Axie Infinity stands as a pioneering force in the world of decentralized gaming, operating as a major play-to-earn (P2E) title on the Ethereum blockchain. Developed by the Vietnamese studio Sky Mavis, the game officially launched in March 2018.
Inspired by classics like Pokémon and Tamagotchi, Axie Infinity allows players to collect, breed, and battle digital creatures known as Axies. These creatures, along with other in-game assets like land and special abilities, are represented as non-fungible tokens (NFTs) on the blockchain. This design enables true digital ownership, allowing players to freely trade their assets with others.
Each Axie is a unique NFT built on the Ethereum ERC-721 standard. Players engage in real-time battles using their Axies and can earn two primary types of tokens: Smooth Love Potion (SLP) and Axie Infinity Shards (AXS). SLP is primarily used for breeding new Axies and can be traded on various crypto exchanges. AXS, on the other hand, serves as the governance token for the entire ecosystem.
Understanding the AXS Token
AXS is central to the Axie Infinity universe. It functions both as a utility token and a governance mechanism. Holders can use AXS to participate in votes on game development proposals via a decentralized autonomous organization (DAO). Additionally, AXS can be staked to earn rewards and is used for purchasing in-game assets.
Staking AXS tokens allows users to earn newly minted AXS as rewards while also gaining voting rights in governance decisions. Nearly 30 million AXS are currently staked, with an estimated annual percentage rate (APR) of around 61%. For those looking for a streamlined staking experience, many opt for established platforms that offer secure and efficient services. 👉 Explore reliable staking options here
Players can also battle non-player characters called Chimeras to earn additional tokens and rewards, which help in strengthening and upgrading their Axies.
The Axie Infinity Marketplace
The in-game marketplace allows users to buy and sell Axies and other digital assets using either AXS or Ethereum (ETH). While both are accepted, ETH is more commonly used as the primary medium of exchange, with most assets listed with ETH-based pricing.
In 2020, the development team announced the creation of Ronin, an Ethereum sidechain built specifically for Axie Infinity. This move significantly reduced transaction costs and improved scalability, contributing to the game’s widespread adoption.
Despite the emergence of numerous NFT-based play-to-earn games, Axie Infinity remains one of the most successful and recognized titles in the space. According to official reports, the game boasts over 2.8 million daily active players. More than $3.5 billion in assets have been traded on its marketplace, with nearly $800 million in assets locked in its smart contracts. For many, Axie Infinity has become a viable source of supplemental income.
The Ronin Bridge Incident and Recovery
On March 29, 2022, the Ronin Network—an Ethereum sidechain developed by Sky Mavis—suffered a major security breach. The attacker exploited a vulnerability in the bridge connecting Ronin to the Ethereum mainnet, making off with 173,600 ETH and 25.5 million USDC, totaling over $625 million at the time. The hack was later attributed to the Lazarus Group, a notorious cybercrime organization.
Only $30 million of the stolen funds have been recovered so far. However, within three months of the incident, the Ronin Network was fully restored. All users affected by the hack were reimbursed their lost assets. The network underwent thorough audits by cybersecurity firms CertiK and Verichains, and new security protocols were implemented to prevent future attacks.
In June 2022, Axie Infinity allocated $216.5 million to compensate victims of the hack. Sky Mavis also raised an additional $150 million from investors, including Binance, to cover these costs.
Tokenomics of AXS
The AXS token has a maximum supply of 270 million, all of which were minted at launch. The circulating supply is currently around 83 million tokens. The allocation of AXS is broken down as follows:
- 20% for player rewards (play-to-earn incentives)
- 29% for staking rewards
- 8% allocated to the ecosystem fund
- 21% to Sky Mavis
- 7% to advisors
- 11% sold in public sales
- 4% allocated to private sales
The token release schedule spans 65 months, starting from November 4, 2020. Detailed information on unlocking and distribution can be found in the project’s whitepaper.
Founding Team and Development
Axie Infinity was developed by Sky Mavis, a Vietnamese game studio co-founded by Trung Nguyen, Tu Doan, Aleksander Larsen, Jeffrey Zarlin, and Andy Ho. The project was inspired by the success of CryptoKitties and aimed to introduce blockchain technology to a broader audience through an engaging gameplay experience.
In October 2021, Axie Infinity raised $152 million in a Series B funding round led by Andreessen Horowitz, achieving a valuation of $3 billion. By that time, the game had already surpassed 2 million daily active users and generated nearly $2.3 billion in total sales.
The game maintains a strong social media presence, with over 400,000 followers on Facebook, nearly 1 million on Twitter, and more than 1 million users across various regional Discord servers.
Frequently Asked Questions
What is Axie Infinity?
Axie Infinity is a blockchain-based game where players collect, breed, and battle fantasy creatures called Axies. It incorporates play-to-earn mechanics, allowing users to earn cryptocurrency through gameplay.
How do I earn AXS tokens?
You can earn AXS by winning battles, participating in special events, or staking existing tokens. AXS can also be purchased on major cryptocurrency exchanges.
What is the Ronin Network?
Ronin is a custom Ethereum sidechain built for Axie Infinity. It reduces gas fees and improves transaction speed, creating a smoother gaming experience.
Is Axie Infinity safe to play after the Ronin hack?
Yes. The network has undergone multiple security audits and implemented enhanced safety measures. All lost user funds were reimbursed.
Can I play Axie Infinity without investing money?
While it's possible to receive starter Axies from scholarships or friends, most players need to initially purchase at least three Axies to begin earning.
What is the future of Axie Infinity?
The team continues to develop new gameplay features, expand the ecosystem, and strengthen governance through the AXS token. Community involvement remains a key priority.