Why do in-game creatures matter being NFTs? Check out this article for more info!
Axie Infinity is a game that you can play on the PC, iPhones, and Android phones. The central gameplay concept is that of a team of 3 Axies with different skills. These creatures are not only used in battles against artificial intelligence but also against other humans on a real-time basis.
Must Read: Axie Infinity (AXS) White Paper.
What sets it apart from other games?
Axie Infinity is a blockchain-based game where some of the in-game items are limited edition. Each limited edition item is certified to be unique or it’s the only one of its kind on the planet.
One popular digital asset is “Charlie Bit My Finger” – a YouTube video that was placed as a Non-Fungible Token and sold for more than $760,000.
New and scarce digital objects created by NFTs may lead to a perceived increase in value for digital content. Utilizing this technology could help promote the continued viability of the digital economy.
The monsters in the game are Non-fungible Tokens, which means that any Axie that you breed in the game is a unique digital object.
New Fighting Techniques are great to have, especially when you can’t practice them in real life.
The game creates a trading economy revolving around these Axies or monster NFTs. It takes time & effort to breed a unique monster NFT. By playing and battling, you can win tokens. These tokens can be bred together to create a new, unique NFT.
NFTs are non-fungible tokens which means that each one can be distinguished from another. The NFT minting process makes it so that every NFT is copied exactly to the blockchain. An NFT is minted on the immutable blockchain. The data recorded is tamper-proof and the records are virtually impossible to eradicate or manipulate. In theory, a bank would control the value of fiat currency. With blockchain technology though, you can have a trusted entity validate where and how hard Monsters are being worked on. This validation results in them having intrinsic value
Nowadays, the minting of NFTs has become a crucial element. It’s not unusual for in-game items to be traded for real money in games like MMORPGs. For example, there was a time when an in-game item like a rare weapon could be sold for real money. But for this unofficial economy to work, the game developers had to allow players to trade these in-game assets with one another, this approach carries the risk of fraud and it is possible that in-game items are just duplicated instead of obtained legitimately.
Taking this into account, Axie Infinity is trying to ensure that these issues are not an obstacle for the game.
One popular game that attempted to institutionalize in-game trading with real money was Diablo 3. Players could swap their loot for cash in the Auction House system.
The system had a side-effect on the game’s ‘item drop’ mechanic. Players would play on and on just to get a better item from an enemy, but with this system, players wouldn’t need to keep playing as they were getting quality items all the time. The majority of games that use this system see their players “donating” their money to the game developers, rather than actually playing for items. This turns out to be problematic for most player experiences.
Axie Infinity is a “play-to-earn” game that features hybrid gameplay elements. Gamers are buying gaming NFTs at a high rate to try get tokens or breed monster items. These items are worth real-world money to gamers, so they are continuously trying to make’s playing well for the chance to do this. The Auction House system for Diablo 3 had the unintended result of making players focus more on acquiring gear through auctions rather than playing well to get it.
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Axie Infinity’s economy is stable?
As of publication, the cheapest monster NFT is around US$200.
The starting cost is P30,000 (US$600) but it goes to paying US$0.60 (P200) for each booster box
Here are some of the cheapest monsters on the marketplace:
So there are a million active users on Axie Infinity each day. But not all of them are playing which it clarified: “Some players just download the game client and don’t even own Axies.”
Why are they so expensive?
The use of NFTs and scarcity tokens to establish scarcity and scarcity tipping points allows new levels of trust in the Axie Infinity economy. And while the tokenized economy is without question shaped by traditional supply-and-demand forces, we continue to see that both digital and traditional forms of items trading hands with ease on the marketplace.
NFT prices have gone up with the increase in popularity & demand. This is especially true in places like the Philippines
Filipino locals began to be interested in the game Axie Infinity as early as May 2021, as shown by a YouTube video of Cabanatuan City residents playing it and earning from it, which was published on May 13, 2021
Yung and Gamboa, two Filipino co-founders, and McDonald, a Canadian founder hope to seize the opportunity to tap into the growing mobile gaming market.
The media push led to the video being featured on Venturebeat, CNBC, and Hypebeast, on top of some Filipino websites like Esquire.ph and Spin.ph within a week after it was published.
There’s been a lot of talk about this app recently, which is confusing considering it hasn’t even been released yet. But the promise of getting rich quick has sustained people’s interest.
Token Terminal, an application for tracking crypto assets, has seen the volume of Axie Infinity transactions steadily rise throughout May until beginning to grow substantially in late June and early July.
Giving $7.6 million to Axie Infinity is something Mark Cuban, the Dallas Mavericks owner and investor on TV show Shark Tank should be proud of.
Within the same time span, Yield Guild Games saw two rounds of funding – $4m in Jun 2021 and $4.6m in Aug 20 – showing that the play-to-earn industry is continuing to grow.
How Yield Guild Games Work?
Yield Guild Games offers to lend out rare monster NFTs to players on a budget who are interested in the game. These players are called “scholars” and Yield Guild Games is known as “investors.”
If this Kickstarter succeeds, the general deal is that I will get 70% of project income, and Yield Guild Games will get 30%.
Essentially, this is the traditional earning ratio for investors and scholars.
Companies have high start-up costs, so some have opted to use AI as a cost-effective way of launching their businesses. Anyone can invest a little time in the community by playing the game as an investor but Yield Guild Games is taking it a step further by institutionalizing this relationship. They have a team of knowledgeable and experienced people who have been tasked with advising players on their investments based on personal playstyle.
“As a provider of scholarships for Axie Infinity, we’ve developed an innovative model that allows players to borrow our in-game assets and earn an income from playing without the need to invest at all. Since its inception in 1992, YGG has seen an increase of more than 4,700 scholars in total, with over 2,500 being Filipino. The company earned 43M SLP (US $8.6M) in Axie Infinity to date.
How do players earn?
Players can cash in their tokens on a regular basis. You can earn both SLP tokens and AXS tokens in the game. The former is often earned, while the latter is obtained through leveling up your characters. The AXS is a proposed governance token that you can use to have a say in how the game is being developed.
There are many alternate ways for people to make money from the game.
The SLP and AXS can both be traded just like any other crypto.
How do the game makers earn from this?
SkyMavis is a Vietnamese Moba studio that earns a 4.25% cut on every item, including the monster NFTs, sold in its marketplace. It also takes a cut from breeding fees imposed on players.
Having a larger player base makes the game more profitable because there are more people trading with each other. This brings in more revenue for the company. Last month, the total amount of trades on our marketplace was $1.02 billion, with 1.65 million monster NFTs or Axies sold.
This is a question worth asking- Is Axie Infinity a Ponzi scheme? It may be too early to say for certain, but one crypto expert has been keeping tabs on the game and their views have been published for everyone to see.
Individuals who are worried that new monsters or Axies will break supply may have no need to worry. There are two possible scenarios. Either the demand for NFTs/Axies is being met, so there is no more room for new buyers, or the demand continues but nobody buys the same ones more than once. The Axies species and the tokens required for producing new Axies are becoming more affordable. This poses a potential problem to those who invested in these products initially.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.