Top 5 Solutions to Fixing the Axie Infinity Economy
By Editor | Last Updated 01.14.2022
The 5 Best Solutions Devs and the Community have to fix the Axie Economy
This article explores the Top 5 Solutions to fixing the Axie Infinity economy in full detail. These are the opinions of the community and the Author and should not be mistaken as an update to the game. That being said, read on to find out how we can fix the Axie Infinity economy.
- The Rise and Fall of SLP
- Short-Term Suggestions
- The 5 Best Solutions
- The Future of Axie Infinity
The Rise and Fall of SLP
If you were an early investor of SLP when the price hit its low at $0.00312759, you would still be up around 500%. If you were invested at the start of 2021, you would still be up 35%. Technically speaking, the coin has not fallen since its very early days. However, one can argue that SLP has been consistently trending downward.
Most judge a coin by its ATH or All-Time High. SLP’s ATH is $0.399727, which it achieved on July 13th, 2021. From that point on, SLP has fallen 95% to its current standing of .018USD.
If you were a late investor of SLP, you would be down nearly all of your investment. For most, their time spent playing the game has gone down in value. Many might argue that this proves Play-to-Earn games cannot work.
The problem with that argument is that Axie Infinity is still in an early stage of development. Most game studios do not allow mass adoption of their game in its Alpha state. However, Sky Mavis allowed “the gates” to be open to all. This led to the massive spike in adoption that created an enormous spike in the minting of SLP.
Once there was way too much SLP with only one use case for it, most SLP holders decided to trade their SLP for their native Fiat Currency, which was the only other option other than using it for Axie breeding. This led to the ongoing sell-off and the falling price of SLP from its ATH.
Sky Mavis Devs mentioned in The Lunacian, using money from the treasury (the money generated from the 4.5% tax on marketplace transactions) to help boost the price of SLP as a short-term fix (more on that below). Unfortunately, this short-term fix of raising the price of SLP will drain the treasury until Sky Mavis can provide a solution to their utility token. They also mentioned cutting the SLP Rewards for Daily Quests, PVE, and PVP, which would be the third time.
The Official release date of Lunacia and Battles Origins is still a mystery. Still, it is the only other hope Sky Mavis has given the community as a solution to the plummeting price of SLP. In the meantime, the Axie Infinity Community is left with no other choice but to wait. For some, that is dire, as seen by the many posts on Twitter of players begging for a fix for the dropping SLP price.
For those who are more patient, Sky Mavis does keep a steady stream of information rolling out regarding the direction they plan to take the game. As mentioned on Twitter (see image above), the Sky Mavis Team has hinted at the possibility of introducing crafting, upgrades, and resource sinks into the game.
This is a good sign that they are working on something, and to all those out there complaining, there is still hope for a better future. Below is what we feel, based on the community response and influencers, are the five best solutions to solving SLP and the Axie Infinity Economy before the release of Battle Origins and Lunacia Land Play.
The 5 Best Solutions
Most of the discussion was driven on Twitter and Discord after Sky Mavis released a Developers Journal Blog with some short-term solutions to solving the SLP down-trend. Those short-term solutions all point to one thing: lowering the rate of issuance of SLP. The community responded, and while this short-term solution may help, it would certainly not be a popular move, as lowering SLP Rewards and winnings has already been reduced twice before. CryptoGameNews.io has been following this development for months and has now put together our list of the TOP 5 Solutions to Fixing the Axie Infinity Economy. Not all will agree, but one thing we all can agree on is that something must be done.
Introduce SMOOTH POTIONS
Create In-Game Utility Items
Introduce a new market category for SLP in-game utility items such as Smooth Potions. So how will this help SLP? Well, these Smooth Potions just don’t come out of anywhere; you have to make them! It also introduces an entirely different economic cycle within the game, except there won’t be any breeding involved here, instead Crafting.
By introducing Smooth Potions into the Axie Infinity economy, you immediately impact the price of SLP and the game’s stability in its current state. While the Devs may be onto something else, this idea of Smooth Potions and Crafting is undoubtedly a way to create demand for SLP. Of course, this would require the Team to develop a new Crafting System that allows players to craft these potions to sell.
Alongside the new Crafting System will be a necessary inclusion of Ingredients. These can be dropped during PVE Adventure Mode play, allowing players the opportunity to craft game items to then sell to those who need them. More on Ingredients in the Crafting section below.
The balance in this mini-economy within the Axie Economy will naturally come from the player’s supply and demand dynamics. By offering potions as a craftable item and an in-game utility, you create two sets of players that feed off of one another. More on that below, we don’t want to bore those interested in the idea of potions in the game. Below is a list of possible Smooth Potions that could affect the game by adding a strategic element to it and the economy by giving players a reason to spend SLP.
Below are examples of what Smooth Potions could be when mixed with Special Ingredients below (more on that in the Crafting suggestion below)
- Battle Bonuses: Get a temporary boost in battle by using an SLP bought item. (A potion that gives one of the following boosts: +HP, +SPEED, +SKILL, +MORALE)
- Re-Shuffle Cards: Get a re-shuffle on the cards you’ve been dealt in battle with an SLP bought item.
- Extra Life: Bring an Axie back to life in battle with this SLP bought item.
