Axie Infinity Limits SLP Token Supply To 44 Billion

The popular play-to-earn based game, Axie Infinity, developed by Sky Mavis, has three types of crypto tokens in its ecosystem, namely SLP, AXS, and RON. Breaking news, the Smooth Love Potion (SLP) token, is undergoing a major update with the aim of stabilizing the game's revenue model.

SLP Token Supply is Limited Now

The Axie Infinity team has set a limit on the maximum number of SLPs that can be circulated, namely 44 billion. These limits are not technical limitations enforced by new smart contracts , but rather a “social contract” that will be enforced in part through setting the amount of in-game rewards so as not to exceed these limits.

Currently, the number of SLPs circulating in the market is around 41.4 billion. SLP itself is a native token in the Axie Infinity game and can be obtained by playing the game. Meanwhile, AXS is a governance token and RON is a token for transaction fees ( gas ) from the Ronin Axie blockchain, an Ethereum sidechain that focuses on gaming.

SLP Token Inflation Expected to Decline to 2%

The Axie Infinity team hopes to lower the SLP inflation rate to 2%, and has set up a "stability fund".

According to the update, the team promised to add 2 SLP to the fund for every 10 SLP burned, and has added 60,000 USDC to the fund to get it started. This fund will programmatically buy SLPs when inflation is higher than the target and sell SLPs when inflation is lower than the target.

Mechanism of How to Get SLP Tokens

In principle, SLP can be obtained by winning games on Axie Infinity. But the development team has introduced a new game mode, namely Premium Cursed Coliseum.

With this new mode, players will have to pay a one-time fee of 150 SLP to log in to the game and players will earn 50 SLP for three wins, 150 SLP for six wins, 300 SLP for nine wins, and 750 SLP for 12 wins.

Players who win 12 games without losing a single match will receive 3,000 SLP, according to a post.

Ultimately, 20% of those entry fees will be burned, while the remainder will go into a growth fund—but those percentages could fluctuate each month going forward, the Axie team says. Additionally, it is important to note that SLP earned from the new Coliseum mode cannot currently be withdrawn or cashed out.

The development team also added that this feature will be available in the next month or two.

Effect of New Policy on SLP Prices

SLP prices saw an increase of about 8% in the past day following this news, but remain down nearly 2% in the past week, according to CoinGecko data.

The token is still down more than 99% from its peak in 2021, when Axie Infinity was very popular and had millions of active players.

Also Read

Polygon (MATIC) Outperforms Solana (SOL) In Weekly NFT Sales

Bitfinity Raises US Dollar 7 Million Investment for Bitcoin Sidechain on Internet Computer (ICP)

What is Yield Guild Games? The World's First and Largest Web3 Game DAO

First Day Bitcoin ETF Spot Volume Reaches $4.5 Billion US Dollars

Potential Impact of Bitcoin ETF Approval

DISCLAIMER : This article is informational in nature and is not advice, recommendation, offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time. Bittime is not responsible for changes in exchange rates or crypto asset prices.