Grow in the uptrend, survive in the downtrend. Although there are many gamefi play-to-earn released, still no gamefi can beat Axie Infinity both revenue as well as the number of players involved. So what is so attractive about AXS that attracts a large number of users as well as the FOMO. In this report, let’s analyze the operating model and how AXS connects with users. From there evaluate whether AXS can continue to stand in this gamefi market.
What is Axie Infinity?
When it comes to play-to-earn, Axie Infinity will be the first name mentioned, Axie Infinity’s revenue was sometimes up to millions of dollars per day. Highest price ever reached $166 it x16600 compared to the launchpad binance price: $0.01. At axie Infinity, you can enjoy monster-battling game where you pit teams of cute monsters called Axies against each other in battles. The game runs on the Ethereum blockchain with the help of Ronin, a sidechain that helps minimize fees and transaction delays. It’s focused on turn-based battles, either against computer-controlled Axie teams or live opponents over the Internet. And Axie Infinity developed by a Vietnamese team.
Product
Axie Infinity is a game universe filled with fascinating creatures, Axies, that players can collect as pets, taking inspiration from games like “Final Fantasy Tactics” and “Idle Heroes”. Players aim to battle, breed, collect, raise, and build kingdoms for their axies. The universe has a player-owned economy where players can truly own, buy, sell, and trade resources they earn in the game through skilled gameplay and contributions to the ecosystem.
Some of the main functions in the game:
Battling: Â Each player must have their own Axies (pets) to join a battle. They can choose from 2 game modes::
- Adventure Mode (PvE) for casual players: Players battle against monsters.
- Arena Mode (PvP) for experienced players: Players fight over other players.
Axes can be bred like real-world pets to create new offspring. To avoid hyperinflation of axes, there is a maximum of seven times an axie can be bred before it is sterile. Breeding an axe costs AXS and some Smooth Love Potions depending on how many times the axe has been bred. The AXS portion is variable and subject to adjustment based on various economic factors.
Lunacia, the Axie homeland, is divided into tokenized plots of land which act as homes and bases of operation for their Axies. Plots can be upgraded over time using a variety of resources and crafting ingredients that can be found when playing the game. Currently, you can stake land. In addition, land-owners might find AXS tokens on their land plots, or use the axes that occupy the land plot to explore resource nodes on the map. When interacting with resource nodes, Axies can find AXS and potentially other resources.
Resource Gathering and Crafting
- Resources will spawn in nodes across Lunacia and be used to upgrade both land and Axies.
- Landholders will have first rights to any resources that spawn on their land.
Marketplace: Â Decentralized market, where players can trade their valuable items (Axie, land,..) created from the games.
Axie Infinity has all the basic and necessary pieces of a play-to-earn game. Players can play games for fun, to earn money, can trade in-game items. And ecosystem is created for players.
Axie Economy & Long-term Sustainability
Axie Principle
- Axie is a new type of game that rewards players for the time and effort they spend playing the game and growing the ecosystem.
- Axie has a 100% player-owned, real money economy. Rather than selling game items or copies, the developers of the game focus on growing the player to player economy. Marketplace fees go into a Community Treasury whose usage will be guided by AXS holders. Axies are created by players using in-game resources (SLP & AXS) and sold to new/other players. You can think of Axie as a nation with a real economy. The holders of the AXS token are the government that receives tax revenues. The inventors/builders of the game, Sky Mavis, hold ~20% of all AXS tokens.
Axie population growth is a major factor within the Axie ecosystem. Too slow, and Axie prices are too high for everyday people to join; exceptionally competitive Axies. Too fast, and you get unhealthy inflation. AXS / SLP tokens face similar economic forces that need to be managed.
Economic Sustainability
Long-term the economy will be sustained by adding:
- Additional valuable utility to Axies. New and improved experiences such as Land, Mini-games, and Battle. New experiences outside of Battle will also add utility to Axies beyond their effectiveness in fleeting metas. Players will constantly have new goals to reach within the Axie universe. Ultimately, the demand for Axies will come from the intrinsic value they can provide to players in the form of competitive, social, and progression-based fun and achievements.
