What is cryptocurrency Axie Infinity (AXS) and how does it work?

What is Axie Infinity (AXS)?

Axie Infinity is a blockchain game inspired by the successful Pokémon games series, in which players can earn tokens through various aspects of gameplay.

Since 2017, online games built around non-fungible tokens have been growing in popularity but their meteoric rise is only now underway. As with similar games, such as CryptoKitties (the game that launched the NFT gaming craze), Axie Infinity invites players to collect, breed, battle and trade digital creatures called Axies. Each Axie is a unique NFT that can be bred to produce more Axies or traded through an in-game P2P Axie marketplace.

In addition to raising and trading Axies, players can also earn income in the form of two ERC-20 tokens, Axie Infinity Shards (AXS) and Smooth Love Potions (SLP). As the principal Axie Infinity coin, AXS is the game’s central governance mechanism, which players can use to influence the platform’s development.

SLP, on the other hand, is earned by playing Axie Infinity and can be used to breed new Axies, which can then be traded in-game for AXS. Investors who don’t want to play Axie Infinity can still buy and sell both tokens on decentralized crypto exchanges.

Beyond these core functions, the developers of Axie Infinity have opened up new avenues of gameplay, such as opening up aspects of the Axie universe to community developers. In doing so, the hope is that players will form communities that not only contribute to the in-game universe through contributions that earn them tokens but also have a say in how the Axie Infinity game develops further.

How Does Axie Infinity Work?

Axie Infinity is an open-ended flexible gaming universe in which players can battle their Axies in real time but can also trade them and other tokenized in-game resources, such as plots of land. The platform provides a spectrum of features that players can access to diversify gameplay and to find new ways to contribute to the Axie Infinity universe. The core functions are collecting, trading, and battling Axies and these are supplemented by building up land-based kingdoms and contributing to the in-game ecosystem.

• Battling gameplay: Each Axie has a slew of characteristics that influence both its battle mechanics and how desirable it is to other players – i.e. whether it will fetch a good price on P2P marketplaces. Some of the characteristics are common to all Axies in the game, while others are specific to special classes of Axie. All Axies belong to classes (Aquatic, Beast, Bird, Bug, Plant, or Reptile) but there are also three secret classes (Dawn, Dusk, and Mech). Each class has its own pros and cons that make them more or less effective against other classes. Players who are new to Axie Infinity will need to buy a minimum of three Axies to begin playing, which can be a barrier to entry of sorts, since the cheapest Axies available at time of writing cost upwards of $300.
• Collecting and trading Axies: Since each new Axie has a unique set of stats and abilities, this can make them valuable collectors’ items to be bought and sold on the Axie marketplace The rarest and most lucrative Axies are known as Mystics and were created and sold in the original batch of 4,088 Axies, known as Origins. Mystics have special body parts that may confer them certain benefits in game but are primarily prized for their rarity. Some Mystics with multiple mystic body parts have sold for 200 to 300 ETH, while the last remaining quad mystic is currently listed at 5,000 ETH.
• Breeding new Axies: In addition to being used by players to earn SLP through PVP combat or engaging in quests, Axies can also be bred to create new offspring. A complex system of genetic traits dictates what attributes a newly bred Axie will have. An online calculator and an in-game Axie mating hub are available to help players work out their chances of successfully breeding Axies with rare or powerful traits. The number of times an Axie can breed is limited to seven as a form of population control. Each successive breeding costs the player an increasing number of tokens – so that the first time an Axie breeds will be many times less expensive than the final time.
• Land in the Axie Infinity universe: The Axie Infinity in-game world, called Lunacia, consists of a set quantity of land plots – at the time of writing, the maximum number of plots was 90,601. Just like the Axies that populate the world, these plots are themselves NFTs that can be traded between players. The plots, which act as bases for a player’s Axies, can also be built up over time using in-game resources and players have a chance of finding AXS coins on their land. Seven categories of land plot center around a central area known as Lunas Landing that the developers plan to turn into a virtual world packed with user-generated content.

