The chats of the video streaming service Twitch in 2021 were filled with stories of how users quit their jobs, got rich, or at least survived the pandemic thanks to the game Axie Infinity. This is a new trend in the field of decentralized financial instruments – GameFi (Game Finance). The non-fungible token (NFT) blockchain game also has its own management token, AXS. As a cryptocurrency, AXS is popular not only with gamers but also with large institutional investors.
History of AXS cryptocurrency
Blockchain game Axie Infinity is a successful project by Sky Mavis studio. The general concept was formed back in 2017. The slogan of the company: “We are the builders of nations. We create the worlds of the future and their infrastructure”. Their game universe runs on blockchain and is operated by users who can earn from unique non-fungible tokens (NFT).
The team includes 40+ employees. The headquarters is located in Ho Chi Minh City (Vietnam).
- Trung Thanh Nguyen. Position – General Director. Who takes all global decisions: from marketing to technical. Earlier in Vietnam, he founded the Lozi e-commerce project. He worked at Trusting Social, which works with banks and other financial institutions, and at Anduin Transactions, which raises funds for startups.
- Jeffrey Zirlin. Position – project development manager and co-founder of Sky Mavis. He is responsible for expanding the community, attracting new partners, and overseeing the design of NFT. He graduated from Yale University with a degree in Military Economic History, and played for a long time in World of Warcraft.
- Alexander Leonard Larsen. Position – Chief Operating Officer. Deals with business issues. Serves on the board of directors of the Blockchain Game Alliance, which promotes blockchain in the gaming industry. Therefore, it has connections in Asia: South Korea, Vietnam, Japan, Hong Kong. He represented Norway at international competitions in Dota 2, Warcraft 3 and entered the top 200 best European gamers.
- Andy Ho. Position – technical director. Responsible for the engineering component. He studied at Nanyang Technological University, Singapore, and represented the country in the student programming world championship. He was a developer at Anduin Transactions and interns at Paypal and Google.
- Tu Doan. Positions – Game Designer and Art Director. Responsible for visual design. He was the co-founder and chief designer of Lozi.
In a blockchain game, the basic elements are unique tokens; it was through their sale that the initial fundraising took place. Then the service token of the project was introduced.
Jeffrey Zirlin, a founder of Sky Mavis, believes the GameFi sector is key to the massive adoption of cryptocurrencies and blockchain technology. The goal of their team is to create worlds with real economic processes and infrastructure that belong to users. And in the future, this can become a place where everyone will live, earn money and relax.
Features of cryptocurrency
Axie Infinity is a blockchain tactical combat game with mythical creatures based on the Play-to-Earn (P2E) concept. This is the most popular project in the GameFi sector in the fall of 2021. More than 250,000 users play it every day. The trading volume on the domestic market has already exceeded 90,000 ETH (more than $ 436 million as of mid-November 2021).
The term Play-to-Earn means that customers can earn crypto coins and unique tokens directly from their game and then exchange / sell them and receive fiat money.
The essence of the project: clients raise, breed, and use the mythical creatures Axie in battles. At the same time, they can earn by buying and developing plots of land (Land), engaging in selection or battles, and quests. All game items, resources, and creatures are tokenized, representing NFT. They can be freely sold in the Peer-to-Peer markets.
Since the start of the pandemic, thousands of users from developing countries have entered Axie Infinity, where they have found a new source of income. The Philippine government has even proposed taxing operations with the native token, as the game has become the main “job” for many citizens.
The game has an internal real money economic model that is 100% owned by the users. The developers did not go down the route of simply selling NFT. They stimulate the Player-to-Player model when customers, using in-game resources (SLP and AXS tokens), create new Axies and sell them to others. An analogy can be drawn with a full-fledged real country. Each management token holder acts as the government that receives tax revenues.
Basic NFT objects that users are entitled to buy:
- mythical creatures Axie;
- additional items.
All creatures are divided into nine classes (information is current as of November 2021). Moreover, 3 of them are rare and secret. To breed creatures of these special classes, you need a specific combination of 2 purebred individuals. Even then, the chance to create a secret-type character is 33%.
All characters have basic characteristics that are important when conducting battles:
- health: how much damage he can take before he is killed;
- morale: shows the chance for a critical hit and activation of the emergency mode, its duration;
- skill: adds damage with combo attacks;
- speed: determines who will attack first, reduces the chance of getting a critical hit.
Each class has certain characteristics:
- Water class is one of the top classes, a good balance between Health and Speed. Of the minuses – their morale can fall dramatically, but this is rare.
