Axie Infinity Launches bAXS Token to Incentivize Staking and Game Utility

• Axie Infinity has launched a new bonded AXS (bAXS) token to incentivize in-game spending and long-term participation. The token replaces AXS in core gameplay functions like breeding and evolution, aligning token utility with gameplay activities.

• The bAXS token is backed 1:1 with AXS and distributed in two rounds to eligible wallets. The first airdrop of 100,000 bAXS tokens went to wallets staking at least 10 AXS, with allocations based on Axie Score and staked AXS amounts. Participants in the first airdrop will also gain increased weight in the second airdrop.

• bAXS is designed to reduce speculative trading by making it non-transferable and restricting its use to in-game activities. This shift is intended to stabilize the in-game economy and encourage deeper engagement with the ecosystem.

What is the purpose of the bAXS token?

The bAXS token aims to promote in-game spending by tying token usage to activities like Axie evolution, breeding, and power-ups. Unlike AXS, which is often traded externally, bAXS is designed for utility within the Axie Infinity ecosystem.

By aligning token utility with gameplay, the project hopes to reduce inflationary rewards and create a more sustainable, player-driven economy. The token will also support the upcoming land-based game, Terrariums, where players can use bAXS to purchase consumable power-ups for Axies and their environments.

How does bAXS distribution work and who qualifies?

The first airdrop of bAXS required staking at least 10 AXS by February 5. The amount of bAXS received by each participant is determined by their Axie Score and total staked AXS.

The second airdrop is linked to staking activity from the first and has not yet been detailed. Players with higher Axie Scores are given greater eligibility in the second airdrop, reinforcing the connection between gameplay and token utility.

Both airdrops are part of a broader strategy to encourage long-term staking and in-game spending. The tokens are non-transferable, meaning they can only be used within the game and cannot be traded or sold on external markets.

What are the implications for Axie Infinity's ecosystem and market?

The introduction of bAXS is expected to reduce the oversupply of Axie NFTs and address bot farming and token inflation. By making bAXS non-transferable and restricting its use to in-game activities, Axie Infinity aims to shift player focus from speculative trading to long-term engagement.

The AXS price has surged by 123% since mid-January, reflecting increased investor confidence in the project's strategic direction. As the game introduces new features like Atia's Legacy and Terrariums, demand for in-game upgrades and bAXS spending is expected to grow.

The bAXS token also supports the new land-based game, Terrariums, where players can earn rewards through in-game activities. This new system reinforces Axie Infinity's goal of building a sustainable and stable economic model.