After 24 hours, the official will update the breeding fee!
The cost of SLP for each product will triple.
The cost of AXS for each product will be halved to 0.5 AXS
These are the new total breeding costs, in SLP units, for each variety.
This year is an incredible journey. We have grown from 38,000 daily players in April to more than 2.5 million daily players today. This brings many amazing opportunities to our evolving digital nation, but it also brings challenges. Some of you are confused, worried, or even frustrated about the current economic fluctuations. We recognize that this volatility makes it difficult for our community members to consistently value their efforts. Hopefully, by the end of this update, you will better understand that our occasional economic adjustment is our attempt to consistently reward skills and effort while balancing community/player growth.
Let's start with a few core Axie economic concepts:
The only way to create an SLP is through games. Every SLP is the result of hard work and skill
The only way to create Axie is to burn SLP. Each Axie proves that humans have played Axie Infinity within a certain period of time
When Axie has new players, the only way they can play is that there are more Axie available than the number of players, which means that we need to consider the impact of future demand on the Axie market and SLP when balancing the economy.
Ensuring the long-term sustainability of the economy will depend on the combination of player growth, new sources of demand for Axies, and external organizations subsidizing game revenue through sponsoring leaderboard seasons/tournaments, etc.
If you are interested in learning more about our economic model, please check out these two articles for more background information:
Axie population and long-term sustainability
Is Axie Infinity sustainable?
Adjustment of breeding fee:
The Axie economy needs to be balanced by rewarding everyone for immediate effort while supporting long-term plans for community development. For some of our community members, some considerations may be difficult to understand, especially if they have only recently started their Axie journey. Many players who are new to Axie have unrealistic expectations of the in-game economy and are not conducive to long-term growth. As we learn how to balance the economy in the short and long term, thank you in advance for your understanding
We would like to provide more insights on how we consider changing fees:
Manage the expansion of resources in the game to improve stability
Ensuring that breeding opportunities are meaningful, thereby driving the expansion of Axie's supply. This allows current and future players to get Axies at a reasonable price
Continue to provide some utility through the role of AXS in the breeding process
The price of floor Axie should theoretically reflect future earnings expectations and the fun of the game
In order for breeding to be meaningful, there needs to be a price difference between the breeding fee and the original floor shaft
If the SLP cost part is too high, we will get Axie population expansion, which will increase SLP output too quickly and flood the Axie market.
If the cost of AXS is too high, it will limit people’s ability to reproduce and burn SLP
If we adjust the farming cost of SLP or AXS too high, the farming of Axie will decrease, the price of Axie will rise, and the accessibility of the game may decrease.
If we make SLP or AXS breeding cost too low, we will get SLP and Axie number expansion
The AXS portion of breeding fees has risen to more than 80%
Most of the recent imbalances are due to the excessively high AXS portion of breeding fees. We believe that adjustments will better balance SLP burning, Axie supply growth, and incentives for breeders and players.
Although we are currently making these changes manually, in the long run, we hope to outsource economic management to smart machines or informed members of the Axie community. We hope to finally implement an automatic balance system that will adjust the AXS and SLP parts of the breeding costs to keep them stable in USD/fiat currency and each other. This is technically a bit difficult, but we hope to launch it in the future. At least for now, when we try to create a new digital economy, Sky Mavis may need to be more actively managed.