The Ronin Network RON token, tied to the ecosystem of Axie Infinity, is getting closer to adoption. RON is expected to boost AXS price predictions, as well as mop up excess Smooth Love Potion (SLP).
There is still no set date for the launch of RON, but activity is picking up and early trading may be starting. RON is expected to go through price discovery and generate significant value.
RON is still in the farming stage, where both AXS and SLP are accepted. To farm RON, both tokens are needed, as well as Ethereum (ETH). The ETH is wrapped on the Ronin network and the decentralized pairs use algorithmic price setting for AXS/WETH and SLP/WETH.
RON will also be used in the future for upcoming play to earn games on the network, as well as previously free game activities.
Axie Infinity Reboots Tokenomics
The Axie Infinity game is finding new ways to solve the sinking value of SLP. Recently, SLP unraveled once again, erasing about 30% of its value to slide to $0.02 from a relatively stable drift around $0.03.
RON farming is still insufficient to boost SLP positions, and the token now relies on buying from Axie-afiliated projects and scholarship organizers to mop up the excess supply.
Axie has announced it will try to balance the burn and new SLP creation, to avoid oversupply in the future. The game will also add land-based play to earn mechanisms, while significantly altering the ratios of SLP issuance and burns through in-game usage.
Despite the popularity of SLP, the team could not precisely predict the inflow and outflow of players.
AXS Crashes on Market Weakness
On Thursday, AXS showed its price range close to $100 was kept up mostly by the overall market stability and sideways trading.
AXS crashed to $76.33 in a few hours, dragged down by the Bitcoin (BTC) slide under $43,000 and fears of a bear market. Most play to earn assets slid by more than 12% and still face the challenge of regaining positions.