- Plants are the best tanks, as they have maximum Health. Their goal is to hold back the onslaught of enemies as long as possible, protecting 2-3 lines that will deal the main damage.
- Beasts. Can reach maximum Morale. The Critical Damage inflicted, and the characteristics of the onset of a crisis state of health depend on it.
- Beetles is a class that is suitable for support. Control skills are developed, not recommended for beginners.
- Birds are the fastest class and do the most damage. But their main disadvantage is poor health indicators.
- Reptiles are similar to the Aquatic class, but they have more Morale, Health, and Defense boosters.
- Fur (also called Nut) is a secret class. It happened by mixing 100% of the Beast and 100% of the Beetle. More advanced skills than ordinary creatures: either more powerful Combo hits or stronger Armor.
- Dawn (alternative name – Star) is another secret class. It was obtained by mixing purebred Plants and Poultry. Similar to Mechs, but with higher Health scores.
- Twilight (also called the Moon) is a secret class. To get them, you need to cross 100% Reptile and 100% Water: high Health and Speed, but low Morale.
During battles, the user needs to take into account the interaction of classes when calculating potential damage. For example, Beasts are ineffective against Aquatic (do 15% less damage). In this case, the Insect will hit the Reptile, on the contrary, 15% stronger. Each creature has six body parts: horns, back, tail, mouth, as well as eyes and ears. They are of different types. So, for example, Reptiles have horns: incisors, scaly spears, bumpy, and so on. They determine the appearance of creatures and give certain skills. All parts of the body, except for the ears and eyes, have cards (abilities) that can be used in battles. They differ in level (S, A, B, C, D, E, F).
Another fundamental type of NFT is Earths. The homeland of creatures, called the Lunacian, is divided into separate areas. These are houses and bases for the development of individuals. Users have the right to buy them, then improve them with additional items that can be bought or found during the game. You can even find Axie Infinity cryptocurrency on the plots. There are two principles:
- additional resources can appear throughout the Lunacian and are used to improve the site;
- The primary right to them belongs to the owner of the land.
As of November 2021, the world consists of 90,601 lands. Not all are still in circulation. Since all land plots are NFT, users can freely buy, sell, and exchange them.
Principle of Operation
To start the game, the user needs to buy from 3 Axie. The prices are formed by the market, so it is impossible to name the exact amount of the minimum initial investment. The three cheapest Axie users put up for sale in November 2021:
- The Beast: $ 119.18
- Daybreak: $ 139.85.
- Water: $ 142.
Minimum amount currently: $ 400 +. At the same time, it is not always advantageous to choose the cheapest offers: you need to evaluate the pedigree, characteristics, types of body parts, and parents. Therefore, it is often said that the average initial investment will cost $ 600 +.
To become a member of the world of the Lunacian, you need:
- Create an account on the official marketplace. You will be prompted to log in via mail and password or via MetaMask. It is more convenient to choose the second option and immediately link the wallet.
- After authorization, the “Configure email address and password” button will appear inside the account. You need to click on it and fill in the information.
- Since all operations in the game world take place through the Ronin sidechain, you need to attach its wallet. If you don’t already have one, you should install the Ronin Wallet extension and add it to your browser. There is a convenient version for Google Chrome.
- Activate the Ronin wallet. The button is located on the toolbar in the Personal Account.
- It is more convenient to deposit ETH to the wallet through the Ronin bridge. First, you need to buy coins on any exchange and then transfer them to your own Ethereum address. In some countries, you can use the Ramp Network reseller to purchase tokens with fiat.
- Enter the marketplace and buy 3+ specimens.
- Open the game site and click on the Play Now button. The download of the application will start automatically. Available operating systems: Windows, Android, iOS, macOS.
Now you can go to the game. The developers of the fantasy world have provided several different types of actions that will help develop not only characters but also earn Axie Infinity (AXS) coins.
The first way is selection. Like ordinary pets, mythical pets can be bred and offspring.
To breed new pets, you need to spend two types of tokens: AXS and Smooth Love Potions (SLP). The number of crypto units required depends on how many times the selection has taken place. For example, if this is the first offspring, 600 SLP is sufficient, and for the 7th time, 10,200 SLP is needed. You can get Smooth Love potions in the PvP arena and in the PvE adventure mode.
What a new individual will turn out depends on the genes. Each part of the body has 3 of them:
- Dominant D. Visually pronounced in the parent, the chance of passing it on to children is 37.5%.
- Recessive R1. The probability that it will be reflected in the descendants is 9.375%.
- Small recessive R2. The chance of being transmitted is 3.125%.
