Axie Infinity Replaces AXS Rewards with bAXS AppToken to Stabilize Tokenomics

• Axie Infinity has launched bAXS, a 1:1 pegged AppToken, to replace AXS as the primary reward token according to reports.
• The bAXS token is designed to reduce sell pressure and speculative behavior by tying it to user accounts and introducing a fee-based selling model as described.
• AXS surged over 100% in the week following bAXS's launch, indicating strong investor sentiment according to data.

The bAXS model introduces a fee structure tied to a user's Axie Score and reputation, with higher scores translating to lower fees according to analysis. This mechanism aims to promote long-term engagement within the Axie Infinity ecosystem while curbing inflation and bot farming as noted. The token can be spent, staked, or sold, but remains bound to user accounts to prevent speculative trading according to reports.

The Axie Infinity team aims to stabilize supply and create a self-sustaining economic model through bAXS according to analysis. This includes redirecting fees collected from bAXS transactions to the Axie treasury to support broader ecosystem sustainability as reported. The success of this model will depend on user adoption and the continued engagement of players within the ecosystem according to analysis.

What is the impact of bAXS on AXS price movements?

AXS experienced a significant price increase, surging more than 100% in a week after the introduction of bAXS according to data. The surge was accompanied by high trading volume, reaching over $997 million in 24 hours, and improved market sentiment according to reports.

However, the price volatility reflects broader market uncertainty. AXS experienced a retracement of more than 14% following its initial surge according to analysis. Analysts suggest that the token's long-term performance will depend on user engagement and market conditions according to reports. The success of bAXS could serve as a blueprint for other GameFi projects aiming to stabilize in-game economies as noted.

How does bAXS aim to address issues like bot farming and inflation?

bAXS is earned through gameplay and tied to user accounts, which discourages bot farming and speculative trading according to reports. This structural change aligns user incentives with organic gameplay, promoting long-term engagement as described.

The token's design also includes a fee-based selling model, where users pay fees depending on their Axie reputation according to analysis. These fees are directed to the Axie treasury, supporting long-term sustainability and ecosystem development as reported.

By binding tokens to user accounts, bAXS limits the ability to sell or transfer tokens freely, reducing inflationary pressures and encouraging players to participate in the game according to reports. This model aims to create a more self-sustaining economic ecosystem by discouraging short-term speculative behavior as noted.