Re-engineering its destiny in the GameFi landscape

Axie Infinity, in blockchain based games who have popularized play-to-earn game models, often invite admiration and suspicion. The game has made a new types of job markets and allows quick returns for gaming investors. However, in-game crypto is very volatile (Smooth Love Potion, or SLP), at hacking its Ronin chainand the result of new digital inequalities pose a threat to his existence. Axie is a form of “extreme entrepreneurship,” whose successes and failures can happen almost overnight, subject to the dynamics of SLP. Many predictions have been made made about Axie coming down and disappearing trustworthy among its players. Can Axie rise to glory in the midst of a crypto future and an uncertain global economy?

As a game lover myself, I am very interested in the future of Axie Infinity, which sparked a desire to research and learn. I interviewed more than a dozen Axie managers, guild members, and scholars – some still active, while others have stopped or are inactive – in the first half of 2022. I also watched him play Axie Infinity when asked questions to make it clear. of nitty-gritty issues in the game and assessing Axie’s mistakes and potential. I offer some strategies on how Axie can re-engineer his destiny and move forward.

Smooth is expected for SLP

One of the mistakes Axie made was making too many requests for SLP. The influx of new players needs to remain steady but not grow too much in order to provide a smoother demand curve for SLP. This can extend the shelf life of the game. The cost of acquiring Axies (digital creatures that can be collected in the game that can be used in combat and trade) – which will affect the way investors and new players plan their return on investment (ROI) and manage their appetite for recruiting new scholars – should be. kept steady but slightly grown over time.

Another mistake is that Axie has been dominated by players from low-paying countries. This happens because the SLP obtained is better compared to the local standard of living. However, it is very risky to bet on one group of players. Risk diversification is necessary. Axie can attract players from medium- to high-wage states and focus on the “fun factor” game while putting the “earning factor” as a bonus. A move to a play-for-yourself model, where players have a say in game development, is necessary.

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One of the biggest mistakes is the abuse of Axie Infinity by multi-account players, which increases the supply of SLP. I heard a story from a single player who played on upwards of 50 accounts using multiple phones. Axie is too slow to respond to this problem.

Balance the supply of SLP

Another mistake is the economy in the Axie game that rewards SLP players for all the battles they win. This resulted in a large supply of SLP, which led to a fall in price. One strategy to correct this is to introduce other equilibrium mechanisms that burn SLP. Examples include having an SLP penalty for those who lose a battle.

Another problem is that many players don’t get the SLP money they win. A healthy SLP cashing out ratio is needed to prevent SLP oversupply. Axie needs to keep the “gas fee” on cash out SLPs extremely low, and can introduce a time -based system to cash out SLPs or lose, and set the optimal Axies breeding cost for burning more SLPs.

The element of uncertainty is important in the economics of the game to prevent the game from being exploited by players. Unfortunately, Axie can only guess at how a player can win SLP. Other strategies would provide a delay between breeding and birth of new Axies, or even increase some SLP costs for raising baby Axies.

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Creating an Axie business model

A key component of Axie Infinity’s business model is the SLP price, which is influenced by many factors: SLP supply and demand, Axies supply, crypto regulations, crypto volatility and the behavior of SLP traders. Thus, the price of SLP is partly adjustable and partly beyond Axie’s influence. Nansen approximately that Axie’s revenue of $ 1.35 billion (from May 2021 to May 2022) is mostly from breeding costs (85%) and market costs (13%). This shows how limited Axie’s revenue sources are. Axie Infinity must find ways to expand its revenue sources beyond breeding and market costs.

A more creative business model is needed. To increase the number of new players, Axie needs to innovate and offer a gaming experience beyond the static environment of a small square battlefield, which is very boring for players. Small monsters can be allowed to travel around Lunacia’s world and face danger (e.g., a potentially deadly outbreak) or an Axie -eating animal that will burn SLP or reduce supply. Players should be allowed to combine Axies with other players ’Axies in a colossal battle against other Axies – much like the epic battle in the anime series mecha Gundam – thus adding new demand for SLP. Developing games together with indie developers is important, but this requires a profit -sharing model in order to work. Axie could also change the approach of Pokémon Go by allowing players to spend money on decorations, avatars and merchandise to increase their source of income.

Some of my informants suggested that Axie should allow “burning SLPs to upgrade to powerful Axies,” “grow the AXS market,” and “host global esports tournaments.” Esports is one of the most lucrative arenas that Axie can mark.

Another mistake was the lack of communication between Sky Mavis, developer and publisher Axie Infinity, and the community. Many of my informants reported that Axie’s plans for the future were cloudy. There have also been complaints about the “power play” displayed by Sky Mavis ’core team to the Axie Infinity community. This requires a cultural adjustment in the Axie ecosystem.

The future of Axie Infinity is not bleak

In the middle of this crypto season, Axie sold more than 325,000 Axies for a total of more than 3,500 ETH, approximately $ 3.9 million. In a real -time in -game experiment with several Axie scholars in June 2022, the time to find enemies for each battle remained the same, showing that there were still many Axie players out there, contrary to predictions that most players would go away. Axie. However, there is a temptation for Axie’s players and managers to join another play-to-earn game. This is a new battle for Axie: “switchers”.

Axie Infinity may not have lost it all. Most likely it will reinvent itself and draw a new destiny in the fast-changing GameFi landscape. GameFi is here to remain as a space for experimentation in the Metaverse that blurs the boundaries between fun and work / investment.

This article does not contain any investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.

The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph or Hong Kong Polytechnic University or its affiliates.