- AXS brings down profitability as token slides under $29.
- SLP can be used to trade Axies, but not for gas fees on Ronin network.
- Land awards are skewed to early investors and “whale” buyers of Genesis plots.
The Ronin network created a token sink to burn Smooth Love Potion (SLP). The mechanism suggests tournament organizers may ask an SLP fee and then burn the tokens. The token sink is open to anyone that connects to it.
The actual economics of the burning mechanism are up to tournament organizers and players, who will estimate if the prizes are worth it. So far, Axie and Sky Mavis have not proposed a significant mechanism to burn SLP. Breeding Axies, which created the most demand for SLP, stalled months ago after an oversupply of teams.
Sky Mavis Still Working on P2E Balance Solutions
SLP is also still not used for gas fees on the Ronin network. Instead, players have a limited free transaction count, with the rest paid in RON tokens. SLP can be locked as a liquidity token, but cannot pay transaction fees. However, the Axie marketplace has evolved to multi-asset trading and accepts SLP directly.
The Axies game was a success for Sky Mavis, but keeps disappointing players with low weekly gains. Now, various mechanisms of staking and burning Axies and SLP attempt to improve the potential for more predictable gains before Origin completes all updates and implements P2E.
The recently announced land staking with AXS rewards may be close to going live, at least coming from the smart contract developer. Buyers of Genesis land and owners of other Lunacia biome plots will receive a heavily skewed AXS for holding their investment.
Potential players are noting that the Lunacia types of land plots favor big early investors and may be unfair to other buyers. Additionally, the price of AXS keeps sliding and is down to $28.30.
SLP moved down to $0.011, sinking farther from its previous level of stability around $0.02. RON is down to $0.76, also with a bearish outlook.
The RON-ETH bridge is still closed for rebuilding the smart contracts and ensuring the validators cannot be attacked.
Most of the funds have been concealed and laundered, with only $5.8M intercepted by exchanges.