To more accurately calculate the expected result, you can use the calculator created by the project team. You need to choose a mom and dad, and the program will show the probabilities of the appearance of different types of body parts and classes.
The second way to develop in the world of Lunatcian is PvP battles in the Arena. This is a turn-based card game in which you have to destroy your opponent’s pets. Each opponent puts three creatures on the battlefield. Then casts them during the turns.
There is still little information about the third way to play (real-time PvE battles) in November 2021. The announcement states that chimera monsters will attack the lands of the Lunacian. Users will have the right to fight them, either alone or by assembling a team. If you manage to kill the chimera, resources will fall out of it, with the help of which you can improve the sites.
In December 2020, the project team decided to move away from using Ethereum due to low scalability and launched a test version of their Ronin sidechain. In the fall of 2021, the MainNet has already been launched.
The exact data on the sidechain throughput is not published, but the indicators should be higher than that of Ethereum – more than 15 TPS. According to Ronin Explorer, it takes an average of 3 seconds to create a block. These are good results, because for comparison, for Bitcoin, the process in the fall of 2021 takes an average of 10 minutes, for Ethereum – 15 seconds. But Ronin is inferior to high-speed blockchains: Solana takes only 0.04 milliseconds, and Internet Computer takes about 40 milliseconds.
Features of the AXS cryptocurrency:
- Serves as a utility token in the game universe. It gives the right to vote, is used for staking and making money. Together with the Smooth Love Potions (SLP) token, it is required for breeding creatures.
- Although the developers launched their Ronin network, tokens (both utility and NFT) were issued on the Ethereum blockchain.
- The purpose of creation is to transfer control into the hands of the holders. But full decentralization in the fall of 2021 has not yet been achieved. A large number of tokens are in the hands of the Sky Mavis gaming studio.
- You can earn crypto coins in a non-standard way: by playing in the world of the Lunacian.
- Gas is used to pay for operations in the network. But its price is lower than on the Ethereum blockchain.
Cryptocurrency technology AXS
The main development of the Sky Mavis studio is the Ronin sidechain, designed to solve the problems of the Ethereum network. The developers call these advantages:
- Lightning-fast transactions with almost instant confirmation.
- They reduced gas commissions. Moreover, the fees no longer need to be paid to the miners of the Ether network. They will remain in the community and can be used as rewards in tournaments.
- Since this is a sidechain, the two-way binding to the parent network is preserved. If necessary, coins can be transferred back to Ethereum.
- It simplified the wallet registration process.
- Has its own Explorer. The user gets access to all data.
The Ronin Bridge was also created to interact with the Ethereum network. It allows you to send AXS / SLP coins to the Ron Network or, conversely, return them back to the parent blockchain. The Ronin Wallet was also generated as an extension for Google Chrome.
The developers did not seek to create a stablecoin; therefore their management cryptocurrency is highly volatile and has no real reinforcement. Its rate is not pegged to the dollar, euro, or another fiat.
Pros and Cons of Axie Infinity
Pros of Axie Infinity:
- leader in the promising GameFi segment;
- the possibility of earning money in the game;
- bright gameplay, interesting mechanics;
- support of large investors;
- approaching maximum decentralization;
- compatibility with the Ethereum network;
- the possibility of staking.
Cons of Axie Infinity:
- High entry threshold: you need to buy NFT in the amount of $ 400 +.
- Despite the possible prospects, investments are considered to be quite risky. The GameFi sector is still little explored. It is very difficult to make long-term predictions.
- The project is still in its early stages of development. Most of the services are not implemented.
Axie Infinity works like a Ponzi pyramid. This is a financial scam. It might sound like it’s legal, but it’s definitely not. Current players are rewarded with money generated from new player investments.
People are interested in spending about $ 700-1000 on a game because they thought they can make a lot of money from it. Naturally, you can make a profit, but only through the entry of new players into the game.
– What is SLP AXIE Infinity?
Small Love Potion (SLP) is an Ethereum-based ERC-20 gaming token that serves as a digital asset in the Axie Infinity game.
– Is Axie Infinity sustainable?
The token price is unstable. Her fluctuations are caused by:
- changes in the mood on the crypto market;
- jumps in the price of BTC;
- the emergence of new ways to make money within the game;
- connecting services, launching products. For example, the creation of your own exchange provoked a jump in the rate;
- increase in the price of NFT;
- improved scalability. The move to the Ronin sidechain caused the price to rise;
- increased interest in the media;
- growth in the number of clients;
- changing user interest in the field of GameFi, NFT.
– How much does an Infinity AXIE account cost?
To get an account, you need to buy NFT in the amount of $400 +.