AXS Surges 123% as Axie Infinity Introduces bAXS to Stabilize Tokenomics

Axie Infinity introduced bonded AXS (bAXS), a non-tradable token tied to in-game activities, to reduce bot activity and stabilize token inflation according to reports. The AXS token surged over 123% in the week following the structural overhaul to its in-game reward system, signaling strong market confidence in the new model. The bAXS model, which is backed one-to-one by AXS and used for breeding, evolving, and staking, aims to prioritize real players and discourage short-term speculative behavior.

Axie Infinity launched Origins Season 16 on January 21, 2026, marking the first season where all competitive rewards are distributed in bAXS. The new reward system introduces account-bound tokens that cannot be transferred by default, reducing the influence of bots and incentivizing long-term gameplay.

The AXS token has seen a 130% increase week over week and a 190% increase month over month, reaching around $2.50. Reputation-linked Treasury fees for converting bAXS to AXS have drawn attention from the market, with high-reputation players facing lower conversion costs.

The success of the bAXS model will depend on its adoption and how effectively it curbs speculative behavior and bot farming. Players can convert bAXS to AXS for a fee, with lower fees for high-reputation players. The developers aim to stabilize the in-game economy by limiting the tradability of rewards and managing the oversupply of Axie NFTs.

How does bAXS affect AXS supply and tradability?

The introduction of bAXS aims to reduce the number of new AXS tokens entering the market, potentially creating a supply shock that could drive up prices. By limiting the tradability of AXS and introducing a non-tradable bonded version, the developers are trying to curb the bot activity that has dominated the game in recent months.

The new model reduces the liquidity of AXS by making it non-transferable by default, which is expected to create a more balanced and sustainable economic environment for real players. The structural reforms also include NFT burn mechanics and plans for an MMO expansion to further enhance the in-game economy.

What are the potential implications for real players and bots?

The new reward system is designed to prioritize real players over bots by introducing conversion fees based on a player's Axie Score. This means high-reputation players pay lower fees, encouraging long-term engagement and discouraging short-term "farm and dump" behavior.

The success of the bAXS model will depend on its adoption and the overall effectiveness of the new reward system. While the initial response from the market has been positive, there are risks related to governance challenges and player acceptance of the new system.

The broader strategy is to stabilize the platform's economic model and align user activity with token utility. bAXS restricts tradability and incentivizes long-term gameplay, aiming to reduce sell pressure and align user incentives with platform sustainability.