Most games work based on a “pay-to-win” model, where players must spend real money to get advantages over other players.
On the other end, the “play-to-earn” model gives players the ability to increase the value of their in-game assets and currencies that can be traded for real money, just by participating and interacting with the game.
And it’s no small amount. The amount earned just by playing these games can be so significant, many players are attracted to play it as a side hustle or even a full-time job. Having fun and de-stressing is no longer the main objective of playing games, it has now become a serious revenue stream for many worldwide.
One play-to-earn game dominating the scene is Axie Infinity.
What is Axie Infinity?
Axie Infinity was created by Vietnamese game-maker Sky Mavis with investments from billionaire and investor on the TV Show Shark Tank Mark Cuban as well as Reddit co-founder Alexis Ohanian. The game has skyrocketed ever since with the recent announcement that it has surpassed 1 million Daily Active players and at the time of writing $4 .88 Billion in market cap.
Axie Infinity is similar to trading card games such as Pokémon but on steroids. In Axie Infinity, you assemble a team of 3 creatures called Axies, that have unique characteristics and skills to compete against computer-controlled opponents or other real-life players.
Being built on the Ethereum blockchain allows Axie Infinity to incorporate non-fungible tokens or NFTs into the game, where each creature created is uniquely certified as one of a kind and cannot be duplicated. This creates scarcity and allows players to easily trade ownership via exchanges such as Uniswap and Binance. If you are not familiar with NFTs, I recommend that you read this article.
Token types
There are 2 types of tokens in the Axie Infinity universe:
- Axie Infinity Shard token (AXS) and,
- the in-game token, Smooth Love Potion (SLP).
AXS is the governance token for the Axie Infinity game. Holding AXS allows the player to vote and have a say in the development of the game instead of leaving it to the developers and core team. You can earn AXS by staking (committing your crypto holdings to secure and support a blockchain and confirm transactions from which you can earn rewards) and trading of NFTs.
SLP is the token that players gain from breeding then selling new Axies, training, and competing with their Axies by doing in-game quests or even battling with other players. SLP is the main resource that players want to obtain to sell for real money.
How much can you make from Axie Infinity?
There are two main ways to make money from Axie Infinity.
- Earning SLP and selling it for cash
According to a survey by Coin Gecko, players play the game every day for up to 2 hours with an average player typically earning 150-200 SLP a day and as of the time of writing, SLP is USD 0.12 which is about USD 24 a day.
However, like all cryptocurrencies, it is important to bear in mind that the price of SLP can fluctuate wildly. With it hitting a peak of USD 0.36 in May 2021 before crashing down. This is an important consideration as the amount earned each month would vary widely.
- Breeding and selling Axies
Players can breed and sell Axies within the game.
Axie Infinity started gaining traction as Axies were being sold for insane prices, the most expensive one was sold for US$131,970 back in November 2020.
How does Axie Infinity work?
Playing Axie Infinity can get quite complicated, but it is easy to get started and get the basic mechanics right.
To begin, you first need to buy a starter team of 3 Axies. Axies are your virtual monsters in the game that you use to battle with to earn SLPs, the higher your level, the more rewards you can earn!
Every Axie has:
- A base class
- Stat attribute
- Body parts
- Abilities
1) Base class
There are 9 unique Axie classes: Plant, Reptile, Dusk, Beast, Bug, Mech, Aqua, Bird, Dawn.
Each class is either stronger, weaker, or neutral to another class, just like in Pokémon how fire is weak against water. This is important to note as it can give you an advantage during battles.
2) Stat attribute
Axies have four stat attributes, which are Health, Speed, Skill and Moral. A total of 140 stat points is spread across the attributes but the percentages vary according to its base class.
- Health = Determines how much damage it can sustain before it is unable to continue
- Speed = Decides which Axie goes first
- Skill = Enhances damage when used with combos
- Moral = Increase your percentage to land additional damage and special statuses
A total of 140 stat points is spread across the attributes, but the percentages vary according to their base class.
3) Body Parts
Body parts are what make your Axie unique, there are 6 different parts that make an Axie: Horns, Mouth, Eyes, Back, Tail and Ears. Like stat attributes, each part gives additional bonuses depending on its base class.
4) Abilities
There is a total of 132 abilities/cards in the game each with a different purpose such as dealing damage or protecting against attacks. Combining these abilities allows you to create combos that can help you win the battle faster.
How to get started in Axie Infinity?
Getting started is very simple, all you need is a computer or a phone with an internet connection.
Here is an Axie Infinity official guide to getting started or you can also follow this very detailed step by step guide.
What to watch out for as a beginner in Axie Infinity?
Playing Axie Infinity sure looks like an easy way to make quick cash but is there anything that you should watch out for?
The first downside of Axie Infinity that you will come across is the upfront costs of purchasing your first 3 Axies before you can start playing. To create the cheapest starting team of 3, you would need an upfront cost of 0.05ETH which at the time of writing is about USD 150 for each Axie.
However, if you would like to create a decent starting team, be prepared to pay an average of USD 1000 for a good Axie starter team.
If the starting amount scares you, fret not as you can “rent” Axie via the scholarship program. However, do be aware that part of your earnings will go to the lender as a borrowing fee.
Like any multiplayer game, the liveness and activeness of the platform are determined by the number of players. As new and more interesting games start launching, it is paramount for Axie Infinity to continue innovating to ensure that players remain hooked on the platform.
How Axies are valued is still a mystery to many as there is no clear standard on how to determine its price, it could just be the hype that is commanding such a high price. Coupled with new Axies being bred every day, this could mean that rare Axies being trading for eye-popping prices today, could be worthless in the future.
Conclusion
Playing Axie Infinity sure looks like an easy way to make quick cash. Backed by well-known successful investors and a strong growing community, Axie Infinity seems to still be at the start of its launch. It will be interesting to see how the play-to-earn movements grow and integrate into our lives.
Are you tempted to quit your job to play and earn a full-time, or do you see this as a potential side income? Perhaps a great idea would be to introduce this game to your kids or nephews. Let me know your thoughts by commenting below!
Disclaimer:
This is not financial advice. Any action you take is solely your own responsibility. Cryptocurrencies are extremely volatile, only invest with what you can afford to lose.