One of the most important aspects of the Axie Infinity game is SLP or the Smooth Love Portion. For a while, the Axie Infinity game has grown to become one of the biggest games in the NFT space. However, there has been a problem with the ecosystem, which the new Axie burning mechanism aims to fix.
Why the Need for an Axie Infinity Burning Mechanism?
The Axie Infinity ecosystem is powered by the SLP token, which is used to create new Axies. However, as the Axie Infinity ecosystem has grown, the economy has begun to suffer. The reason for this is that as more SLP is created, the value keeps falling. Besides that, as more Axies are created, it means that the value of Axies would keep falling. However, the developer team has been working on a solution called the Axie Release.
The Axie Release Explained
The Axie Release is a mechanism that has been in the works for a while. Its goal is to ensure that there is economic balance brought back to the ecosystem. Essentially, Axie Release is used to burn Axies and SLP tokens. The burning mechanism is going to ensure that there is not an oversupply of Axies and SLP. Doing so will ensure that the Axie Infinity ecosystem can deal with the issue of inflation.
Releasing allows users to release their Axies to live independently within Lunacia. In return, the former owners are given rewards, which include special Lunar New Year land items. Sky Mavis, the lead developer at Axie Infinity, has stated that Axie Releasing has always been a key component of the Axies’ life as well as the economic model.
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While the current Axie Releasing is a trial feature, it is going to be rolled out fully in the future. The current release will be used to gather data and make adjustments for future releases. Just like burning, Axie Releasing ensures that the tokens can no longer be used within the ecosystem.
Burning tokens is a common mechanism used by many blockchains to preserve the economy of the ecosystem. By burning tokens, it reduces supply, which curbs inflation. A burning event ensures that the reduced supply will mean that remaining tokens could see their value rise. In the case of Axie Infinity, it could mean that the value of remaining NFTs sees a positive price bump.
As of January 29, 2022, 91,642 Axies had been released by 34,685 participants. Anyone can view the figure by visiting the events page. The current trial program is set to end on February 20, 2022.
Those who release their Axie NFTs will be given some rewards. Numerous items will be offered as gifts. They include:
- Assorted Firecrackers (35% chance)
- Traditional Snack Box (35%)
- Blossom Tree (20%)
- Lucky Lantern (9%)
- Crimson Tiger (1%)
Every player that releases an Axie NFT is eligible for a gift.
Mixed Reactions From the Community to the Burning Mechanism
The Axie Infinity community has reacted with mixed reactions, most of them being generally positive. However, some feel that for those without land, burning Axies would offer them little to no benefits. The sentiment was driven by the fact that there was no utility provided for the gift items for those who release their Axies.
The community is also coming up with numerous ideas for a SLP burning mechanism.
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