'Axie Infinity' Restricts SLP Token Circulation—Is Game Revitalization Possible with This Move?

Axie Infinity’s Reward Token SLP Gets a Major Rework

Sky Mavis’ popular play-to-earn game Axie Infinity is making significant changes to its reward token, Smooth Love Potion (SLP), in an effort to stabilize its earning model.

Establishing a Supply Cap for SLP

The Axie Infinity team has announced a supply cap for SLP, limiting the total number of tokens to 44 billion. This is not a technical cap enforced by a new smart contract; rather, it’s a “social contract” that will be enforced through metering in-game rewards. Currently, there are about 41.4 billion SLP in circulation.

The Three Crypto Tokens of Axie Infinity

SLP is Axie’s main in-game currency, while AXS serves as its governance token and RON functions as the gas token of Axie’s Ronin blockchain.

Introducing a Stability Fund

A stability fund has been established to bring SLP to a deflation rate of 2%. For every 10 SLP burned, 2 SLP will be added to the fund. The team has already added 60,000 USDC to get the fund started. The stability fund programmatically buys and sells SLP based on inflation rates.

SLP Price and New Game Mode

Following the news, the price of SLP rose approximately 8% in the past day. However, it remains down almost 2% over the past week. Additionally, Axie Infinity has introduced a new game mode called Premium Cursed Coliseum, where players can earn SLP based on their performance.

The Future of Axie Infinity

First launched in 2018, Axie Infinity experienced significant growth in 2021 and early 2022. However, the value of SLP crashed after reaching all-time highs and has not recovered. The team aims to address inflation issues and improve the play-to-earn economy of the game.

Hot Take: Axie Infinity Revamps SLP to Stabilize Earning Model

Axie Infinity’s decision to rework its reward token, Smooth Love Potion (SLP), by establishing a supply cap and introducing a stability fund reflects its commitment to stabilizing the game’s earning model. With these changes, Axie Infinity hopes to create a steady source of demand for SLP and balance supply with demand. While the price of SLP has seen some positive movement following the news, it still has a long way to go to reach its previous all-time highs. Nonetheless, these updates demonstrate Axie Infinity’s dedication to improving its play-to-earn ecosystem.