- Vertical, rather than purely horizontal progression. Currently, in order to progress the main path to progress in Battle is by expanding the size of one’s collection. This dynamic is not optimal long term. In the long run, upgrades to Axies, Land, and other assets will require crafting ingredients.
- Accessibility improvements that help unlock sustainable value. There are various points of friction currently for players to be able to dive into Axie Infinity to compete, have fun, and socialize with the community.
In the beginning to maximize growth, by design, Axie economy will be dependent on new entrants. New players require Axies to get started and it is important to ensure there are enough Axies being bred to make obtaining them accessible.
Source of Capital
- Advertising and sponsorships: Many projects are already eager to distribute rewards and tokens to the Axie economy. So far MakerDAO, AAVE, and Kyber Network have done experimental token drops to Axie players. Axie is already the largest community of people who understand how to use Blockchain technology in the world; there is immense value in advertising to a community like this. FTX also Sponsor Axie Infinity Players
- Physical / digital merchandise: This is already a frequent request from dedicated players who would like more physical and/or digital merchandise to be able to express and show-off their attachment to the game. Merchandise could range from exclusive official Axie Art NFTs to T-shirts to Plushies. Profits would go back into the game to be distributed to players.
- Offline events: The global Axie community has built extremely strong bonds with each other and meeting other Lunacians in real life is a valuable part of the Axie experience. Profits from major community events would go back into the game to be distributed to players.
Although many Axie players have earned significant returns on their efforts and purchases, many have also played just for the fun and social community. They are excited to devise unique Axie battle strategies to climb the leaderboard or just hang out with new friends in the community. They value these experiences more than any potential earnings. These players make the economy stronger in the long run and Sky Mavis strives to help more players gain this value in the long-term.
Verdict
With the above information hopefully you will have a more useful overview of Axie Infinity. In the next part we will go to analyze the Business Modle game. See the flow money in the ecosystem.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Alan
Coincu Ventures
Author
Grow in the uptrend, survive in the downtrend. Although there are many gamefi play-to-earn released, still no gamefi can beat Axie Infinity both revenue as well as the number of players involved. So what is so attractive about AXS that attracts a large number of users as well as the FOMO. In this report, let’s analyze the operating model and how AXS connects with users. From there evaluate whether AXS can continue to stand in this gamefi market.
What is Axie Infinity?
When it comes to play-to-earn, Axie Infinity will be the first name mentioned, Axie Infinity’s revenue was sometimes up to millions of dollars per day. Highest price ever reached $166 it x16600 compared to the launchpad binance price: $0.01. At axie Infinity, you can enjoy monster-battling game where you pit teams of cute monsters called Axies against each other in battles. The game runs on the Ethereum blockchain with the help of Ronin, a sidechain that helps minimize fees and transaction delays. It’s focused on turn-based battles, either against computer-controlled Axie teams or live opponents over the Internet. And Axie Infinity developed by a Vietnamese team.
Product
Axie Infinity is a game universe filled with fascinating creatures, Axies, that players can collect as pets, taking inspiration from games like “Final Fantasy Tactics” and “Idle Heroes”. Players aim to battle, breed, collect, raise, and build kingdoms for their axies. The universe has a player-owned economy where players can truly own, buy, sell, and trade resources they earn in the game through skilled gameplay and contributions to the ecosystem.
Some of the main functions in the game:
Battling: Â Each player must have their own Axies (pets) to join a battle. They can choose from 2 game modes::
- Adventure Mode (PvE) for casual players: Players battle against monsters.
- Arena Mode (PvP) for experienced players: Players fight over other players.
Axes can be bred like real-world pets to create new offspring. To avoid hyperinflation of axes, there is a maximum of seven times an axie can be bred before it is sterile. Breeding an axe costs AXS and some Smooth Love Potions depending on how many times the axe has been bred. The AXS portion is variable and subject to adjustment based on various economic factors.
