One of the biggest highlights of the year 2021 was the world of Blockchain Games, more specifically the game Axie Infinity (AXIE).
In the last 30 days the game has gained more than 98% in value, and in the last three months this game has shown a value growth of 1500%.
Top gaming companies by market cap:
As a result of all this movement, the game is currently valued at about 30 billion dollars, a value higher than that of large game companies in the traditional market, such as Ubisoft.
Despite all this relevance, the game is recent and is still releasing some of its features, so that very few investors understand its economic dynamics and the model that enshrined the game: the Play to Earn format.
What is Play to Earn?
To understand this concept, it is first important to know that blockchain games are applications of the most diverse formats, from RPG games to virtual worlds that allow users to interact with each other in a similar way to a social network.
Players, over time, accumulate items that are part of the game's economy and can make different combinations to evolve their characters.
As a result of these movements, players make these items increasingly rare and, as they are tokens, they can be exchanged in marketplaces or even in the game itself.
In this way, over time, players accumulate both items and game tokens, which can be exchanged for other cryptocurrencies in a format where they earn to play what is known as Play to Earn.
How does AXIE Work?
In the case of Axie Infinity, there are three important tokens: SLP, AXS and the Axies.
AXS is a governance token that can be used for in-game decision making and even staking, a feature added last week that led to the asset's great appreciation.
While SLP is currently a required token for reproduction (creation of new Axies). SLP is also the main source of “revenue” when discussing the earning potential of Axie Infinity.
It is important to note that AXS has a limited supply, while SLP is infinite and issued as players operate in the game.
Axies are NFTs, which represent game characters, which can be exchanged between players through marketplaces and have their value linked to their rarity.