Smooth Love Potion Rewards Disabled to Curb Bot Farming and Stabilize Tokenomics

Axie Infinity Origins has disabled SLP rewards to address bot farming and reduce token inflation according to reports. The introduction of bAXS is intended to foster sustainable user engagement and balance gameplay fairness as part of this strategy. The AXS token has seen a notable price rebound, surging over 30% in early January 2025, following these reforms according to data.

Axie Infinity Origins has taken significant steps to stabilize its economic model by disabling SLP (Smooth Love Potion) rewards, a move aimed at curbing bot farming and reducing excessive token emissions according to reports. The removal of SLP rewards is part of a broader strategy to address inflationary pressures and stabilize tokenomics as part of this initiative. This initiative is expected to have a lasting impact on the platform's economic structure and user engagement.

The new bAXS token, introduced as part of this strategy, allows for staking, spending, and earning activities tied to user accounts

. This shift is intended to foster deeper user participation and create a more balanced environment for players. A governance proposal has authorized the staking of 2,829 ETH from the community treasury to generate yield and optimize asset management as part of this strategy.

Axie Infinity's AXS token has experienced a notable price rebound, surging over 30% in early January 2025 according to reports. This movement reflects investor confidence in the updated strategy, despite a 2% decline in the broader GameFi market. The AXS token's price climb above $1.20 follows its reaching a four-year low of $0.78 as reported. This price surge coincides with a marked improvement in daily trading volume and a rise in the overall market cap, signaling renewed market participation.

What are the key changes in Axie Infinity's tokenomics strategy?

Axie Infinity's recent changes include the removal of SLP rewards and the introduction of bAXS according to reports. These steps are part of an effort to stabilize tokenomics and reduce inflationary pressures. The AXS token's price movement indicates renewed investor interest in the project and the broader GameFi sector as data shows. The bAXS token is designed to be a user-linked token for staking, spending, and earning according to reports. This shift aims to drive deeper engagement and a more balanced economic model by encouraging players to participate in a more sustainable way.

The AXS token's price surge, over 30% in early January 2025, reflects investor confidence in the updated strategy as reported. The removal of SLP rewards is expected to reduce inflationary pressures and encourage players to engage more directly with the game's ecosystem according to analysis. The AXS token's price movement and increased trading volume suggest that the market is reacting positively to these changes, although the broader GameFi market has seen a 2% decline.

What are the potential risks and limitations of these changes?

While the removal of SLP rewards and the introduction of bAXS are expected to stabilize tokenomics, they also introduce new risks as reported. High token concentration and the risks of governance attacks, such as voter apathy or hostile takeovers, remain unresolved according to analysis. For the reforms to be truly sustainable, it is crucial to balance inflation control with equitable distribution and active governance. Additionally, the market's mixed technical indicators suggest that caution is warranted, as further volatility is possible in the short term as data indicates.

The AXS token's recent performance, including a significant price surge, has attracted attention from both retail and institutional investors according to reports. However, the mixed sentiment and technical signals indicate that the market may experience further volatility. The launch of bAXS is seen as a major catalyst for the project, offering increased utility and flexibility within the ecosystem as part of this strategy. This shift aims to stabilize tokenomics and improve user engagement, potentially leading to long-term gains.

What is the broader context for these changes in the GameFi sector?

The GameFi sector has seen a 55% contraction in investment in 2025 compared to 2024, prompting a shift toward sustainable, gameplay-focused models according to reports. The metaverse economy, driven by blockchain, NFTs, and play-to-earn (P2E) gaming, is projected to grow significantly. Despite these challenges, institutional adoption is increasing, and the sector remains on a strong trajectory as data shows.

The Ethereum gaming NFT ecosystem is evolving into a structured digital economy where ownership, gameplay, and on-chain infrastructure intersect according to analysis. This ecosystem supports interconnected economies where in-game assets have value beyond a single platform. The use of NFTs and decentralized finance is enabling players to trade, stake, and use in-game assets in broader on-chain economic activities.

Axie Infinity's transition to bAXS is part of a broader trend in the GameFi sector to adopt more sustainable economic models as reported. This move reflects a shift from speculative tokenomics to a model that prioritizes user-driven value. The AXS token's recent performance and the project's strategic changes highlight the importance of balancing innovation with long-term sustainability in the evolving GameFi landscape.

What is the significance of the Axie Score system in this context?

The Axie Score system is a key component of Axie Infinity's tokenomics strategy according to reports. It allocates governance influence based on player contributions, tying token utility to active participation. This system is designed to encourage organic user growth and ensure that token utility is aligned with real-world usage and community contributions as part of this strategy. The integration of Axie Score into the selling mechanic further reinforces this alignment by introducing variable fees based on player tier.

