In Axie Infinity’s classic model, players earned SLP by winning matches in PvP and PvE modes, with bonus rewards for completing daily tasks. SLP was then burned (spent) during the breeding process to create new Axies, making it a closed-loop utility token. This supply/demand dynamic initially supported a robust in-game economy and created a financial incentive to play regularly.
SLP became globally significant when play-to-earn took off in 2021, particularly in countries like the Philippines, Venezuela, and Indonesia. Many players, unable to access traditional jobs during COVID-19 lockdowns, turned to Axie as a legitimate income source. SLP was regularly converted into fiat, creating a unique financial phenomenon where a gaming token became a livelihood for millions.
SLP became globally significant when play-to-earn took off in 2021, particularly in countries like the Philippines, Venezuela, and Indonesia. Many players, unable to access traditional jobs during COVID-19 lockdowns, turned to Axie as a legitimate income source. SLP was regularly converted into fiat, creating a unique financial phenomenon where a gaming token became a livelihood for millions.
The success of Axie led to explosive player growth—but with it came uncontrolled SLP inflation. The game was rewarding more SLP than the economy could absorb, and breeding demand slowed as Axie prices dropped. With more tokens being earned than burned, SLP’s price fell dramatically, eroding player earnings and shaking confidence in the model. This marked one of the first major lessons in unsustainable token emissions in Web3 gaming.
In response to the downturn, Sky Mavis (Axie’s developer) made several adjustments: removing SLP rewards from casual modes, adding new burn sinks (like in-game cosmetics), and exploring more dynamic emission models. These changes aimed to bring supply and demand closer into balance, while reducing the game’s reliance on SLP as the core reward mechanism. The team also began shifting toward play-and-own and access-first models for long-term sustainability.
SLP is still part of Axie Infinity, but it's no longer the star. Axie’s economy has diversified, with increased focus on AXS governance, NFT-based progression, and longer-term player ownership models. SLP now serves as a flexible, adjustable token within a broader ecosystem of features. It stands as a key example in crypto gaming—a project that scaled too fast, rebalanced, and continues to evolve in pursuit of sustainability.
SLP is still part of Axie Infinity, but it's no longer the star. Axie’s economy has diversified, with increased focus on AXS governance, NFT-based progression, and longer-term player ownership models. SLP now serves as a flexible, adjustable token within a broader ecosystem of features. It stands as a key example in crypto gaming—a project that scaled too fast, rebalanced, and continues to evolve in pursuit of sustainability.
