As Axie Infinity sits at the cusp of its 20th season, it faces a major dilemma. The in-game economy is in freefall, and the team must take immediate action to stem the tide. So, in a bid to put this virtual world to right, it is preparing for a major overhaul of its rewards system.
The problem the platform faces is that it currently mints four times the number of SLP tokens than it burns, thereby creating an unsustainable state of affairs where the total supply continually increases. As such, the team intend to tackle this issue head on in the upcoming 20th season.
First for the chop are both the adventure mode and daily quest rewards. All in all, these currently make up a massive 54% of all SLP distribution, and cutting them will therefore have a drastic impact on the token stability.
In addition, the Axie team will also reduce SLP rewards for teams over 1,100 MMR, while re-introducing rewards for lower ranked teams. All is not lost however, as where one set of rewards is lost, another is gained. So, going forward, the current leader board is expanding from 1,000 to 300k battlers. Each of which will receive a share of 117,676 AXS tokens, approximately $6 million.
A spot of rudimentary calculating will reveal however, that a mint/burn deficit still remains. So, to address this situation, Axie is working on a number of additional burning mechanisms for the platform. As a result, expect to see special cosmetics, upgradeable body parts, breeding events and buy-in tournaments arriving in the Axie ecosystem over the coming months.
Finally, to tail off all the upgrades, Axie will level out its energy distribution. Going forward, it will therefore incentivize larger teams and the maintaining of low level Axies. All of this represents a mere stepping stone however, as the game will change once again when Origin finally arrives.
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