Who Are the Founders of Axie Infinity? (History of Axie Infinity)

Axie Infinity was launched in 2018 by Vietnamese gaming studio Sky Mavis and was co-founded by Trung Thanh Nguyen and Aleksander Larsen. The 40-person team working on Axie Infinity full time is led by Trung, who is the current CEO of the platform and who had a career in software engineering prior to co-founding Axie Infinity. Larsen, the game’s other co-founder and current COO is a former competitive gamer, having represented the Norwegian national team in Warcraft 3 and DotA, as well as an experienced business developer.

Since it was first launched, Axie Infinity has undergone a number of important updates that have added ever greater levels of functionality. Still to come in 2022 is the launch of land gameplay, which is still in internal testing, while AXS staking is also on the horizon.

What Makes Axie Infinity Unique?

A key feature of Axie Infinity is that the game developers are committed to building a community of players who will contribute to the in-game universe both by participating in its governance and by providing player-generated content. This participation is gradually being built into the game through the play-to-earn function that centers around the AXS token. Part of this decentralized structure will be a Community Treasury that will collect revenue generated by Axie Infinity, as well as a portion of players’ rewards from staking. Once game governance has become sufficiently decentralized, players will have a say in how Community Treasury revenue is spent.

Certain in-game mechanics also set Axie Infinity apart from other similar blockchain games. One of these is the in-built population control that means each Axie can only be bred a total of seven times. The developers are aware that controlling the population and how quickly it grows is a fine balancing act between slow population growth that pushes prices out of most people’s price range or fast population growth that leads to unhealthy inflation.

Beyond a controlled population of NFTs, Axies themselves possess attributes that lend them endless variety. This generates additional demand among players, particularly when it comes to the rarest Axie types, which are already becoming coveted collectors’ items.

A new feature of the game that the Sky Mavis team has announced with gusto is the fact that the AXS token will soon become a stakeable asset. Players of the game will be able to accrue regular rewards by staking their tokens but they will also be expected to continue playing and taking part in game governance to do so.

What Gives Axie Infinity Value?

Axie Infinity tokens (AXS) and Smooth Love Potion (SLP) are both used in-game in the Axie universe to breed and trade Axies, which can in turn be used to generate more of these tokens through trade and gameplay.

Moreover, the finite supply of AXS makes it a scarce asset and so potentially a good store of value in the long term as the token won’t be depreciated by uncapped inflation.

How Many Axie Infinity Shards (AXS) Are There in Circulation?

Of the total supply of 270 million AXS, there are only currently in circulation.

It is thought that all 270 million AXS tokens will be in circulation by 2026.

Other Technical Data

Axie Infinity operates primarily on the Ethereum blockchain and both AXS and SLP are ERC-20 tokens tradeable on the Ethereum network. However, due to concerns about congestion on the Ethereum network and fluctuating gas fees, the Sky Mavis team has launched and continues to develop Ronin, a bespoke Ethereum-based sidechain. Ronin is designed not only to improve the player experience but also to enable Sky Mavis greater control over the future development and scaling of Axie Infinity itself.

Although Ronin will rely primarily on a dedicated platform-hosted wallet, the developers have stated that they are committed to allowing players to withdraw their tokens back to the Ethereum Mainnet.

How is the Axie Infinity Network Secured? 

Both of the primary Axie Infinity tokens (AXS and SLP) are ERC-20 tokens launched on the Ethereum network and are secured by Ethereum’s Proof of Work consensus mechanism. To avoid the congestion that results from the POW model, Sky Mavis, the development studio behind Axie Infinity has developed its own bespoke sidechain on Ethereum, known as Ronin.

To help secure Ronin, the developers have drafted in what they call an all-star cast of gamers and other partners from the crypto and NFT space to act as validators for the network. The Ronin sidechain also comes with a dedicated wallet to which player-owned tokens can be migrated.

How to Use Axie Infinity

Axie Infinity Shard (AXS) tokens are currently used primarily for breeding new Axies but Sky Mavis plan on adding new functionality to the token in the near future:

Payment: Players of Axie Infinity can use AXS to play the game and complete payments. It is possible that players will have to hold some AXS in order to take part in future NFT sales or transactions.