- Bonus Energy: Get more energy by using this SLP bought item.
- Extra Shield: Get more shield with this SLP bought item.
Finding a Balance
Sky Mavis Devs and the Community will need to come up with a way to balance these Smooth Potions so that everyone feels like it is fair for all. One suggestion is to give these Smooth Potions a limit of one use per battle. By making it one use per battle, you make the player decide which is the most vital potion to use in which situation, giving it a strategic element the game has not had before.
Isn't that Pay-to-Win?
We understand creating a demand for SLP with an in-game item will give a player a strategic advantage over one who does not spend SLP, but this will be a temporary growing pain for those who wish to sell all of the SLP until they learn to spend the minimum amount to compete in PVP. Spending SLP to play the game will be a common practice after the introduction of Smooth Potions has been balanced, and SLP, as a result, will stabilize.
As some may suggest, we do not believe this will turn Axie Infinity into a Pay-to-Win game. The items described above can be limited to one use per battle, leaving room for a net positive for those who win their PVP matches. Those who do not must resort to another improvement route until they begin to succeed by improving their lot by farming SLP in PVE and other ways.
These in-game utility items not only create a new strategic element to battles, but more importantly, it adds an economic cycle between those who battle a lot and for those who either don’t and for those who SLP farm in Adventure mode. This gives one party a reason to Sell SLP directly and use their SLP to craft potions to sell to another party that Uses Potions and Spends SLP to get them. This ultimately is keeping SLP within the Axie Economy. There will need to be an SLP marketplace for these items for this to work.
Once this system is in place and balanced, integrate it into V2 Battles and Land play.
Solution #1 may not solve the SLP issue completely, but it sure will stop the bleeding for the most part. Let us explore more ways to improve the Axie Infinity Economy.
Introduce Smooth Potion Crafting
Introducing Smooth Potions and Crafting with Special Ingredients that require SLP (in the crafting process) will help move SLP into a more stable coin almost immediately. While these two solutions are great, they will undoubtedly take some time. The following solution is no exception, but it may be something the Devs can do much sooner than adding Crafting and Potions to the game.
Introduce Axie Generations & Collectables
Like the Axie Xmas Surprise, by introducing Axie Breeding Generations & Collectables, you make Axie’s born during a particular time-frame rarer. With a bonus Collectable thrown in randomly to a few of those Axie’s, you can create an even rarer lot of Axie’s within the rare lot. Collectables can be special cards or just cosmetic items that you can show off to your friends in Lunacia.
What are Axie Generations?
Generations are Axie’s that are born during a specific time frame, be it a season or a month, or even a week or day. Frankly, Sky Mavis can choose whichever timeframe they wish with each update. The most likely of these situations would be seasonal Generations, with Axie’s having a special Holiday bonus thrown in throughout the year.
As a result, each Axie born during these timeframes will be more unique and more valuable. This will have a net positive effect on the Axie Economy, giving more players more reasons to buy Axie’s in the marketplace.
This solution will improve the status of both SLP and AXS, as breeding involves both tokens. While this is another additional and must-needed improvement to the Axie Economy, more can still be done. Read on for a solution to fixing the Axie Infinity Economy that the Devs could implement much sooner than the first three.
Introduce SLP Only Tournaments
Host live weekly tournaments that require an entrance fee of SLP. Have an adjustable percentage of the winnings get burned while still using AXS in the winnings. The Devs mentioned they may include a tournament-style solution, so I won’t spend any further time here. Read on to see our fifth solution to fixing the Axie Infinity Economy.
Sell NFT Passes to Special Events that you can only get by crafting (using SLP in the process). This will IMMEDIATELY create a demand for SLP, especially right before the event. While this solution is quite vague and can only happen occasionally, there is no denying the effect that Special Events have on a games community. The focus will be the event, but the result will be burnt SLP, which will ultimately help keep SLP stable or deflationary together with the other solutions. As a final result, you have a very happy Axie Economy.
The Future of Axie Infinity
When it comes to Axie Infinity, we all must remember that it is still in its ALPHA of development. The fact that it is open to the public is both its greatest strength and weakness at this point due to the unpredictability of the market, making SLP inflationary. However, with the Sky Mavis Team hard at work, we must remember that games take time to develop and that updates are on the way. Axie: Origin, Lunacia, Crafting, and much more is on the way!
I genuinely believe the Axie Community has one of the strongest cores holding it together. This community has banded together through a typhoon, brought people income during a pandemic, and has shown a willingness to work together on the future of the game we all love. One thing is clear; the future is very bright for Axie Infinity. While there are certainly some hurdles ahead and some work to be done, the Axie Community is the closest thing to a family I’ve seen when it comes to games. For that, it makes it clear that Axie Infinity is here to stay, and the economy will thrive once again.
Standard Disclaimers: (1)The information and/or opinions in this article are intended for entertainment purposes only. Contents of this article are not investment, business, legal, or tax advice.
(2)Although best efforts are made to ensure that all information provided is accurate and up to date, omissions, errors, or mistakes may occur.
(3)The author of this article is invested in (a) cryptocurrency project(s) and currently has cryptocurrency holdings – including those covered in this article.
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