AXS Surges as Axie Infinity Overhauls Tokenomics to Stabilize Game Economy

Axie Infinity's tokenomics overhaul includes the introduction of non-transferable bAXS to curb botting, align gameplay with AXS utility, and reduce token inflation according to analysis.

The AXS token has surged over 123% since January 14 as structural changes reduce supply pressure and redirect fees to the project's treasury according to reports.

bAXS introduces a reputation-based exchange system, penalizing speculative trading and rewarding long-term engagement with in-game activities as analytics show.

Axie Infinity has introduced a new tokenomics model to address long-standing issues in its game economy, including bot activity and inflationary pressures from AXS and SLP tokens. By introducing bAXS, a non-transferable token pegged 1:1 to AXS, the project aims to align gameplay with token utility and reduce speculative trading according to the update. This has led to a notable price surge in AXS, with the token gaining over 123% since January 14 as data shows.

The new tokenomics model replaces AXS with bAXS in core in-game functions like breeding, evolving, and staking Axies. bAXS is account-bound, meaning it cannot be traded or transferred between users. This design is intended to limit the influence of short-term speculation and create a more sustainable token economy according to analysis.

In addition to reducing bot activity, the structural reform includes halting SLP emissions in the Origins mode, which has further reduced inflation and altered how rewards are distributed as reported. Players are now incentivized to engage with the ecosystem through long-term participation, as bAXS exchange rates are tied to Axie Score, a reputation metric earned through ownership of rare Axies and participation in governance according to analytics.

How Has the AXS Token Responded to These Structural Changes?

The AXS token has seen a significant price surge of over 190% in the past month, driven by the tokenomics update and broader sector trends. This surge is attributed to reduced sell pressure, tighter supply dynamics, and renewed interest from long-term investors according to market analysis. The price movement has been supported by rising spot volume and futures open interest, signaling growing trader confidence as data indicates.

The AXS price increase has outpaced many other gaming tokens, with the token gaining over 12% in a 24-hour period according to trading data. Analysts point to the introduction of bAXS and the shutdown of SLP inflation as the primary catalysts as reported. These changes are expected to strengthen AXS's demand beyond passive holding by integrating the token more deeply into the game's reward and governance systems.

What Structural Risks Remain in Axie Infinity's Tokenomics Model?

Despite the positive price movement, the bAXS model introduces new challenges, including potential liquidity constraints and market fragmentation. Since bAXS is non-transferable and not directly tradable, it may reduce the token's accessibility on traditional exchanges, potentially limiting broader market participation according to analysis.

Additionally, the success of the new tokenomics hinges on long-term player engagement. If the Axie Score and bAXS-based incentives fail to attract sustained participation, the structural benefits may not materialize. The project has also had to halt SLP emissions, which could affect short-term player motivations as reported.

Nevertheless, the bAXS model represents a strategic shift in how Axie Infinity aligns token utility with core gameplay. By reducing speculative activity and focusing on organic engagement, the project aims to create a more stable and sustainable economic environment for both players and investors according to analytics.