Governance: Although governance token functions are currently still under development, the developers are committed to transitioning to decentralized governance of the game’s ecosystem. Players will be able to stake part of their AXS holdings in return for voting rights. Governance token features are expected to be rolled out in 2021, with the decentralized organization holding a majority vote by 2023.

Staking: In return for staking their AXS holdings and participating in governance of the Axie Infinity ecosystem, players will be able to reap regular rewards. Staking is expected to launch later in H2 of 2021.

How to Choose an Axie Infinity Wallet

The Ronin Wallet developed by Sky Mavis enables users to play Axie Infinity and other decentralized applications running on the Ronin sidechain. It is available as a browser extension and will soon be available as a mobile app too, but it is currently only compatible with one hardware wallet: Trezor.

For those who simply want to invest in Axie Infinity tokens, there are many wallets to choose from as storage options. Users will be able to decide on their own security and functionality needs since AXS tokens can be stored in any ERC-20 compatible wallet.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of AXS for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of AXS or more novice users.

Online wallets or web wallets are also free and easy to use and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your AXS, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your AXS tokens without hassle. Storing your AXS with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling AXS, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Axie Infinity Proof of Stake

Although the Proof of Stake function of AXS has yet to be launched, the game’s developers have stated that it will be rolled out in 2021. Once fully operational, AXS token holders will be able to stake part of their holdings in return for freshly issued AXS and other in-game rewards. AXS token holders will also eventually have a say in how the platform’s Community Treasury revenue is spent or redistributed. Stakers will, however, also be incentivized to continue playing the game and participate in the platform’s decentralized governance and ownership. Indeed, rewards may be contingent on users continuing to actively participate in the Axie Infinity ecosystem.

Driving the Crypto Gaming Surge

Axie Infinity is certainly not the only blockchain, NFT-based game out there but with a market cap that has skyrocketed northwards of $2.5 billion and its evident popularity with a growing community of players, it is safe to say that Axie Infinity is fast becoming a leader in the emerging play-to-earn sector.

Part of this success is surely down to the Axie Infinity game boasting unique features that attract players looking to earn while they play but it also comes on the back of a more general surge in the crypto gaming landscape.

If it continues to add features such as staking that maintain or add to its player base or attract new users, there is every chance that Axie Infinity will continue to solidify its place as a trend-setter in this interesting corner of the crypto universe.

Axie Infinity FAQ

What are the stats associated with Axies?

There are four stats that determine each Axie’s performance in battle and they are dependent on the Axie’s class and body parts. Firstly, HP dictates how much damage an Axie can sustain before being defeated. An Axie’s morale affects its chances of inflicting a critical strike. When an Axie plays multiple cards at once, their skill level adds extra damage. Finally, the speed of battling Axies determines their turn order.

How does Axie breeding work?

Players can select an Axie in their inventory, click “Breed”, and choose which Axie to pair it with. SLP is required to breed Axies on top of the fixed 4 AXS cost. SLP cost starts from 150 SLP for the first time an Axie is bred and goes up to 3,150 SLP for the seventh time. Axies have three genes: dominant, recessive, and minor recessive, with each being decreasingly likely to be passed on to offspring. The new Axie will start life as an egg and take five days to reach maturity.

How to Buy Axie Infinity

Buying AXS is as easy as visiting the Kriptomat how to buy Axie Infinity page and choosing a method of payment. Kriptomat enables its users to buy AXS with Mastercard or Visa, SEPA transfer, Skrill, Neteller, or Sofort.

How to Sell Axie Infinity

If you already own AXS and hold it on the Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Axie Infinity Price

AXS price is influenced by a lot of traditional factors such as project news and development details, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. 

The price of AXS is also influenced by the popularity of the Axie Infinity game and the potential future demand driven by the new functionalities to be added to the token.

The current AXS price is EUR.

The 24-hour trading volume of AXS is EUR. AXS is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of and a max supply of .

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