Axie Infinity introduces supply cap and deflationary target for reward token “SLP”

Review of SLP token design

Sky Mavis, the developer of the popular blockchain-based game Axie Infinity, announced on the 11th a design change to the Smooth Love Potion (SLP), a cryptocurrency that serves as an in-game reward.

The current supply of SLP is approximately 4.14 billion, but this will be limited to 44 billion. Furthermore, SLP has set a deflation target of 2%, and a stabilization fund has been introduced that will buy back SLP if it exceeds this target, and sell SLP if it falls below.

The purpose of this is to maintain a balance between SLP supply and demand while stabilizing the economic zone and ensuring the long-term sustainability of SLP.

Smooth Love Potion (SLP) is an important asset within the Axie ecosystem. A serum injected into the eggs of the game’s characters (Axie), which dramatically shortens the hatching period.

SLP tokens are given as rewards to players who participate in the game, but when players use them to breed or raise Axies, they are “burned” and permanently destroyed. This is designed to reduce the number of SLP tokens in circulation and increase their value.

connection:Axie Infinity, a first attempt on the Apple App Store, uses external NFTs on iOS

Emphasis on the impression left on the user

In fact, over the past year, SLP has experienced significant deflation, with the amount of SLP incinerated being more than three times the amount of SLP minted, and the deflation rate in 2023 being 2.8%, Sky Mavis said. states. However, the fact that the supply of SLP is unlimited was not fully understood by market participants and community members, leading to the formulation of a new monetary policy.

The mechanism of the SLP Stable Fund is that for every 10 SLPs burned, 2 SLPs will be issued and sent to a specific wallet. This wallet is initially supplied with 60,000 USDC, and at the end of each month, it calculates the annual SLP deflation rate for that month, and if the annual SLP deflation rate is less than 0%, the USDC is used to redeem SLP. buy back. Conversely, if the annual SLP deflation rate exceeds 2%, SLP will be sold to USDC.

Axie Infinity is a game where players raise NFT pets called Axies, compete against them, and trade them. On August 6, 2021, Axie Infinity announced on its official Twitter that the number of daily active users (DAU) has exceeded 1 million.

This game uses two unique crypto assets (virtual currencies): Axie Infinity Shards (AXS) and Smooth Love Potion, which is given to players through gameplay. (SLP).

Although SLP is not handled by crypto asset exchanges in Japan, the governance token AXS is listed on multiple exchanges including bitbank, Binance Japan, and Coincheck.

connection:Axie Infinity (AXS) | Investment information/real-time price chart

The post Axie Infinity introduces supply cap and deflationary target for reward token “SLP” appeared first on Our Bitcoin News.