SLP Rewards Disabled in Axie Infinity Origins to Curb Bot Farming

Axie Infinity Origins has disabled SLP rewards to address bot farming and reduce excessive token emissions. This move aims to stabilize the platform's economic model and address inflationary pressures by introducing bAXS, a user-linked token for staking, spending, and earning. The initiative is designed to foster sustainable player engagement and a more balanced ecosystem.

The introduction of bAXS is a strategic step to reduce token inflation and improve player retention. bAXS is tied to user accounts and can be earned through gameplay, which is intended to promote organic participation and discourage speculative trading. This approach is expected to create a more self-sustaining economic model for the platform.

To further support its sustainability goals, Axie Infinity has staked 2,829 ETH from its treasury to generate yield and optimize asset management. This move is expected to reduce sell pressure on AXS and support long-term sustainability objectives. The AXS token has surged over 30% in early January 2025, reflecting investor confidence in the platform's updated strategy.

What is bAXS and How Does it Work?

bAXS is a new app token introduced by Axie Infinity to replace AXS rewards in the Origins game mode. It is earned through gameplay and bound to user accounts, which prevents easy transfer and reduces speculative trading behavior.

The token is designed to promote long-term engagement by enabling staking, spending, and earning within the ecosystem. This structural change is expected to create a self-sustaining economic model and encourage organic participation. The AXS token has seen a price rebound post-launch, but derivatives data indicate bearish sentiment.

What Are the Implications for the Market and Investors?

The price of AXS has surged over 60% following the launch of bAXS, indicating improved investor sentiment and liquidity in the ecosystem. Analysts highlight that the success of bAXS will depend on its adoption and integration into governance and staking, along with navigating broader GameFi market volatility and regulatory uncertainties.

The GameFi market has seen a 2% week-over-week decline in market capitalization to around $9.35 billion in early January 2025. Axie Infinity outperformed many of its peers, including World of Dypians (WOD), which declined nearly 40% on the week.

Co-founder Jeffrey "JiHo" Zirlin outlined ambitious plans for 2026, including the Atia's Legacy Open Beta project. This project aims to introduce deeper economic systems and more complex player-versus-player mechanics, marking a strategic shift for Axie Infinity. These developments are expected to influence engagement, retention, and the broader ecosystem's depth.