- Blockchain game Axie Infinity is revamping its reward token to even out the game’s earning model
- The game has multiple tokens with Smooth Love Potion (SLP) being the one used to reward players
- Part of the changes to the earning model include putting a cap on SLP token rewards
Web3 game Axie Infinity has announced steps to steady its earning model with hopes of making it the go-to blockchain game that it was in its early days. Part of the efforts include capping its reward token Smooth Love Portion (SLP) at 44 billion. The game’s developer Sky Mavis believes that reworking the amount that goes to players in the form of in-game rewards will help to “create a steady and consistent source of demand for SLP and balance supply with demand.”
A Social Contract, Not a Smart Contract
In a blog post, the game’s creators disclosed that the capping will be done through a “social contract” and via an “emission mechanism.” The team explained that a social contract won’t require SLP holders to move their tokens to a different contract, unlike when using a conventional smart contract.
UPDATES TO $SLP Monetary Policy!
Due to a sudden winter frost, a vital crop of key ingredient in the brewing of Smooth Love Potion (SLP) has been destroyed.
• SLP supply is now capped at 44 billion!
• For every 10 SLP burned, 2 SLP will be added to a stability fund. We have… pic.twitter.com/j0v4nsgq72— Axie Infinity (@AxieInfinity) January 11, 2024
According to the Axie Infinity team, a cap of 44 billion tokens provides enough room for expansion even when the game is experiencing “periods of larger emissions.” SLP’s current supply is roughly 41.4 billion, leaving around 2.6 billion before touching the limit.
Sky Mavis has also launched an SLP buyback program and stability fund. The buyback program will see the Axie Infinity team send 2 SLP to a wallet controlled by the team for every 1 SLP burnt. The wallet already has $60,000 in USDC meant to cover the team’s operations for roughly a year.
Sky Mavis Invested in web3 Gaming
The decision to limit SLP rewards adds to the game developer’s continued push to support web3 gaming. The developer has in the past partnered with CyberKongz and a handful of game studios to drive the adoption of blockchain gaming.
With a limit on SLP tokens, a buyback program and a stability fund, it’s to be seen whether these factors will help Axie Infinity regain its mantle as the leading blockchain game.
