Axie Infinity Replaces AXS Rewards With bAXS AppToken to Stabilize Tokenomics

Axie Infinity is replacing AXS rewards with bAXS AppTokens, which are pegged 1:1 to AXS and aim to control token supply and reduce selling behavior.

The bAXS tokens are designed to be spent or staked within the ecosystem, with its value directly tied to AXS.

AXS has seen a significant price rebound, with a surge of over 100% in a week attributed to the launch of bAXS and other ecosystem changes.

Axie Infinity is taking a novel approach to tokenomics by replacing AXS rewards with a new token variant called bAXS. This move, announced by co-founder Jeff Zirlin, is part of a broader plan to stabilize the token supply and encourage in-game engagement.

Unlike AXS, which can be freely traded, bAXS is designed to be spent or staked within the ecosystem, with its value directly tied to AXS.

The introduction of bAXS is intended to curb speculative trading and bot farming, two challenges that have historically affected Axie Infinity's in-game economy. By binding bAXS to user accounts and linking fees to user scores, the platform aims to incentivize long-term engagement and discourage short-term selling.

AXS has experienced notable price movements following the announcement of bAXS and other structural changes. The token surged over 100% in a week, with a market cap of around $346 million and 24-hour trading volume reaching $997 million. This price action reflects renewed interest in the GameFi sector, though analysts emphasize that long-term success will depend on adoption and integration of bAXS into key features like staking and governance.

What Are the Implications for Axie Infinity's Tokenomics?

The transition to bAXS marks a significant shift in how Axie Infinity manages its token supply. Traditional AXS tokens can be freely traded, contributing to volatility and selling pressure. By replacing AXS with bAXS for rewards, the platform aims to stabilize the token supply and retain value within the ecosystem.

This structural change is expected to reduce inflationary pressures by discouraging speculative behavior. The fees collected from bAXS transactions will be directed to the Axie treasury, further reinforcing the platform's financial sustainability.

Additionally, the Axie Score system, which links governance influence and rewards to user engagement, is expected to enhance long-term player retention. This system aligns user incentives with the ecosystem's sustainability, potentially creating a more stable and engaged user base.

How Does This Affect the Broader GameFi Market?

The GameFi market, which includes tokens like AXS, has been volatile in 2026, with total market capitalization fluctuating significantly. Axie Infinity's move to bAXS has outperformed many of its peers, with AXS seeing a price rebound after hitting a four-year low.

Other GameFi projects, such as World of Dypians and Pixiland, are also adjusting their strategies in response to market volatility and regulatory challenges. These changes reflect a broader trend toward more sustainable tokenomics and user-centric design.

The introduction of bAXS is part of a larger 2026 strategy to rejuvenate the Axie Infinity ecosystem and improve capital management. Analysts suggest that the success of these reforms will depend on continued user engagement and favorable market conditions.

Overall, the structural changes to Axie Infinity's tokenomics are expected to have a positive impact on the broader GameFi market by encouraging innovation and sustainable growth.