Axie Infinity

Axie Infinity (AXS): A Comprehensive Guide

What is Axie Infinity (AXS)?

Axie Infinity (AXS) is the governance token for Axie Infinity, a blockchain-based game where players collect, breed, battle, and trade digital pets called Axies. Launched in 2018 by Sky Mavis, a Vietnam-based game studio, Axie Infinity has become one of the most successful play-to-earn (P2E) blockchain games in the cryptocurrency space. AXS, which stands for Axie Infinity Shards, serves as the ecosystem's native cryptocurrency token built on the Ethereum blockchain as an ERC-20 token.

How Does Axie Infinity (AXS) Work?

The Axie Infinity (AXS) token operates within a complex ecosystem that combines gaming, NFTs, and decentralized finance. The game's economy runs on two primary tokens: AXS and Smooth Love Potion (SLP). While SLP is earned through gameplay and used for breeding Axies, AXS functions as the governance token that powers various aspects of the ecosystem.

AXS works through the following mechanisms:

• Governance: AXS holders can vote on game development decisions and influence the future direction of the Axie Infinity ecosystem
• Staking rewards: Users can stake their AXS tokens to earn more AXS
• Payment token: AXS is used for purchasing in-game items and Axies on the marketplace
• Breeding fee: A portion of AXS is required (along with SLP) to breed new Axies

AXS Staking and Mining

Axie Infinity (AXS) offers staking opportunities but does not support traditional mining. Here's a breakdown of how AXS staking works:

AXS Staking

In September 2021, Axie Infinity introduced AXS staking, allowing token holders to lock up their AXS in a smart contract to earn additional AXS as rewards. The staking mechanism serves multiple purposes:

• It encourages long-term holding of AXS tokens
• It distributes rewards to community members who support the ecosystem
• It gives stakers a say in governance decisions

To stake AXS, holders can connect their wallet to the Axie Infinity staking dashboard and deposit their tokens. Rewards are calculated based on the amount staked and the staking period, with rewards distributed continually. The annual percentage yield (APY) varies based on the total number of tokens staked across the platform.

Mining in Axie Infinity

Axie Infinity (AXS) does not offer traditional mining opportunities as found in proof-of-work cryptocurrencies like Bitcoin. Instead, AXS is pre-minted with a fixed maximum supply. New AXS enters circulation primarily through:

• Staking rewards
• Play-to-earn rewards
• Community treasury distributions

What is AXS Used For?

Axie Infinity (AXS) has multiple utilities within the Axie ecosystem:

Governance

AXS token holders have voting rights on key decisions affecting the Axie Infinity ecosystem, including game features, fee structures, and treasury fund allocations. This makes AXS a true governance token that gives the community ownership over the game's future.

Staking

As mentioned earlier, users can stake their AXS tokens to earn additional tokens as rewards. This creates an incentive for long-term holding and participation in the ecosystem.

In-Game Payments

AXS is used along with SLP (Smooth Love Potion) as payment for breeding new Axies. Each breeding action requires a certain amount of both tokens, with the AXS portion serving as a fee that helps control the Axie population.

Marketplace Transactions

AXS is used for purchasing Axies, land, and items on the Axie Infinity marketplace, making it an essential part of the game's economy.

AXS Token Distribution

When Axie Infinity (AXS) launched, the token had a well-defined distribution strategy. The total supply of AXS is capped at 270 million tokens, distributed as follows:

• Play-to-Earn (20%): 54 million AXS allocated to reward players for participating in the game
• Staking Rewards (29%): 78.3 million AXS set aside for staking rewards
• Team (21%): 56.7 million AXS allocated to the founding team and advisors, with vesting periods
• Ecosystem Fund (20%): 54 million AXS for ecosystem development, including grants and partnerships
• Public Sale (8%): 21.6 million AXS sold to the public during token sales
• Private Sale (2%): 5.4 million AXS sold to private investors

The token was launched with a gradual release schedule spanning multiple years, with many allocations subject to vesting periods to ensure long-term alignment of interests.

Additional Information About Axie Infinity (AXS)

Ronin Sidechain

To address Ethereum's high gas fees and slow transaction times, Axie Infinity developed its own Ethereum sidechain called Ronin. This custom-built sidechain significantly reduces transaction fees and increases processing speeds for Axie-related transactions, making the game more accessible to players worldwide.

Land Gameplay

Axie Infinity features a digital land system where players can purchase, develop, and monetize virtual plots. These land NFTs represent one of the most valuable assets within the Axie ecosystem, with some rare plots selling for substantial amounts of AXS.

Axie Infinity Scholarship Program

The game pioneered the concept of "scholarships," where Axie owners lend their digital pets to new players (scholars) who cannot afford to purchase their own. The earnings are then split between the owner and the scholar, creating a unique revenue-sharing model that has helped onboard millions of players worldwide.

Trade AXS with Cryptohopper

Axie Infinity (AXS) can be traded on various cryptocurrency exchanges, and anyone can easily trade this currency using the automated trading bot provided by Cryptohopper. Cryptohopper's platform allows for efficient AXS trading with features like automated buy and sell orders, technical analysis tools, and portfolio management—all without requiring you to monitor the markets 24/7. Whether you're an experienced trader or just getting started, Cryptohopper offers a user-friendly solution for trading AXS and hundreds of other cryptocurrencies across multiple exchanges.