AXS Surges as Axie Infinity Overhauls Tokenomics to Stabilize Game Economy

Axie Infinity has introduced a non-transferable token called bAXS to combat bot farming and stabilize token inflation by replacing AXS in core gameplay functions according to reports.

The bAXS token is designed to align gameplay with token utility and encourage long-term engagement through mechanisms like Axie Score.

Since the announcement, the AXS token has experienced a 123% surge in price, attributed to reduced speculative trading and renewed investor confidence.

Axie Infinity's new tokenomics model includes non-transferable bAXS to curb botting and speculative trading while stabilizing the in-game economy as reported. The bAXS token is account-bound and replaces AXS in core functions like breeding, staking, and evolving Axies according to market analysis. This design aims to limit the influence of short-term speculation and create a more sustainable token economy as noted.

The introduction of bAXS has led to significant price movement in AXS, with the token gaining over 123% since January 14. This surge is attributed to reduced supply pressure and renewed interest from long-term investors according to reports.

What Is bAXS and How Does It Work?

bAXS is a non-transferable token tied to in-game activities, aiming to reduce bot activity and stabilize token inflation according to analysis. Players must convert bAXS to AXS with a fee paid to the Axie Infinity treasury as detailed. The fees are lower for players with higher Axie Scores, incentivizing long-term engagement according to market data.

What Are the Market Implications of bAXS?

The introduction of bAXS has led to a notable increase in AXS price, with a 123% surge in the week following the announcement. This is attributed to renewed investor confidence and whale accumulation according to reports. However, potential liquidity constraints from non-tradable bAXS and dependency on sustained player engagement remain risks for the model as noted.

What Is the Long-Term Outlook for Axie Infinity and AXS?

Axie Infinity is focusing on long-term sustainability and economic balancing rather than explosive growth according to industry analysis. The AXS token's valuation is now tied to refinement rather than rediscovery as reported. The success of the bAXS model will depend on its adoption and the ability to attract new users beyond the existing play-to-earn model according to market forecasts.

The AXS token has seen a 21% weekly gain and a 3% increase on Tuesday, attributed to the introduction of bAXS. Technically, AXS holds above the 200-day EMA, with improving short-term bias indicated by the 50-day EMA crossing above the 100-day EMA according to technical analysis. The token needs to break the 78.6% Fibonacci level at $2.640 to target a potential $3.707 level as forecasted.

Despite the positive movement, challenges remain, including high derivatives speculation and unresolved resistance levels in the price chart according to market reports. The success of the bAXS model will depend on its adoption and the overall effectiveness of the new reward system in curbing speculative behavior and bot farming as observed.