SLP Rewards Disabled in Axie Infinity Origins to Curb Bot Farming

Axie Infinity Origins removed SLP rewards to address bot farming and reduce excessive token emissions. This strategic move aims to stabilize the game's economic model. The removal of SLP rewards is part of a broader strategy to shift to bAXS, a new app token tied to user accounts, designed to encourage sustainable player engagement.

SLP had become a central component of the game's economy but contributed to inflationary pressures. The removal of SLP rewards from in-game activities is expected to reduce these pressures and encourage players to engage more directly with the game's ecosystem.

The introduction of bAXS aims to fill the gap left by the removal of SLP. Tied to individual user accounts, bAXS allows for staking, spending, and earning, which are expected to drive deeper engagement and a more balanced economic model. The token also supports a governance proposal that authorized staking 2,829 ETH from the community treasury to generate yield and optimize asset management.

What is the impact on AXS token price?

The AXS token experienced a notable price rebound, surging over 30% in early January 2025 following these reforms. This move aligns with trends in sustainable tokenomics within the sector and aims to enhance the platform's long-term viability.

Trading volume for AXS surged over 1,600% in 24 hours, reaching approximately $380 million, indicating renewed investor confidence. This volume spike, combined with price breakouts above $1, suggests a broader move out of a prolonged accumulation phase.

What are the risks and limitations of this strategy?

While the removal of SLP rewards is expected to provide long-term benefits by stabilizing the tokenomics, it may initially reduce short-term player earnings. The success of bAXS hinges on its adoption and integration into the Axie Infinity ecosystem.

Analysts suggest that its role in governance will be crucial for long-term economic growth. Additionally, the project's recent governance proposal to stake 2,829 ETH from the community treasury highlights a more active approach to capital management. However, the broader GameFi market declined by 2% in market cap to $9.35 billion during the same period.

Cybersecurity threats remain a major concern, with over $7 billion lost to cyberattacks between 2022 and 2024. The Ronin Network has seen its market cap drop by over 90% from 2024 highs, underscoring regulatory and security challenges in crypto-integrated gaming ecosystems.

How does this align with the broader market trends?

The move aligns with trends in sustainable tokenomics within the sector and aims to enhance the platform's long-term viability. A governance proposal also authorized staking 2,829 ETH from the community treasury to generate yield and optimize asset management.

Truflation has also launched a GameFi Index to track blockchain gaming platforms, including Ronin (RON), providing investors with real-time metrics like market cap and user activity. This move reflects a broader focus on improving the economic and user engagement models within the gaming sector.