Sky Mavies has implemented new changes in the video game Axie Infinity for the economy of this small virtual nation. The main changes made to the economy have been the reduction in terms of SLP profit within the adventure and Task mode. All the details in this article.
We will explain everything related to this decision and how it will affect players in the short and long term. In addition, we will give you an anaeconomic analysis to help you understand the decision much better and realize that it was a nice turn of the wheel by Sky Mavies. We begin.
What changes were made in the new August 2021 update?
The developers of Axie Infinity have released a statement this month outlining all the changes that are coming to pro economy in Axie Infinity. A brief summary of all the changes can be summarized by clarifying that the changes are reduces SLP gain in adventure mode by half, in daily tasks by half and increases in arena mode.
In recent times and with the exponential growth of the video game, it has attracted the interest of miners and farmers with a lot of capital. This has generated a increase in SLP productionwhich, as we know, is an infinite currency, which makes it inflationary. The SLP's production ratio in terms of burning it, is currently at 5:1.
This number indicates that for every 5 SLP generated, 1 is burned.This is an equation that in the long term will lead to inflationary problems. In other words, we will be generating a lot of SLP but with little value because burning is reduced. reduce the amount of SLP that can be generated on a daily basis.
The cost of SLP, like many other cryptocurrencies, is based on supply and demand. And currently, there are too much supply for too little demandThis would have several indirect consequences that we will review throughout this article.
With this measure, it is estimated that the price of SLP will increase because it will level the production of the same with the burning, by increasing its value, the game will continue to generate attractiveness. The breeding process is the means by which SLP are burned, which makes it unaffected by inflation.
Reduced earnings in Adventure mode
If you are a gamer who knows or has been playing Axie Infinity for a few months now, you should know perfectly well that we could earn up to 100 SLP per day in adventure mode. This translated into very good earnings throughout the month, generating up to 3000 SLP monthly in this section alone.
Now, you will earn a maximum of 50 SLP per day in adventure mode, it is limited to this amount so that production is lower and equalized. This game mode was preferred by farmers and professional bots in charge of generating and generating SLP with autoclick. This process ruins the economy of the game and harms all players within the ecosystem.
The modus operandi of these farmers and bots was to give autoclick on random cards and hope to win randomly. It may seem counterproductive, but, if done on a large scale with 100 or more computers, the profits are exaggerated. And well, it is an unscrupulous activity that benefits only the people who do it, because they are devaluing the time and work invested by honest players.
SLP reduction in daily Task
This section was also modified in the last update, now you can earn only 25 SLP for completing the daily tasks. The amount before the update was 50 and it was a really good way to generate income, a month generated a balance of about 1500 SLP if you played consistently.
The reasons for this decision are basically the same as for SLP reduction earned within the adventure mode. By completing adventures in an automated way by farmers and bots, they took advantage of this section that rewards the perseverance of the players. The income generated in theory is half, but later we will see that on paper it can be higher.
Increased rewards in Arena mode
In this article we have talked about the great risk posed to everyone in the Axie Infinity ecosystem by the use of automated bots. That's why Sky Mavies wants to reward the game and work done by real people, increasing the rewards in the Arena mode. In this mode it is impossible or very difficult for a computer with autoclick to achieve any victory.
Specifically, we saw the increase in rewards for the top 1,000 players within the arena mode. Let's review the official award chart provided by Axie Infinity:
- TOP 1: Receive 225,000 AXS
- TOP 2: Will receive 175,000 AXS
- TOP 3: Will receive 137,500 AXS
- TOP 4: Receive 100,000 AXS
- TOP 5: Will receive 87,500 AXS
- TOP 6-10 Will receive 75,000 AXS
- TOP 10-20: Will receive 57,500 AXS
- TOP 21-50: Will receive 26,667 AXS
- TOP 51-100: Receive 15,000 AXS
- TOP 201-500: Will receive 2,083 AXS
- TOP 500-1000: Receive 1,000 AXS
This is the updated list of awards and it really is a good reward for all those people who strive every day to be the best.
The reward ranks in Arena are as follows:
- 1200-1249 6 SLP by Victoria
- 1250-1299 7 SLP by Victoria
- 1300-1349 8 SLP by Victoria
- 1350-1399 9 SLP by Victoria
- 1400-1449 10 SLP by Victoria
- 1450-1499 11 SLP by Victoria
- 1500-1549 12 SLP by Victoria
- 1550-1599 13 SLP by Victoria
- 1600-1649 14 SLP by Victoria
- 1650-1699 15 SLP by Victoria
- 1700-1749 16 SLP by Victoria
- 1750-1799 17 SLP by Victoria
- 1800-1849 18 SLP by Victoria
- 1850-1899 19 SLP by Victoria
- 1900-1949 20 SLP by Victoria
How does this decision affect the economics of the game?
Here comes the interesting part, many people will already be lamenting that profits in SLP will be diminished, thinking that they will make less money now. But no, using basic economics concepts we can realize the spin that Sky Mavies is trying to put on this. They detailed a graph showing peak SLP production reaching 250M, while the burn was no more than 50M.
If we put these numbers on the table, we will realize that there will be a lot of SLP for the little that will be spent and purchased. Y... What happens when there is too much supply and not enough demand? Exactly, the product drops in priceThat is what was going to happen if the SLP continued to be produced at an abysmal rate.
Reducing the amount of SLP that can be earned will level this out. because it will bring indirect consequences such as a greater number of managers who want to grant scholarships. The creation of more scholarships brings with it a higher SLP burn, this will compensate and in theory, equalize the SLP production to what is burned.
And well, it is enough to check the statistics of the day after the update to realize that the value of the SLP rose by 10% following this decision. Every change that Sky Mavies decides to implement is for the benefit of the game and the economy of the players. If they delay in making decisions and implementing them is for that very reason, they want to leave everything without a space for error.
If this decision moves forward as it should, we would be generating a smaller amount of SLP but with a lot of value. It is as if you were working for the same, but for half the effort and time, by raising the value of the SLP we would be earning more than if we were earning 100 SLP at a price of 0.19$. It is estimated that with this decision the value will increase by 100% or a number close to it.
Another decision that Sky Mavies plans to take is the rcost estimation in AXS that will take the breeding processThis decision is aimed at increasing the production of Axies in the breeding process, which has been reduced in recent times due to its high costs. This decision seeks to increase the production of Axies in the hatchery process, which has been reduced in recent times due to its high costs.
If we take stock of the situation, we will realize that it is this decision is really beneficialLet's take a look at a brief summary.
- Lower SLP production + Higher SLP burning: More token value
- Reduction in the amount of AXS to raiseMore burning of SLP and AXS because it will be a more economical process.
- Increased breeding process: More and more grants from all managers
- Increased number of scholarships awarded: More in-game trading and generate growth in demand for SLP currency.
Each of these decisions directly or indirectly affects the other, from here we see it as a right decision and we expect it to flow as expected. It is a cryptocurrency after all and predicting what its value will be is just as complicated as with any other.