Axie Infinity (AXS): The Token That Kicked Off Play-to-Earn
Axie Infinity wasn’t the first blockchain game — but it was the one that put play-to-earn on the global map. At its peak, it was more than just a game. It became a financial lifeline for thousands, especially in developing nations, and turned gaming into an income source.
While the hype has cooled, the infrastructure, community, and technology behind Axie Infinity continue evolving — and AXS remains central to it all.
What Is Axie Infinity?
Axie Infinity is a blockchain-based battle game where players collect, breed, and battle creatures called Axies. Think of it like Pokémon with NFTs — every Axie is unique, tradeable, and usable in combat.
The game was developed by Sky Mavis, a Vietnamese studio that launched Axie in 2018. It lives on the Ronin sidechain, which Sky Mavis built to bypass Ethereum’s high fees and latency issues.
The game loop revolves around earning two tokens:
- AXS (Axie Infinity Shards) – the governance and staking token
- SLP (Smooth Love Potion) – the in-game utility and rewards token
Players earn SLP through gameplay and use AXS for long-term value accrual, governance, and ecosystem control.
How AXS Works
AXS is more than just a reward token. It has multiple functions across the Axie ecosystem:
Governance
holders can vote on development proposals and treasury allocations
Staking
users earn passive yield by locking up AXS
Breeding Axies
AXS is required, alongside SLP, to create new Axies
Treasury ownership
AXS stakers benefit from ecosystem growth
The token supply is capped at 270 million AXS, and emissions are gradually declining as the ecosystem matures.
Why Axie Infinity Went Parabolic
Axie exploded in mid-2021 for a few key reasons:
- Play-to-earn was a brand new concept, and Axie nailed the timing
- Covid lockdowns boosted demand for online income sources
- The Philippines and Venezuela adopted Axie en masse, forming scholarship guilds
- NFTs were trending, and Axie offered real ownership and resale value
- Ronin solved Ethereum’s gas problems, allowing for smooth gameplay
At one point, Axie was generating more protocol revenue than any other dApp, including Ethereum itself.
The Ronin Ecosystem
AXS doesn’t exist in isolation. It powers a growing gaming and metaverse layer on Ronin.
Here’s what’s part of the Axie and Ronin stack:
Axie Classic (V2)
the original battle system
Axie Origins (V3)
the updated card-based game with free-to-play options
Axie Homeland
a land-based builder game in early access
Mavis Hub
the game launcher and onboarding layer for new games on Ronin
Other games like Pixels and Apeiron, expanding Ronin beyond Axies
So while Axie’s token price has dropped since the peak, the ecosystem hasn’t stopped building.
Risks and Limitations
Despite being a pioneer, Axie faces major challenges:
- It’s no longer top of mind in Web3 gaming, with newer models gaining traction
- The in-game economy broke in 2021, as SLP inflation outpaced demand
- User retention is low without strong earnings
- AXS price is still tied to speculation, not gameplay success
- Ronin remains centralized, though gradual decentralization is planned
Still, with a working product, strong IP, and a functioning chain, Axie Infinity remains one of the most complete Web3 games live today.
Summary Checklist
- Axie Infinity is a Web3 battle game where players earn tokens through gameplay
- AXS is the governance and staking token of the Axie ecosystem
- AXS also supports breeding, treasury access, and protocol governance
- The Ronin chain enables fast, cheap gaming on-chain
- Axie peaked in 2021 but continues expanding its game ecosystem
- Risks include economic sustainability and falling user engagemen
What’s the difference between AXS and SLP?
AXS is the governance and staking token with fixed supply. SLP is an inflationary in-game reward token used for breeding and earned through gameplay.
Is Axie still alive?
Yes. While the hype died down, the game is still live, with multiple versions running, new features being released, and a growing ecosystem on Ronin.