What is the Reason for SLP Token’s Increase? This Development Raised The Price By 60%

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  • Axie Infinity’s bounty icon as a result of an update to the game economy to reduce in-game inflation In Smooth Love Potion (SLP) there has been an increase.

The price of SLP, the prize token of Axie Infinity, a popular play-to-win crypto game, surged 58 percent overnight, to as high as $0.03787 last week, up more than 300 percent.

In addition to the overnight gains of SLP, the price of AXS, the game’s governance token, has also increased by more than 33 percent compared to last week.

The value of both cryptocurrencies is drastically changing the in-game economy of Axie’s play-to-win game. “Season 20 (Season 20)” rose after the official announcement of the update.

So what is Axie Infinity, what role does SLP play, and how will the update change things?

Axie Infinityis a Pokémon/Tamagotchi inspired game where players collect, craft and battle monster NFTs for rewards.

Once players have formed an Axies team, they will be able to go through battles. ‘Smooth Love Potion’ (SLP) they can collect their tokens. SLP tokens can be used to unlock new in-game features, including the ability to spawn new Axies.

Axie Infinity’s Season 20 update

Axie’s new update focuses on making SLP tokens more scarce and reducing the daily SLP token supply by 56% by implementing changes that will rebalance the ecosystem. Players can no longer earn them by playing daily quests or in adventure mode.

Axie’s latest update focuses on reducing the daily SLP token supply by 56 percent. Players can no longer obtain SPLs by completing daily quests or playing in adventure mode.

The team had this to say about the earnings status of the Smooth Love Potion (SLP) tokens:

“In theory, the daily task was a great way to encourage people to play every day, but now it has become a collective emission mechanism for SLP. By removing the daily duty, we can reduce issuers by approximately 45 million SLPs per day.”

The developers described it as a “painful drug” that will be necessary for the future development of the game. If implemented, the supply of SLP tokens is expected to drop by as much as 56%, as the developers highlighted above:

The new measures to limit SLP are aimed at increasing token scarcity, a measure that developers consider absolutely necessary to prevent “total and permanent economic collapse.”

The probability of a collapse in the previous economy of the game was due to the excessively high inflation of the token, with approximately 4x more SLP being created (supplied) per day than burned (claimed) through breeding.

Sky Mavis hopes the new update will strategically rebalance the game’s economy, which has slumped in recent months, with the base price of Axie NFTs dropping from a few hundred dollars to just under $50.

Another big feature of Season 20 is the inclusion of new players. The team has created a $6 million prize fund and is now offering up to 117,676 AXS tokens for the top 300,000 players in the new season.

“Simply put, we prioritized growth and brought in millions. Without this approach, Axie would likely remain a small, niche game with a few thousand players.”

Over the past few days, while the overall crypto market has rebounded, the price of the Axie Infinity (AXS) token has also risen thanks to the current developments and market trend. The current price level of the cryptocurrency is about 30 percent higher than it was at the end of January.

Following the news of the SLP reduction, the SLP price surged around 60 percent before retracing to its current price. At the time of writing, the cryptocurrency is trading at $0.03706431, up 31%.

Another good news for SLP came from Binance yesterday: cryptocurrency exchange Binance has added SLP/BNB as a new trading pair; This means that traders can now trade BNB for SLP on the exchange.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.


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