Both Axie Infinity Tokens(SLP & AXS) Pump in Response to Upcoming Economic Revamping
So just a few days after Axie Infinity announced major changes to its economic model, the price of both its tokens, SLP and AXS have started to surge in anticipation of upcoming revamping of game economy.
Axie Infinity uses a dual coin economic model, with Smooth Love Potion(SLP) acting as a primary in game token than player earn on daily basis for various gaming activities and AXS serving as a governance token giving the holders control over platform's future by voting for proposals.
The SLP is currently standing at $0.0136, with a 27.46% surge in last 24 hrs and 34.10% increase in 7 days. However SLP still have a lot of ground to cover to its all time high of $0.40 in August 2021.
The price of governance token AXS also pumped showing a 16.18%
increase in last 24hrs and 26.17% in last 7 days. Currently AXS is trading at $68.21, still way below September all time high of $160.
The recent surge in both Axie Infinity tokens(SLP and AXS) came in response to major economic changes that will come in effect in upcoming season 20. The changes will address the SLP inflation issue by reducing the SLP emission rate. SLP rewards for daily quest and adventure mode are eliminated, meaning players will now earn SLP only area combat. The changes are expected to reduce daily SLP supply by 56%.
Currently there is a huge difference SLP minting and burning as only one fourth of SLP generated gets burned.
The AXS price action came right away with SLP as it theoretically follows the primary in game token. The changes will make SLP more scarcer and game more competitive thereby making axies more valuable so the price of AXS token also pumped, which apart from governance also used in breeding and axies upgrading.
The recent price action by both in game tokens is a ray of hope and act as indication that the upcoming changes are gonna prevent the game from the imminent complete economic meltdown, at least in short term.
Posted Using LeoFinance Beta