- SLP can be burned for private events or tournaments on the Ronin network.
- SLP sinks to $0.010, gameplay for Axie Infinity Season 21 with very low profitability.
- Axie breeding slows down, freezing demand for SLP fees.
The Axie community has taken up the newly introduced burning mechanism for Smooth Love Potion (SLP). After a long period of excessive SLP production, the new use case is to pay an SLP fee for special events organized by local communities, as well as for tournaments.
For now, SLP is not used to pay for Ronin network fees, but may pay for Axies on the marketplace. SLP is down to $0.010, sliding from a previous stability tier around $0.020. The asset reflects the pressures from the new Season 21 for Axie Infinity. The supply of SLP has bloated to 5.83B tokens with no supply limits.
SLP always had more tokens minted than burned. Since the start of 2022, the creation of new tokens slowed down, but burn also fell to almost nothing. The chief reason is loss of interest in breeding Axies, as there is also an oversupply of characters. Now, the hope is in ad-hoc burns and fees, as well as mini-games and competitions to respark interest in the game.
AXS also continued to slide, though it remains a more significant source of earnings. AXS fell to $28.28. RON, the native token of the Ronin network, extended its slide to $0.67.
How Axie Infinity Will Survive
The biggest problem for Axie Infinity are the refusals to play at there levels of SLP. There are also calls that Axie Infinity is dead and Origin may start to repair the balance. The Sky Mavis team tries to keep up the value of the project, recently opening grants for real-life meetups.
In the future, some users may see returns from the game through land staking. But even that source of income may be compromised if AXS continues to slide. Axie land is a relatively expensive asset and only early buyers may hope for returns.
At the same time, the free-to-play version remains attractive and the Axie platform hopes to become a hub for mini-games and sub-projects that will renew the value and start with fresh P2E models.