What Is Axie Infinity Shards Token (AXS)?

The year 2021 marked the widespread adoption of play-to-earn (P2E) games with the introduction of blockchain-based gaming platforms such as Axie Infinity. Axie is a digital nation of Axies in which people from all over the world come together online to have fun, get their work done, and make friends they’ll keep for life, powered by the AXS token.

The Axie Infinity Shards Token (AXS) is used in the Axie Infinity Gaming Universe as the game’s governing currency. Players who have AXS tokens in their balance can have a say in the game’s development, the implementation of new features, and the allocation of the game’s funds.

What Are Axies?

Axies are dangerous creatures that can be collected and used in battle in the world of Axie Infinity. Axie has a player-owned economy, which means that players retain full ownership of their digital assets and have the ability to buy, sell, and trade them in the same manner as they would with physical collectibles and trading cards. 

Many of these activities feature player-on-player competitions wherein participants employ elaborate strategies and tactics to rise to the top of the rankings or win valuable rewards. In others, they have to complete quests, defeat bosses, and gain access to the game’s main storyline, and the AXS token is the currency that powers the transactions in this virtual world.

Read on if you’re curious about the token’s features and whether or not you should add it to your investment portfolio and thus join the Axie Infinity Gaming Universe.

How Does the Axie Infinity Shards Token Work?

The Ronin Ethereum Sidechain, which helps run the game on the Ethereum (ETH) blockchain and reduces transaction costs and delays, is integral to the game’s functionality.

Battles against AI-controlled Axie teams or real-time opponents over the Internet are the main draw of Axie Infinity. While playing, players can earn tokens that can be spent in the NFT marketplace on items like the Axies they create, virtual real estate, and in-game items.

The in-game currency is split between two distinct digital currencies:

• The Axie Infinity Shards (AXS) – an ERC-20 utility token used for in-game purchases. By staking, AXS also serves as a governance token that gives its owners a voice in the direction the game takes.
• The Small Love Potion (SLP) – the in-game currency players earn for staying active. Earning SLP requires users to either complete tasks or defeat an opponent’s Axie. A player’s potential to earn SLP increases with their playing time.

What Is Axie Infinity Shards Token (AXS) Used For?

The economic design of Axie, which is based on blockchain technology, enables the game to have more complex player-owned economies and rewards players who are able to achieve higher levels of skill than in traditional games. This is one of the key differences between Axie and traditional games. 

With an open economy and the demand from other players, the Play-and-Earn functionality allows players to have fun while working towards lofty goals and potentially earning resources that will have a real monetary value.

The Play and Earn allotment serves as a form of advertising funding for the Axie ecosystem as a whole. The percentage of available playtime for earning rewards could be raised once certain game modes and products are ready for promotion. Over the course of time, the governance team may choose to make a decision regarding these allocations too.

For those who are invested in the Axis network for the long haul and are willing to keep their AXS tokens locked up, there is a staking mechanism to reward them. Namely, when you lock up your tokens using the staking dashboard, you will be eligible to receive AXS rewards if you have staked your AXS. 

In addition, it’s good to know that to have a voice in the future of the Community Treasury, which currently holds over a billion dollars worth of tokens, you will need to stake AXS in the near future.

Last but not least, AXS tokens can be used as a medium of exchange within the Axie NFT market. In some auctions and sales, the Axie team may use AXS as a qualification criterion for bidders.

Where to Buy Axie Infinity Shards Tokens (AXS)?

If you are interested in making an investment in the Axie Infinity Shards (AXS) Token, you can find it on Binance and Uniswap, which are the only trading platforms currently listing this token for sale. 

How Long Has Axie Infinity Shards Token (AXS) Been Around? 

The development of Axie Infinity began in the early months of 2018 and was a collaborative effort between Trung Thanh Nguyen, Aleksandar Leonard Larsen, and Jeffrey Zirlin. These three individuals were also involved in the establishment of the game development studio Sky Mavis in Ho Chi Minh City in 2018.

In November 2019, Sky Mavis raised $1.5 million to expedite the development of Axie Infinity. The undertaking piqued the interest of notable investors, such as Yat Siu, CEO of Animoca Brands, Sébastien Borget, CEO of The Sandbox, and Simon Kim, CEO of Hashed.

As a result of this creative initiative, the Axie Infinity Shard Token (AXS) was released in November 2020. When playing Axie Infinity, the AXS token is the main engine that keeps everything going. Players can acquire, trade, and increase their token wealth by participating in the game.

What’s Controversial About Axie Infinity Shards Token (AXS)?

Active Player, a website that tracks gaming data, reports that the average monthly number of players for Axie Infinity has dropped to 701,447, a level not seen since January 2021.

In January of this year, just before the onset of the crypto winter, the peak of the monthly Axie Infinity player population was recorded at 2.78 million. 

How Many AXS Tokens Are There?

The AXS whitepaper states that the token will be fully released 65 months after the initial public offering. According to the guidelines, the AXS supply of 59,985,000 will be released into circulation at the outset, representing 22.22% of the total supply. However, 270,000,000 is the maximum number of AXS tokens that will be created.

Can AXS Be Mined?

No. AXS is a token built on the Ethereum network, and ETH is the only cryptocurrency that can be mined on this blockchain. As a result, the AXS transaction processing is funded by ETH mined by the crypto miners. 

Market Cap and Price History of Axie Infinity Shards Token (AXS)

According to CoinMarketCap, the AXS token on the platform hit an all-time high of $165.37 on November 6, 2021, during the last P2E boom that occurred in 2021.

Biggest Competitors of Axie Infinity Shards Token (AXS)

The in-game assets of Axie infinity are represented by non-fungible tokens (NFTs), which are ostensibly inspired by the likes of Pokemon and the Japanese portable digital pet Tamagotchi.

What Does the Axie Infinity Shards Token (AXS) Project Road Map Look Like?

The Axie Infinity whitepaper asserts that the game will eventually become a decentralized autonomous organization (DAO), giving players a complete say over its direction.

As part of its public unveiling, Axie Infinity has also provided a comprehensive plan outlining its planned future initiatives. All significant past and future benchmarks have been incorporated into the road map to show the progression of the project.

The AXS token roadmap also indicates that the rate of AXS issuance is anticipated to be slightly slower than the rate at which the token will be unlocked. Even if the tokens are issued, the Play to Earn and Ecosystem fund distributions will only happen once the game is fully prepared for the expansion phase.

Pros and Cons of Axie Infinity Shards Token (AXS)

Pros

• There is a robust digital economy and ecosystem that supports the token;
• In-game cryptocurrency values are based on accurate market data;
• The game’s future development plan is looking bright.

Cons

• Cannot be mined;
• Overvaluation and hyperinflation are both risks when dealing with Axies NFTs;
• There are only a handful of markets where you can buy it.