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Introduction
Axie Infinity is a play-to-earn game developed by Sky Mavis. It is the most well-known crypto game.
Innovation 5.5
Differential: 7
Axie Infinity popularized the idea of play-to-earn games. In the game, characters are NFTs and the game's currency is a crypto token that can be sold on the market or used to create new NFTs.
Although it was not the first crypto game or the first to generate income for players, it became the most popular, generating considerable gains for its users at its peak in 2021.
Utility: 4
The AXS token is presented as a governance token, although currently it does not give the right to vote on project decisions. In the future, it is expected to provide rights to the game's Treasury, which contains hundreds of millions of dollars in its own token and ETH.
In practice, AXS is more grounded today as a second game currency. It is used for character breeding, sharing this function with the SLP token received by players.
Ecosystem 5.0
Adoption: 3
The DApp has been averaging 40,000 daily transactions and a daily volume of $3 million in the last month, according to DappRadar data. Although it is one of the most used DApps in crypto, it has been experiencing a sharp decline since its peak in late 2021.
Activeplayer reports its monthly active users at 382,000 on April 17, 2023, a significant drop from 2.7 million in January 2022.
Development: 7
The Sky Mavis studio behind the game has been developing different game modes, including new mechanics and the use of lands. The current expectation revolves around the Lunacia SDK, which should offer tools for creating new games and aims to make the project a Metaverse.
Other expectations revolve around progressive decentralization and the allocation of the Treasury in the future. As the decentralization goals set by Sky Mavis are not likely to be achieved, a committee will be formed to discuss solutions soon, with an embryo already in operation.
Tokenomics 2.7
Inflation: 3
The token has a total supply of 270 million tokens, with an estimated 200 million tokens already distributed. Of those, around 115 million AXS are currently circulating in the market, indicating a potential inflation of around 134% over the next 3 years.
In addition to the undistributed tokens, there are over 22 million AXS deposited in the Treasury and 48 million locked in staking (as of April 17, 2023), which are likely to be withdrawn when the distribution of rewards ends in 2026.
Distribution: 4
The share held by Sky Mavis and advisors amounts to 28%, which, while considerable, is not high compared to other crypto projects. It is noteworthy that 29% of the distributed tokens are in the form of staking rewards, which brings high dilution in exchange for a temporary withdrawal of tokens from the market.
There is a 15% share distributed to players as an adoption incentive, and another 8% for ecosystem development, the main form of investment in the project's expansion. The remaining 15% was allocated in two sales, a private one of 4% and a public one of 11%.
Sustainability: 1
Axie Infinity is one of the crypto projects most associated with a pyramid scheme, as players were attracted with the promise of high earnings that could only continue with the entry of new players.
When this entry decreased, earnings began to decline and the game was abandoned by the vast majority of players. Sky Mavis is trying to revive the game by controlling token issuance and bringing new content, but so far without success.
Safety 1.7
System: 0
It was the direct target of the largest hack in history when the Ronin Bridge, the contract that transfers tokens from Ethereum to its sidechain, was stolen for $624 million in ETH and USDC.
Sky Mavis took the network offline for 3 months, which, according to critics, was aimed more at preventing a run on the token than fixing the problem. Users were only compensated after this period, when the price of ETH, the main target of the hackers, had already collapsed by 65%.
Market: 3
The token soared from an initial price of 0.18 cents to a high of $158, accumulating gains of over 87,000%, and became one of the biggest sensations of the last bull run. It is currently trading at around $9, a drop of almost 95% since then, but still well above the initial price.
NFTs that once had a floor of $500 at the end of 2021 can now be purchased for as little as $1.50. The token was also marked by high volatility in 2021, with rises and falls of tens of % in a single day, even without clear reasons.
Decentralization: 2
The project has had decentralization in its roadmap from the beginning, although these plans are progressing slowly. In late 2022, the first step was taken with the formation of a council that will have voting power over resource allocation, subject to approval by the team and likely within the scope defined by Sky Mavis.
There is a considerable concentration of tokens, with the 10 largest wallets, excluding contracts, controlling at least 16% of the tokens. Sky Mavis CEO, Trung Byguen, was involved in controversy after moving more than $3 million in AXS to Binance before publicly announcing the Ronin Bridge hack.
Final rate: 3.2
