Axie Infinity Replaces AXS Rewards With bAXS AppToken to Stabilize Tokenomics

• Axie Infinity has replaced AXS rewards with bAXS AppTokens to reduce speculative trading and stabilize token supply according to AInvest.
• bAXS tokens are account-bound, pegged 1:1 to AXS, and incentivize long-term participation through engagement metrics as reported.
• Selling bAXS incurs fees based on a user's Axie Score, with the collected fees funding the Axie Infinity treasury according to AInvest.

Axie Infinity has introduced bAXS to replace AXS in its token distribution system. This structural change aims to stabilize token supply and reduce bot farming by tying token access to user accounts according to AInvest.

bAXS is earned through gameplay, staking, or selling, and designed to be spent or staked within the ecosystem according to AInvest. The mechanism discourages short-term selling and promotes organic engagement according to AInvest.

The token is backed 1:1 by AXS and includes fees tied to a user's Axie score, with the collected fees funding the Axie treasury according to Yahoo Finance. Analysts suggest that the success of bAXS depends on its adoption and integration into governance and staking according to AInvest.

What Is bAXS and How Does It Work?

bAXS is an account-bound AppToken designed to curb speculative trading and stabilize the in-game economy according to MEXC. The token operates on a 1:1 peg with AXS but introduces mechanisms that differentiate it from traditional trading dynamics according to AInvest.

Selling bAXS requires users to pay fees based on their Axie score, with lower fees incentivizing long-term, active participation according to AInvest. These fees are redirected to the Axie Infinity treasury, reinforcing the project's financial health according to AInvest.

What Are the Implications for Investors and the Axie Infinity Ecosystem?

The introduction of bAXS is part of a broader 2026 strategy to rejuvenate the ecosystem and improve capital management according to AInvest. The AXS token has seen a price rebound after the bAXS launch, but derivatives data show bearish sentiment, with a negative funding rate and a long-to-short ratio below one according to Yahoo Finance.

The success of bAXS depends on adoption and how well the token supports a sustainable economic model according to AInvest. If the changes lead to increased user engagement and reduced sell pressure, it could help Axie Infinity regain market share in the GameFi space according to AInvest.

What Are the Risks and Limitations of bAXS?

Risks include reduced liquidity for some users and uncertain effectiveness of engagement metrics in curbing inflation according to AInvest. The bAXS model operates on a 1:1 peg with AXS but introduces mechanisms that differentiate it from traditional trading dynamics according to AInvest.

The transition from AXS to bAXS is expected to stabilize the economy by reducing the supply of AXS in circulation and encouraging organic growth through player-driven rewards according to AInvest.