Axie Infinity

Axie Infinity is a blockchain game built around collectible creatures called Axies, and AXS is its governance token. Developed by Sky Mavis, the game became the most prominent example of the play-to-earn model during 2021, when large numbers of players in countries including the Philippines and Venezuela earned income from playing.

How Axie Infinity works

Players acquire Axies as NFTs and use them in battles and breeding. The game economy historically had two tokens: Smooth Love Potion, earned through gameplay and used for breeding, and AXS, which serves as the governance token and staking asset. AXS holders can stake their tokens to earn additional AXS and vote on proposals affecting the direction of the game, which is a departure from traditional games where all decisions rest with the developer.

AXS has a maximum supply of 270 million tokens, all issued as total supply, with roughly 174 million in circulation. The game runs primarily on Ronin, an Ethereum sidechain built by Sky Mavis specifically to handle the game's transaction volume at low cost, and AXS also exists on Ethereum and other networks.

Role in the ecosystem

Axie Infinity's rise and subsequent decline is one of the most studied episodes in blockchain gaming. The play-to-earn economy proved difficult to sustain because rewards were funded largely by new player entry rather than by consumption within the game. In March 2022 the Ronin bridge suffered a major exploit, one of the largest in crypto history, which Sky Mavis subsequently reimbursed. The project has since reworked its economy and continues to develop the game and the Ronin network.