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SLP: Price soars after changes at Axie Infinity
Again, in an attempt to give the game's economy a boost, Sky Mavis announced measures to adjust the rewards in Axie Infinity.
These changes propose, initially, to reduce the inflation that exists in the SLP, on whose price a large number of users depend. In this way, greater demand is encouraged due to the reduction in the available supply of the token.
Axie Infinity: update to adjust the economy of the game
It is no secret to anyone that the game's economy was in decline, starring an SLP that was bleeding more and more with the passage of time. The fall of a big one, such as Bitcoin, did not help much either, although it has recently surpassed the $40K barrier once again.
For these reasons, the developers have worked on constant changes and updates in order to recover the profitability of the game. Everything, with the aim of promoting the entry of new users, as well as satisfying the demands of existing ones.
Previously, they had already implemented an update to improve the gameplay , but now they want to bring back the glory times. Here we tell you about the changes that aim to recover the economy of Axie Infinity.
Goodbye to adventure mode and daily missions
According to official data from the game, approximately 40% of the SLP is generated thanks to the adventure mode. On the other hand, 44% is created thanks to PVP, and through daily missions, 14% is manufactured.
Clearly, it can be seen that a higher percentage of the SLP is generated by activities that do not encourage the use of player skills in PVP. That is, they are achieved in a much simpler way, without involving much effort.
As a result, there has been massive in-game inflation, which is the main reason why the price of SLP has dropped.
The direct reaction has come at just the right time. The measures taken, which some consider drastic, have been the suppression of the 50 SLP that are earned daily in the adventure mode. This would only remove a supply of 130 million SLP per day.
Also forgotten are the daily missions, which at the time were intended to encourage activity within the game.
But, it seems that the response had a negative impact on the economy, being another influencing factor in the excess production of SLP.
Therefore, approximately 45 million SLP units that are generated per day are also subtracted, thus combating inflation. In total, the developer team expects to reduce the daily production of the Axie Infinity game token by up to 56%.
Another way to encourage participation within the PVP mode is by increasing the reward positions in the player leaderboard. In essence, in season 20 it will go up to 300,000 places that will receive prizes for their level of cups.
They also increased the amount of AXS to give away to 117,676 units, which equates to a prize pool of approximately $6 million.
Also, they confirmed the return of 1 SLP per victory for those players who have a rank lower than 800 MMR. What is sought is to give a sense of utility to the Axies outside the current meta, that is, the weakest.
In this way, the demand for better equipment to be able to compete and enter the best qualifying positions, encourages the purchase of Axies. By direct effect, we have a higher SLP burn in order to get AXS to do the above.
And so, little by little, the inflation generated by the massive production of SLP is reduced. In this way, the price of the SLP will begin to increase (it is already doing so) and stabilize due to a greater demand for it.
What are developers looking for with these changes?
Primarily, the goal is to improve the game's economy, which has been severely affected by bug changes in the past.
How would they do it? First, by increasing the difficulty with which the SLP is earned, which has an immediate effect on supply and demand. Consequently, the price of the token increases gradually.
But why would people want to burn SLP? This is where the second change comes in. By increasing the reward posts, users would enter the quest to improve their equipment or acquire new Axies.
To do this, they must use the governance token, the AXS, where one of the ways to obtain it is by changing the SLP. In this way, with the reduction in the production of the SLP, and the increase in its burning, inflation would fall and the price would rise.
On the other hand, its changes seek, beyond improving the economy, to encourage the use of PVP. And it is that, yes or yes, the number of active players trying to enter the arena would increase exponentially. This also influences the probability that we will find an opponent equal to our Axies.
The developers call this process “player liquidity”, which they seek to reward you with these measures.
The Impacts for the SLP: Coinmarketcap Shows Its Rise
By Monday, February 7, the changes would already be making a wick in the price of the SLP. Specifically, for that day, it was up more than 30%, representing a ray of hope for Axie Infinity players.
While, for Tuesday, February 8, in the last 24 hours, the price of Smooth Love Potion increased by approximately 3%. All thanks to data from Coinmarketcap .