Axie Infinity Announces SLP and AXS Breeding Fee Adjustment
Sky Mavis, the developers of Axie Infinity, announced new changes to the breeding requirements for Axies. There are two cost requirements for breeding an Axie: AXS and SLP. Around 24 hours after first announced, the AXS cost will be reduced from 2 AXS to just 1 AXS. The SLP cost per breed, however, has been increased to the following:
In a blog post, Sky Mavis have acknowledged that a number of players have voiced their confusion and worry with regards to the current Axie economy.
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SLP is issued everytime a player sync their earned SLP to the Axie dashboard. SLP is burned when breeding. At the moment, the SLP issuance has continued to be greater than SLP being burned:
Sky Mavis acknowledges that the only way SLP is created is through gameplay while SLP burning only happens when an Axie is bred. Thus, increasing the SLP requirement per breeding would increase the rate of SLP being burned every day.
New players require more Axies, the company stated. “This means that we need to think about the future demand shocks to the Axie market and SLP when balancing the economy.”
“Ensuring long-term sustainability for the economy will rely on a combination of player growth, new sources of demand for Axies, and external organizations subsidizing play-to-earn by sponsoring leaderboard seasons/tournaments & more.”
Sky Mavis said the growth of the game is cyclical so there needs to be economic adjustments every cycle. “While our veterans have seen these cycles many times before (such as when Axie prices dropped from .1 ETH to .002 ETH in 2019), it can be a bit unnerving for our new players.”
Growth Projections
Sky Mavis said their projections for next year suggests the need for “tens of millions of Axies for future on-boarding rush that we expect with the launch of our Ronin Dex and Battles V2.”
Diving deep into data, the company said because SLP issuance was too low before Ronin was launched, the Ronin launch eventually created a massive surge in SLP price that was “short lived and ultimately caused unrealistic expectations around the Axie economy.”
Thus the changes were a result of the following observations:
- Growth slowing down because of concerns of imbalance in the economy
- Volatility
- AXS becoming very expensive
In the future, Sky Mavis said it wants to implement an auto-balancing system that will adjust the AXS and SLP portions of the breeding fee relative to their dollar prices and in relation to each other.
Source: Axie Substack
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