Axie’s SLP Token Surges Over 50% After “Season 20” Upgrade

Time Stamp: February 10, 2022 1:31 PM
Source Node: 1170287

Axie’s SLP token surges over 50% after the update to the game’s economy to curb the in-game inflation so let’s read furhter in today’s latest altcoin news.

The popular game Axie Infinity reward token SLP saw its price surge by 50% overnight and more than 300% in the past two weeks to reach $0.03787. Axie’s SLP overnight gains came alongside the surge in the price of the governance token AXS which is up by 36%o over the past week. Both coins increased after the announcement of the Axie Season 20 update that makes sweeping changes to the play-to-earn title In-game economy. So what role will SLP play out and how does the update affect all things?

Axie Infinity is a Pokemon/Tamagotchi-inspired game where players collect and breed NFTs that look like monsters and battle them for rewards. Once players assemble a team they are able to collect Smooth Love Potion or SLP tokens in the battles. The SLP tokens can be redeemed for in-game features including the ability to breed new coins. The new update is centered on reducing the daily supply of the SLP tokens by 56% and the players can no longer earn them via daily questing and playing adventure modes. In a blog post, the Sky Mavis team wrote:

 “The daily quest, in principle, was great to encourage people to play every day, but it’s now become a mass emission mechanism for SLP. By removing the daily quest, we are able to reduce issuance by around 45 million SLP per day.”

The new measures to cap SLP are aimed at increasing the token scarcity which is a measure where developers feel it was necessary to avert the total and permanent economic collapse. The possibility of a meltdown under the previous economy of the game because of the high inflation of the token was quite about 4 times higher as SLP was created more than it was burned. Sky Mavis hopes that the new update will rebalance the game’s economy that slumped over the past few months and that ht new update will rebalance the economy of the entire ecosystem of the game.

We also saw the price of AXS NFTs dropping to under $50 and this is also expected to improve. Another big part of Season 20 is onboarding new players. The team created a $6 million prize fund and now offers rewards of up to 117,676 AXS tokens for the top 300,000 players of the season:

“Put simply, we’ve prioritized growth and onboard millions. Without this approach, it’s likely that Axie would have remained a small, niche game with a few thousand players.”

There was another positive announcement for SLP as well which was that Binance exchange added the SLP/BNB trading pair which means that traders can exchange the coins directly on the exchange.

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