Lunacia, the Axie homeland, is divided into tokenized plots of land which act as homes and bases of operation for their Axies. Plots can be upgraded over time using a variety of resources and crafting ingredients that can be found when playing the game. Currently, you can stake land. In addition, land-owners might find AXS tokens on their land plots, or use the axes that occupy the land plot to explore resource nodes on the map. When interacting with resource nodes, Axies can find AXS and potentially other resources.
Resource Gathering and Crafting
- Resources will spawn in nodes across Lunacia and be used to upgrade both land and Axies.
- Landholders will have first rights to any resources that spawn on their land.
Marketplace: Â Decentralized market, where players can trade their valuable items (Axie, land,..) created from the games.
Axie Infinity has all the basic and necessary pieces of a play-to-earn game. Players can play games for fun, to earn money, can trade in-game items. And ecosystem is created for players.
Axie Economy & Long-term Sustainability
Axie Principle
- Axie is a new type of game that rewards players for the time and effort they spend playing the game and growing the ecosystem.
- Axie has a 100% player-owned, real money economy. Rather than selling game items or copies, the developers of the game focus on growing the player to player economy. Marketplace fees go into a Community Treasury whose usage will be guided by AXS holders. Axies are created by players using in-game resources (SLP & AXS) and sold to new/other players. You can think of Axie as a nation with a real economy. The holders of the AXS token are the government that receives tax revenues. The inventors/builders of the game, Sky Mavis, hold ~20% of all AXS tokens.
Axie population growth is a major factor within the Axie ecosystem. Too slow, and Axie prices are too high for everyday people to join; exceptionally competitive Axies. Too fast, and you get unhealthy inflation. AXS / SLP tokens face similar economic forces that need to be managed.
Economic Sustainability
Long-term the economy will be sustained by adding:
- Additional valuable utility to Axies. New and improved experiences such as Land, Mini-games, and Battle. New experiences outside of Battle will also add utility to Axies beyond their effectiveness in fleeting metas. Players will constantly have new goals to reach within the Axie universe. Ultimately, the demand for Axies will come from the intrinsic value they can provide to players in the form of competitive, social, and progression-based fun and achievements.
- Vertical, rather than purely horizontal progression. Currently, in order to progress the main path to progress in Battle is by expanding the size of one’s collection. This dynamic is not optimal long term. In the long run, upgrades to Axies, Land, and other assets will require crafting ingredients.
- Accessibility improvements that help unlock sustainable value. There are various points of friction currently for players to be able to dive into Axie Infinity to compete, have fun, and socialize with the community.
In the beginning to maximize growth, by design, Axie economy will be dependent on new entrants. New players require Axies to get started and it is important to ensure there are enough Axies being bred to make obtaining them accessible.
Source of Capital
- Advertising and sponsorships: Many projects are already eager to distribute rewards and tokens to the Axie economy. So far MakerDAO, AAVE, and Kyber Network have done experimental token drops to Axie players. Axie is already the largest community of people who understand how to use Blockchain technology in the world; there is immense value in advertising to a community like this. FTX also Sponsor Axie Infinity Players
- Physical / digital merchandise: This is already a frequent request from dedicated players who would like more physical and/or digital merchandise to be able to express and show-off their attachment to the game. Merchandise could range from exclusive official Axie Art NFTs to T-shirts to Plushies. Profits would go back into the game to be distributed to players.
- Offline events: The global Axie community has built extremely strong bonds with each other and meeting other Lunacians in real life is a valuable part of the Axie experience. Profits from major community events would go back into the game to be distributed to players.
Although many Axie players have earned significant returns on their efforts and purchases, many have also played just for the fun and social community. They are excited to devise unique Axie battle strategies to climb the leaderboard or just hang out with new friends in the community. They value these experiences more than any potential earnings. These players make the economy stronger in the long run and Sky Mavis strives to help more players gain this value in the long-term.
Verdict
With the above information hopefully you will have a more useful overview of Axie Infinity. In the next part we will go to analyze the Business Modle game. See the flow money in the ecosystem.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.
Alan
Coincu Ventures
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