One of the best-known blockchain-based games, Axie Infinity, announced on Thursday that its governance token would be staking. This means that people who own this token will be able to put money into it.
It was made in 2018, a game called Axie Infinity. Afterward, they can sell the rewards on exchanges. It lets people get crypto rewards that can be sold later. There are ways to use these crypto rewards. You can use them to buy more crypto.
This game has non-fungible tokens (NFT), which are different from other tokens. They can be traded, fought, and even raised by the players. This is a Pokémon-style investment opportunity.
We can utilize the blockchain to do things that have never been accomplished before, such as making money using Bitcoin. An Axie Infinity content creator and program lead thinks GameFi is the first new thing we can do with NFTs, and he says it’s great.
Accruing earnings from Axie Infinity
You can buy Axie Infinity Shards (AXS) and Smooth Love Potion (SLP) with these two tokens in the Axie Infinity economy (SLP). During the game, players earn SLP, which is money they can use to buy things. Most people think of AXS as like owning shares in a company. Holders of these tokens can vote on and propose changes to anything that has to do with Axie Infinity’s platform.
But staking adds a new thing to Axie Infinity. Holders of AXS tokens may now lock their tokens for a period of time and earn rewards.
Participants may also vote on how to spend the community treasury, which currently holds all protocol revenues.
Gaming and NFTs
In the future, Sky Mavis, the studio behind Axie Infinity, wants to give up control of the game and let the community run it, says their white paper. With a 4.5-year vesting schedule, the team that runs the game now owns 21% of the AXS supply. The team makes the decisions about the game’s development and direction.
Devin Finzer, the co-founder of OpenSea, said that Axie Infinity is one of the most popular games in the NFT space right now. This was during a panel at the Messari Mainnet conference.
Despite the high demand for art and collectibles on the NFT marketplace he helped develop, Finzer believes gaming may be the next big thing for NFTs.
While the NFT industry he helped develop is booming with art and antiques, Finzer expects gaming will be the next frontier for NFTs.
Play-to-earn economy
An NFT based game called Axie Infinity isn’t the first one, but its popularity has made some people question the traditional business model of games.
In a closed-loop system, all money goes back to the studio because no one else is to blame.
Also, there is an open system in Axie Infinity. When two players are playing simultaneously, they may swap game stuff with each other.
In addition to making money from staking AXS tokens, players get SLP tokens for spending time in the game.
Campbell said traditional digital goods like skins have less value than GameFi items.
Earning from play
Activision Blizzard (ATVI) expects to earn over $8 billion in sales and $2.2 billion in profit in 2020. It makes $2.7 billion a year, according to Token Terminal.
The current market value of ATVI and the AXS governance token is $60 billion and $5.7 billion, respectively. There will be $23.2 billion in worth whenever the AXS token is operating margin to make it worth more. Only 60 million of the total 270 million are in use today.
The number of people who use Axie Infinity every day has grown by 4,768 percent since April. As of Monday, 1.85 million people were using the game every day. Over the last few months, however, revenue has been falling. Possibly due to increased user numbers and decreased cost of breeding NFT characters.
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