The Axie Score system also reflects a broader shift in the GameFi sector toward models that prioritize user engagement and community-driven governance according to analysis. By tying token utility to player contributions, the system aims to create a more sustainable economic model that rewards active participation. This approach aligns with the broader goals of curbing token inflation and improving user retention, which are critical for long-term success in the GameFi sector.

The Axie Score system is part of a larger effort to decentralize the project and ensure that the community has control over key decisions according to reports. This includes the management of the $40 million AXS Community Treasury via AIP-002 and the Axie Infinity Foundation. The system's emphasis on player contributions and governance influence is expected to enhance transparency and accountability, further supporting the project's long-term sustainability.

How does Axie Infinity's strategy compare with other GameFi projects?

Axie Infinity's strategy of disabling SLP rewards and introducing bAXS is part of a broader trend in the GameFi sector according to reports. Other projects, such as Sorare and World of Dypians, have also adopted similar strategies to address token inflation and improve user engagement as part of this trend. The use of NFTs and decentralized finance is enabling these projects to create more sustainable economic models that prioritize user-driven value over speculative gains.

The Ethereum gaming NFT ecosystem is particularly notable for its structured approach to digital economies according to analysis. Developers use NFTs to represent ownership, allowing players to own, trade, and transfer digital assets across multiple games. This approach supports interconnected economies where in-game assets have real-world utility beyond gameplay.

While Axie Infinity's strategy has been well-received by the market, it is not without its challenges according to reports. The risks of governance attacks and high token concentration remain unresolved, highlighting the need for continued innovation and adaptation. The project's focus on user-driven value and sustainable economic models is expected to position it as a leader in the evolving GameFi landscape.

Axie Infinity's transition to bAXS and the introduction of the Axie Score system are part of a broader effort to align token utility with user behavior according to analysis. This approach is expected to enhance user engagement and create a more sustainable economic model. The project's strategic changes reflect a shift from speculative tokenomics to a model that prioritizes long-term value creation and community-driven governance.

The Axie Score system and bAXS token are expected to play a key role in the project's long-term success according to reports. By tying token utility to player contributions and governance influence, the system aims to create a more sustainable and equitable economic model. This approach is expected to enhance transparency, accountability, and community participation, further supporting the project's long-term sustainability.

The broader GameFi sector is also seeing a shift toward sustainable, gameplay-focused models as data shows. This trend is driven by the need to address token inflation and improve user engagement. As the sector continues to evolve, projects that prioritize user-driven value and sustainable economic models are expected to gain a competitive advantage. Axie Infinity's strategic changes are a clear example of this trend, positioning the project as a leader in the evolving GameFi landscape.

The iGaming industry is being reshaped by increased demand for speed and convenience, the expansion of cryptocurrency and alternative payment options, and the use of AI for personalization and risk management according to analysis. Live gaming and immersive technologies like VR/AR are also gaining traction, while regulatory changes are leading to market fragmentation. The rise of casual and social gambling elements is attracting a broader audience to the sector. These trends are expected to further diversify the iGaming landscape and create new opportunities for innovation and growth.

What does the future hold for Axie Infinity and the GameFi sector?

Axie Infinity's recent changes are expected to have a lasting impact on the project's long-term sustainability according to reports. The removal of SLP rewards and the introduction of bAXS are part of a broader strategy to stabilize tokenomics and reduce inflationary pressures. The AXS token's recent price surge reflects renewed investor confidence in the project and the broader GameFi sector.

The GameFi sector is expected to continue evolving in 2025 and beyond as data shows. The shift toward sustainable, gameplay-focused models is likely to continue, driven by the need to address token inflation and improve user engagement. Institutional adoption is also expected to increase, further supporting the sector's growth and maturity.

The Ethereum gaming NFT ecosystem is projected to grow significantly, driven by blockchain and P2E gaming according to analysis. The use of NFTs and decentralized finance is enabling players to trade, stake, and use in-game assets in broader on-chain economic activities. This trend is expected to create new opportunities for innovation and growth in the sector.

Axie Infinity's transition to bAXS and the introduction of the Axie Score system are expected to play a key role in the project's long-term success according to reports. By tying token utility to player contributions and governance influence, the system aims to create a more sustainable and equitable economic model. This approach is expected to enhance transparency, accountability, and community participation, further supporting the project's long-term sustainability.

The broader GameFi sector is also expected to see continued innovation and growth in 2025 and beyond as data shows. The use of NFTs, decentralized finance, and blockchain technology is expected to create new opportunities for innovation and growth. Projects that prioritize user-driven value and sustainable economic models are expected to gain a competitive advantage in the evolving market.