SLP Rewards Disabled in Axie Infinity Origins to Curb Bot Farming and Stabilize Tokenomics

Axie Infinity Origins has removed SLP (Smooth Love Potion) rewards to address bot farming and reduce excessive token emissions, marking a strategic shift in tokenomics. The update is part of a broader initiative to stabilize Axie Infinity's economic model by curbing inflationary pressures and encouraging more sustainable player engagement. bAXS, a new app token tied to user accounts, has been introduced to enable staking, spending, and earning activities, aiming to foster deeper user participation.

Axie Infinity's AXS token has experienced a notable price rebound, surging over 30% in early January 2025, following structural reforms to the platform's tokenomics. These changes are designed to enhance user retention and reduce reliance on high-volume token emissions, a long-standing issue in the GameFi space. The AXS price has climbed above $1.20 after reaching a four-year low of $0.78.

The broader GameFi market saw a 2% decline in market capitalization to around $9.35 billion during the same period, but Axie Infinity outperformed many of its peers. This includes projects like World of Dypians, whose token (WOD) fell nearly 40% in the same week. The contrast in performance highlights the significance of structural changes in tokenomics for market confidence and investor sentiment.

In addition to the SLP changes, Axie Infinity has also introduced bAXS as a new layer of economic activity. This token, which is linked to user accounts, allows players to stake, spend, or earn value, providing more avenues for user interaction and economic activity. The launch of bAXS is seen as a critical step in the platform's pivot toward long-term sustainability and player engagement.

A recent governance proposal also authorized the staking of 2,829 ETH (valued at approximately $9 million) from the community treasury to generate yield and optimize asset management. This move is expected to improve the efficiency of the project's treasury and contribute to the financial sustainability of the platform. The broader institutional adoption of digital assets, including initiatives like State Street's tokenized products and Old Glory Bank's digital integration, further supports the long-term viability of such strategies.

The update also coincides with the pre-season launch of Axie Infinity Origins Seizoen 9, which introduces balance adjustments and new axies like Bard and Machito. These changes aim to enhance competitive fairness and expand gameplay strategies, while also incorporating SLP adjustments to ensure a more equitable distribution of rewards.

Why Did Axie Infinity Remove SLP Rewards?

The decision to disable SLP rewards in the Origins mode is primarily aimed at curbing bot farming and reducing the rate of token inflation. SLP had previously been a central component of the platform's economy, but its high emission rates and susceptibility to automated exploitation led to concerns about long-term sustainability. By removing these rewards, the project hopes to create a more balanced and fair environment for players while also improving the token's supply dynamics.

The removal of SLP rewards is also aligned with the broader goals of the bAXS token launch. By introducing a new token that is tied to user accounts, Axie Infinity is encouraging more direct and sustainable engagement. This shift is intended to create a more stable and rewarding environment for players, reducing the reliance on high-quantity SLP emissions and promoting more meaningful interactions within the ecosystem.

How Might These Changes Affect the AxS Token?

The introduction of bAXS and the removal of SLP rewards are expected to have a positive impact on the AxS token's long-term value. By reducing the rate of token emissions and increasing user engagement through the bAXS token, the platform is positioning itself for a more sustainable economic model. The recent surge in AXS price, alongside a significant increase in trading volume, suggests that investors are responding positively to these changes.

However, challenges remain, including regulatory uncertainty and market volatility, which are common concerns in the crypto and GameFi space. The broader market has also seen mixed developments, with some projects, like Pixiland, exiting the Web3 space entirely. This underscores the importance of continued innovation and adaptation for Axie Infinity as it navigates the evolving digital asset landscape.

What Are the Implications for the Axie Infinity Community?

The changes are expected to have a direct impact on the Axie Infinity community, particularly for players and investors who rely on in-game rewards for income. The removal of SLP rewards may initially reduce short-term earnings for some players, but the long-term benefits of a more stable and sustainable economic model could outweigh these initial challenges. The introduction of bAXS also provides new opportunities for players to earn and stake tokens, further diversifying the platform's income streams.

The broader Axie Infinity community will also need to adapt to the new economic model, which includes new gameplay mechanics. The pre-season updates, which include new axies and balance adjustments, are expected to contribute to a more engaging and competitive environment for players. These changes, combined with the structural tokenomics reforms, are likely to shape the platform's trajectory in the coming months and years.

Overall, the recent developments in Axie Infinity reflect a strategic shift toward sustainability and long-term value creation. As the project continues to evolve, the focus on improved user engagement, stable tokenomics, and institutional adoption will likely play a crucial role in determining its future success.