Blockchain Game Axie Infinity Updates Fees As Token Hits All-Time Low
In the announcement, Axie Infinity said that they are concerned about the supply of Smooth Love Potion (SLP) tokens on the platform, which encouraged the team behind the game to update the fee structure.
According to the Axie Infinity team, the growth has slowed down “due to concerns over an imbalance in the amount of SLP minted versus burned per day.” The announcement also explained that volatility within SLP and the game’s governance token (AXS) has caused large fluctuations in the games breeding fee adding that the rising price of AXS has “taken away from SLP’s utility” within the game economy.
The announcement stated, “We recognize that this volatility makes it hard for our community members to value their efforts consistently. Hopefully by the end of this update, you’ll better understand that our occasional economic adjustments are our attempt to consistently reward skill and effort while balancing community/player growth.”
On Axie Infinity, SLP tokens are earned by playing the Axie Infinity Game for time, replacing experience points. These SLP tokens are needed to pay for a portion of the game’s “breeding fees”. AXS tokens are needed to vote on proposed changes to the game and are also needed to pay a portion of the game fees.
The announcement said that the update would reduce the AXS fee per breed from 2 AXS to 1 while the SLP cost will be increased in accordance with a more detailed fee breakdown, with 1 breed now costing 600 SLP.
One Twitter user, Cryptunez, pointed out that the change in fee structure arrived just as the SLP token hit a new all-time low of $0.055 on Binance. Despite jabs from some members of the crypto community, the market responded favourably to the announcement, which sent the price of both tokens significantly higher. This morning, AXS traded at $67.52, up 14% over the past 24 hours.
The price of SLP also managed to bounce back from it’s all-time low, increasing by 34% in the past 24 hours to $0.081.
Speaking of their long-term plans, Axie Infinity announced that they would one day like to hand over management of the economy to intelligent machines or informed members of the Axie community. The company hopes that doing so would lead to the eventual implementation of an auto-balancing system that would adjust AXS and SLP portions to be stable and in relation to each other. Axie Infinity finished their announcement by saying that, “more active management from Sky Mavis may be required.”