SLP price jumps 40% after Axie Infinity announced supply reduction

The developers behind the play-to-earn (P2E) blockchain game Axie Infinity are said to be making changes to the rewards system in order to bring the project’s ecosystem back into balance. Specifically, they will reduce the supply of Smooth Love Potion (SLP) tokens by 56%, making them scarcer.

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The P2E business model developed into a niche trend at the end of 2021. His concept encompasses two elements that have captured society’s attention for centuries – entertainment and monetization.

Axie Infinity is one of the leading names in P2E, inspired by several popular games of the recent past, including Pokémon and Tamagotchi. It allows the player to collect, breed, battle, and trade creatures known as “Axies”. Players receive SLP as a reward, which can then be exchanged for in-game features such as breeding new creatures.

The team behind the project said will reduce the issuance of SLP tokens:

“Basically, daily quests were great for getting people to play daily, but now it’s become a mass emission mechanism for SLP. By removing the daily quest, we were able to reduce the release of about 45 million SLP per day.”

The developers describe the update as a “painkiller” and necessary for the future development of the game. With the upcoming changes, the supply of SLP is expected to decrease by up to 56%:

“The axie economy requires decisive and decisive action now or we risk a complete and permanent collapse. That would be even more painful.”

The team also pledged to set up a $6 million prize fund and make changes to the game rewards structure. During Season 19, Axie Infinity gave away 3,000 AXS to the top ranked players. This bonus has increased to 117,676 AXS for the top 300,000 players in the following season.

“Put simply, we have made growth a priority and attracted millions of people. Without this approach, Axie would most likely remain a small game, suitable for several thousand players.”

AXS and SLP prices are starting to rise sharply

Similar to most cryptocurrencies, Axie Infinity’s native token, AXS, has grown significantly over the past few days. It is currently trading at $64.3, up 30% from the end of January.

However, AXS is still a long way off the all-time high (ATH) of nearly $160 it hit last November.

Daily frame AXS price chart | Source: Trade View

Even more spectacular is the price increase of SLP. After the news, it rallied 40% to hit $0.024 before returning to $0.0197 at the current time.

4 hour frame SLP price chart | Source: Trade View

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