What is Axie Infinity?

Axie Infinity is part of a new trend in gaming, called ‘play-to-earn’, which combines cryptocurrency and game-play. The Axie Infinity boom really took off in the Philippines, whose economy was particularly badly affected by the Covid-19 pandemic. Unable to work in their normal roles due to lockdown, many turned to Axie Infinity as a source of income – and have continued to play-to-earn once restrictions lifted. 

But how does Axie Infinity actually work? And what are the possible risks for children and young people? 

What is Axie Infinity? 

Axie Infinity is a digital pet community in which you buy creatures – called Axies – and use them to battle, explore and breed with other Axies. It’s developed by the gaming company Sky Mavis and runs through the cryptocurrency Ethereum. The game has an 18+ age rating, but with its Pokémon-style design and no clear age-verification process, it’s visually appealing to younger children. To play, you first need to buy three Axies with Ethereum. Purchasing these initial Axies can cost the cryptocurrency equivalent of up to $200 or ₱10,000. Axie is currently working on creating a less expensive version of the game that could be free to play and available to download in the App Store or Google Play Store. 

Sky Mavis have developed their own digital wallet called Ronin which you can link to Axie Infinity. Once linked, you can purchase Axies through your Ronin wallet. There are two main ways of playing the game that involve seeking out two different assets. One is SLP, or Smooth Love Potion. You earn SLP through playing adventure games or arena matches and by completing daily quests. SLP is the resource needed to breed Axies, and there is an unlimited supply. 

The other resource is AXS tokens. These are a finite resource; there are only 270,000,000 in the game. AXS is an Ethereum token. Players who hold AXS tokens have governance rights in the game, meaning that they can make decisions about its future. If this progression continues, they may also be able to buy out Sky Mavis and run a fully decentralized economy in game. Players can also purchase virtual plots of land from the game’s world, called Lunacia. You can sell your Axies for AXS tokens or find these tokens within the game. These can then be transferred into fiat currency, such as GBP. 

In my next blog let's talk about Axies.