Axie Infinity is a blockchain-based game that has taken the world by storm. It’s a game that allows players to collect, breed, and battle creatures called Axies, and it’s become one of the most popular games in the world. However, the question that many people have is, how does Axie Infinity make money?
In this blog post, we’ll explore the different ways that Axie Infinity generates revenue and how it’s become one of the most profitable blockchain games in the world.
What is Axie Infinity?
Axie Infinity is a blockchain-based game that was created by Sky Mavis, a Vietnamese game development company. It’s a game that allows players to collect, breed, and battle creatures called Axies. Axies are digital creatures that are stored on the blockchain, which means that they are decentralized and cannot be copied or stolen.
Axie Infinity has become incredibly popular over the last year, with millions of players from all over the world. The game has a complex gameplay system that allows players to breed and trade Axies, battle in various game modes, and earn cryptocurrency called Smooth Love Potion (SLP). The game has become so popular that it has spawned its own ecosystem, with Axie Infinity players creating their own marketplaces, communities, and even scholarship programs.
How Axie Infinity Works
Axie Infinity is a blockchain-based game that allows players to collect and battle digital creatures called Axies. The game is built on the Ethereum blockchain and uses non-fungible tokens (NFTs) to represent the Axies.
Players start by buying or breeding Axies, each with unique traits and abilities. Axies can be bred by combining two existing Axies, and the offspring will inherit traits from both parents. The breeding process requires players to pay a breeding fee in cryptocurrency, which is used to fund the development of the game and support the Axie Infinity community.
Once players have their Axies, they can use them to battle against other players in turn-based battles. The battles take place on a 3×3 grid, and players take turns attacking and defending using their Axies’ abilities. The goal is to defeat all of the opponent’s Axies before they defeat yours.
Players earn rewards for winning battles, including Smooth Love Potion (SLP), a cryptocurrency that can be used to breed new Axies. Players can also complete daily quests to earn SLP, and they can participate in weekly tournaments to win even more rewards.
Axie Infinity has its own marketplace, where players can buy, sell, and trade Axies for cryptocurrency. The marketplace is the primary way that Axie Infinity generates revenue, with the company taking a fee on all transactions.
In addition to battles and trading, Axie Infinity also has a virtual world called Lunacia. Players can use their Axies to explore Lunacia, build structures, and interact with other players. Lunacia is built on the Ethereum blockchain, and players can buy and sell virtual land using cryptocurrency.
Axie Infinity also has a governance token called Axie Infinity Shard (AXS). AXS gives players a say in the direction of the game and allows them to earn rewards for participating in the ecosystem. AXS can be earned by playing the game, but it can also be bought and sold on cryptocurrency exchanges.
Overall, Axie Infinity is a complex ecosystem that allows players to collect, breed, battle, trade, and explore using digital creatures called Axies. The game is built on the Ethereum blockchain, and it uses cryptocurrency and NFTs to enable players to earn rewards and participate in the ecosystem.
Also read // How does Yotta Make Money?
History of Axie Infinity
Axie Infinity was created by Vietnamese game development company Sky Mavis. The game was first introduced in 2018 as a collectible game that allowed players to collect and trade digital creatures called Axies. However, the game did not gain widespread popularity until 2020 when the team introduced the ability to breed Axies and battle them against other players.
The introduction of breeding and battling added a new layer of gameplay to Axie Infinity, making it more competitive and strategic. Players could breed Axies with different traits and abilities to create unique combinations that were powerful in battle.
Axie Infinity quickly gained a following, with players from all over the world joining the game. The game’s popularity was fueled by the fact that players could earn cryptocurrency by playing the game. This was made possible through the introduction of Smooth Love Potion (SLP), a cryptocurrency that could be earned by winning battles, completing quests, and breeding Axies.
In July 2020, Axie Infinity launched its own marketplace, allowing players to buy, sell, and trade Axies for cryptocurrency. The marketplace quickly became the primary way that Axie Infinity generated revenue, with the company taking a 4.25% fee on all transactions.
In November 2020, Axie Infinity launched its governance token, Axie Infinity Shard (AXS). The token gave players a say in the direction of the game and allowed them to earn rewards for participating in the ecosystem. AXS could be earned by playing the game, but it could also be bought and sold on cryptocurrency exchanges.
Related // How does Flybuys Make Money
In early 2021, Axie Infinity became even more popular as the price of cryptocurrency skyrocketed. The game attracted more players who were looking for a way to earn cryptocurrency, and the value of SLP and AXS increased dramatically. This led to the creation of Axie Infinity scholarship programs, where players could earn cryptocurrency by playing the game on behalf of others who could not afford to buy Axies.
Axie Infinity continues to grow and evolve, with the team introducing new features and gameplay mechanics. The game has become a major player in the blockchain gaming industry, and it’s likely that we’ll see even more growth and development in the years to come.
How does Axie Infinity Make Money?
Axie Infinity has become one of the most profitable blockchain games in the world, generating millions of dollars in revenue every month. There are several ways that Axie Infinity generates revenue, and we’ll explore each of them in detail.
