Axie Infinity developers to reduce SLP’s token supply by 56%
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Popular blockchain gaming platform, Axie Infinity, has announced it is making changes to its reward system. The developers noted that these changes were necessary to prevent “a total and permanent economic collapse.”
The change to be implemented involves reducing the supply of Smooth Love Potion (SLP). The supply will be lowered by 56%.
Axie Infinity developers propose changes
Axie Infinity is a play-to-earn platform whose popularity rose towards the end of 2021. The platform’s business model allows users to earn money through entertainment. The Axie Infinity game allows players to collect, breed, battle and trade “axies.” Players earn rewards in Smooth Love Potion (SLP) tokens. The tokens can also be redeemed for in-game features.
Axie Infinity developers now want to reduce SLP’s supply, saying that while this change was “painful medicine”, it was necessary to guarantee the game’s future success. The SLP supply is expected to decline by 56% once these changes are fully implemented.
“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,” the team said.
The other upcoming change is in the games reward structure. Axie Infinity will create a $5 million prize fund for its reward program. The reward for the next season has been increased from 3000 AXS tokens in season 19 to 117,676 tokens in the next season. This reward will be given to the top 300,000 players on the leaderboard.
“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.”
AXS and SLP record gains
The news of these changes has ignited a strong bullish rally for SLP. Over the past week, SLP has gained by 106%, according to CoinGecko. However, it has since retraced slightly. Axie Infinity’s gains have coincided with recovery across the broader crypto market, with a 19.7% gain over the past week.
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