Axie Infinity is a blockchain-based video game in which players collect, trade, battle and breed virtual creatures called Axies. The game has two native digital currencies. The first is called Axie Infinity Shards, but you'll often see it referred to by its ticker symbol, AXS, on exchanges like OKEx. This Ethereum-based token creates gameplay incentives for players and is used within the game's governance structure. Meanwhile, the second token, known as Small Love Potion, is used when breeding Axies.
The wildly popular Pokémon franchise inspired many of Axie Infinity's gameplay dynamics. Each Axie is represented by a nonfungible token and has its own traits, which determine its abilities in battle. Certain traits are rarer than others and may be passed from generation to generation through breeding. Axie trainers can trade their virtual creatures in the game's in-built marketplace. Other in-game items, such as land, are also represented via NFTs and are tradeable within the game's marketplace.
Of this number, 30% are Mystic Axies. Axie Infinity's documentation states that these original creatures will possess special powers in future game modes.
Although Axie Infinity was originally intended to operate on the Ethereum base layer, it migrated to a specially built sidechain called Ronin in 2021. This enabled more of its gameplay dynamics to occur on-chain, without Ethereum's inconsistent transaction fees impacting the overall user experience.
AXS is an ERC-20 token that enables holders to participate in the game's governance. Players also receive rewards for staking AXS and can receive AXS for completing various objectives. Its utility in the Axie Infinity ecosystem should create demand for the token, putting upward pressure on the AXS price.
AXS has a maximum total supply of 270 million. The initial distribution saw 20% allocated to the game's play-to-earn functions, 29% to staking rewards, 21% to the core team, 7% to the project's advisors and 8% to an ecosystem fund. An additional 15% of the total supply was sold to both private and public investors. These tokens will enter circulation over a period of 65 months. As tokens are unlocked, selling pressure may increase, exerting downward pressure on the AXS price.
Axie Infinity was created by the Singapore-based software firm Sky Mavis. The company was founded in 2019 — after development on the game began — by Trung Nguyen, Aleksander Leonard Larsen and Jeffrey Zirlin. They now serve as its CEO, COO and growth lead, respectively. Joining these co-founders is a transparent team of developers, artists and marketing specialists.
The project also benefits from an impressive list of partners from both inside and outside the cryptocurrency industry. Along with Samsung and Unisoft, Axie Infinity has links to the decentralized finance sector thanks to deals with Maker, Kyber Network and Aave. Axie Infinity has also attracted funding from investors including CoinGecko, DeFi Alliance and Mark Cuban.