Axie Infinity Marketplace
The Axie Infinity Marketplace is the primary way that Axie Infinity generates revenue. The marketplace allows players to buy, sell, and trade Axies for cryptocurrency. Axies can be sold for a variety of cryptocurrencies, including Ethereum (ETH), Smooth Love Potion (SLP), and Axie Infinity Shard (AXS).
Axie Infinity takes a 4.25% fee on all Axie transactions that occur on the marketplace. This means that for every Axie that is sold for ETH, SLP, or AXS, Axie Infinity takes a 4.25% cut. This fee is used to fund the development of the game, pay for server costs, and support the Axie Infinity community.
Smooth Love Potion (SLP) Token
Smooth Love Potion (SLP) is a cryptocurrency that is unique to Axie Infinity. It’s used as an in-game currency that can be earned by playing the game. Players can earn SLP by winning battles, completing quests, and breeding Axies.
SLP can also be bought and sold on cryptocurrency exchanges. This means that players can earn real money by playing the game and selling the SLP they earn. However, Axie Infinity takes a 4.25% fee on all SLP transactions that occur on the marketplace.
Axie Infinity Shard (AXS) Token
Axie Infinity Shard (AXS) is another cryptocurrency that is unique to Axie Infinity. It’s used to govern the game’s ecosystem and give players a say in the direction of the game. AXS can be earned by playing the game, but it can also be bought and sold on cryptocurrency exchanges.
Axie Infinity takes a 4.25% fee on all AXS transactions that occur on the marketplace. This fee is used to fund the development of the game, pay for server costs, and support the Axie Infinity community.
Breeding Fees
Breeding Axies is one of the core features of Axie Infinity. Players can breed two Axies together to create a new Axie that has a mix of its parents’ traits. However, breeding Axies costs cryptocurrency.
When players breed Axies, they must pay a breeding fee in SLP. The breeding fee is set by Axie Infinity and varies depending on the current market conditions. Axie Infinity takes a 4.25% fee on all breeding fees that are paid on the marketplace.
Land Sales
Axie Infinity also sells virtual land to players. The land is called “Lunacia” and it’s a virtual world that players can explore and build on. Players can use their virtual land to build houses, stores, and other structures.
Axie Infinity sells the virtual land for cryptocurrency and takes a fee on all land sales. The fee is used to fund the development of the game, pay for server costs, and support the Axie Infinity community.
Sponsored Tournaments and Partnerships
Axie Infinity has partnered with several companies to host sponsored tournaments and events. These events allow players to win prizes and earn cryptocurrency.
Axie Infinity also partners with other blockchain-based games and projects. These partnerships help to expand the Axie Infinity ecosystem and generate more revenue for the company.
Valuation Revenue & Funding
Axie Infinity has received funding from several investors since its inception. In 2018, the company raised a seed round of $1.5 million from several investors, including Animoca Brands, Hashed, and Pangea Blockchain Fund. In 2019, the company raised a $1.7 million investment led by Hashed and ConsenSys Ventures.
In 2021, Axie Infinity experienced explosive growth as the price of cryptocurrency soared. The game attracted a massive influx of players, and the value of its native cryptocurrency, AXS, increased dramatically. In July 2021, the company raised a $7.5 million funding round led by Delphi Digital, a cryptocurrency research and investment firm. The funding was used to support the development of the game and the Axie Infinity ecosystem.
Axie Infinity generates revenue primarily through its marketplace. The company takes a 4.25% fee on all transactions that take place on the marketplace, including the buying, selling, and trading of Axies. In addition, the company generates revenue through breeding fees, which players must pay to breed new Axies.
The value of Axie Infinity has increased significantly in 2021, reflecting the game’s popularity and growth. In August 2021, Axie Infinity became the highest-grossing NFT game, with monthly sales of over $1 billion. The value of AXS, the game’s governance token, has also increased dramatically, with the token reaching an all-time high of $135 in November 2021. As of February 2023, Axie Infinity has a market capitalization of over $6 billion.
In conclusion, Axie Infinity has received significant funding from investors and generates revenue primarily through its marketplace and breeding fees. The game’s popularity and growth have led to a significant increase in its valuation, making it one of the most valuable NFT games on the market.
You may also like // Five Below Business Model
Conclusion
Axie Infinity has become one of the most profitable blockchain games in the world. The game generates revenue through the Axie Infinity Marketplace, Smooth Love Potion (SLP) Token, Axie Infinity Shard (AXS) Token, breeding fees, land sales, and sponsored tournaments and partnerships.
Axie Infinity has created a unique ecosystem that allows players to earn cryptocurrency by playing the game. This has helped to attract millions of players from all over the world and has made Axie Infinity one of the most popular blockchain games in the world.
As Axie Infinity continues to grow and expand, it’s likely that we’ll see even more ways that the company generates revenue. With a passionate community of players and developers, Axie Infinity is poised to continue to be a major player in the blockchain gaming industry for years to come.