Axie Infinity (AXS) - Blockchain Guide

Introduction to Axie Infinity

Axie Infinity popularized the play-to-earn (P2E) gaming model, demonstrating that blockchain games could generate real economic value for players. At its peak in 2021, the game had millions of active players earning income through gameplay, particularly in the Philippines and developing economies.

Developed by Sky Mavis and led by Trung Nguyen, Axie features collectible creatures (Axies) that players breed, battle, and trade. The game’s success led to the creation of Ronin, a dedicated Ethereum sidechain built specifically to handle Axie’s transaction volume through smart contracts.

The Play-to-Earn Revolution

What Play-to-Earn Means

Economic model:

Players earn tokens through gameplay
Assets have real value
Time investment yields returns
Skill and strategy rewarded

Axie’s Impact

Industry influence:

Proved P2E viability
Inspired countless clones
Attracted gaming investment
Defined NFT gaming

The Philippines Phenomenon

Social impact:

Income during COVID
Scholarship model
Guild formation
Economic narrative

How Axie Infinity Works

Game Mechanics

Core gameplay:

Collect and breed Axies (NFTs)
Battle other players
Complete quests
Earn SLP tokens

Axies

NFT creatures:

Unique characteristics
Different body parts
Battle abilities
Breeding potential

Economy

In-game economics:

SLP: Earned through gameplay
AXS: Governance and staking
Breeding costs
Marketplace trading

Technical Infrastructure

Ronin Sidechain

Dedicated blockchain:

Built for Axie specifically
Low transaction costs
Fast confirmations
Ethereum bridge

Why Ronin Was Needed

Scaling requirements:

Ethereum fees prohibitive
Transaction volume massive
Gaming needs real-time
User experience priority

Current Architecture

Technical setup:

Ronin for gameplay
Ethereum for assets
Bridge between chains
Proof of Stake consensus

Technical Specifications

Metric	Value
Peak DAU	2.7 million (2021)
Blockchain	Ronin
NFT Standard	ERC-721
Tokens	AXS, SLP
Asset Type	Axie NFTs, Land
Bridge	Ronin Bridge

The Token Economy

AXS (Axie Infinity Shards)

Governance token:

Protocol governance
Staking rewards
Treasury access
Ecosystem direction

SLP (Smooth Love Potion)

Utility token:

Earned through gameplay
Used for breeding
In-game utility
Variable supply

Tokenomics Challenges

Economic issues:

SLP inflation problems
Unsustainable emissions
Bear market impact
Economic redesign needed

The Ronin Hack

March 2022 Incident

Major security breach:

$625 million stolen
Validator keys compromised
North Korean hackers
Largest DeFi hack

Recovery

Response:

Sky Mavis covered losses
Fundraising completed
Security improvements
Operations continued

Lessons Learned

Security changes:

More validators added
Decentralization increased
Monitoring improved
Bridge security enhanced

Ecosystem Components

Axie Marketplace

NFT trading:

Buy and sell Axies
Land trading
Part breeding
Secondary market

Land (Lunacia)

Virtual real estate:

Plot ownership
Future gameplay
Resource generation
Community spaces

Builders Program

Third-party development:

Community-built experiences
Developer incentives
Ecosystem expansion
Innovation support

Competition and Positioning

vs. Other P2E Games

Game	Focus	Status
Axie Infinity	NFT creatures	Rebuilding
Illuvium	Open world	Development
Big Time	Action RPG	Growing
Gods Unchained	Card game	Active

Market Position

Current state:

Pioneer status
Reduced player count
Ongoing development
Brand recognition

Challenges

Competitive pressures:

Many P2E alternatives
Market saturation
Player retention
Sustainable economics

Origins and Axie Classic

Game Evolution

Version history:

Classic Axie (original)
Axie Infinity: Origin (new)
Gameplay improvements
Free-to-play options

Origins (New Version)

Modern updates:

Free starter Axies
Improved gameplay
Better onboarding
Competitive features

Challenges and Criticism

Economic Sustainability

Core concerns:

Token inflation issues
Unsustainable yields
Ponzi-like criticisms
New player dependency

Player Decline

Market reality:

Peak users not maintained
Bear market impact
Competition increased
Engagement challenges

Regulatory Questions

Legal considerations:

Securities classification
Gaming regulations
Regional restrictions
Compliance needs

Game Quality

Entertainment value:

Gameplay depth questions
Repetitive mechanics
Fun vs. earning tension
Game design challenges

Recent Developments

Origins Success

New version:

Better gameplay
Improved balance
Competitive seasons
Player engagement

Ronin Ecosystem

Beyond Axie:

Other games on Ronin
DeFi development
Ecosystem expansion
Platform evolution

Mavis Market

Expanded marketplace:

Ronin-wide NFT trading
Multiple game support
Unified infrastructure
Ecosystem service

Future Roadmap

Development priorities:

Gameplay: Enhanced gaming experience
Economy: Sustainable tokenomics
Ronin: Ecosystem growth
Land: Virtual world development
Esports: Competitive gaming

Conclusion

Axie Infinity holds an important place in crypto gaming history as the project that demonstrated play-to-earn’s potential. The peak of 2.7 million daily active users proved that blockchain games could achieve mainstream scale.

The challenges since—token inflation, the Ronin hack, player decline—illustrate the difficulties of sustainable P2E economics. The Origins update and broader Ronin ecosystem development represent attempts to evolve beyond initial limitations.

For those interested in blockchain gaming’s evolution and lessons learned from the P2E boom, Axie provides essential case study. The project’s ability to reinvent itself and maintain relevance will determine its long-term position in gaming.

Technology Stack