spend more within the game.
According to the pundit, one of the most pressing goals is to make the burn rate greater than the mint rate of SLP. At the moment, the mint rate is about 3 times greater than the burn rate. In the analyst’s first step, he recommends that SLP rewards from PVE mode and daily quests be reduced to zero. The pundit concedes that this move is likely to shock players and lead to some leaving the platform, but he says that it is worth the rewards as those left would have more value for their assets.
In the second, he recommends that Axie remove the “800 MMR earning cap.” He suggests that “players should be able to win+earn with every Axie.” Next, he proposes a revamp of the energy system to cut down on SLP emissions, and instead of focusing on using multiple accounts and scholarships, the platform should “give every Axie utility by awarding 5 energy per Axie per day,” encouraging Axie purchases.
According to him, the economy would be stagnant at this point if this poor trend continues unchecked. To spark some growth, the pundit proposes an event that encourages players not just to purchase Axie and SLP but also to burn some Axie. As such, starting the economy on the road to making burns greater than minting. The pundit noted that this was a short-term solution and that something more long-term would require a more “reflexive mechanism” that balances these activities.
“The Axie economy is not permanently dead, but it is certainly wounded. The longer it takes for these changes to happen, the longer recovery will take, but I don’t expect the team to give up and let the game die. I hope to see changes in the upcoming weeks which will help,” he stated
The Rise Of Axie Infinity
Axie Infinity is the most popular play-to-earn NFT game in the ecosystem. During the pandemic, Axie Infinity gained popularity in the Philippines, where it allowed players to earn more than the minimum wage with daily users growing exponentially.
Axie Infinity’s launch in 2018 was not an immediate success, but the peculiar circumstances of the pandemic and the spike in blockchain games have pushed it to the top of the pack. At the moment, Axie Infinity has a market capitalization of $3 billion, with sales surpassing $1 billion.
Axie NFTs are owned by players in this game, and they can be resold or exchanged for incentives. However, getting into the game requires a sizable upfront payment. However, scholarships exist to reduce this entry barrier.