Talking about GameFi as a niche is almost impossible without mentioning Axie Infinity. This project drove the adoption of blockchain games by making the play-to-earn concept profitable. It focused on Asian countries to drive participation and reward players for their passion. Soon enough, everyone noticed they could make serious money by engaging in this game.
It was not long before GameFi Guilds became interested in this project. Even regular individuals started offering scholarships to players. While this helped Axie build a community, it also came with its problem. As outlined in a recent op-ed, the focus shifted from reward for your passion to “come and make money”. Instead of reinvesting part of their earnings into the ecosystem, they took everything and tried to pay for their scholarships.
This crashed the price of Smooth Love Potion ($SLP) and caused that of Axie Infinity Shard to skyrocket. This created an imbalanced ecosystem, and the team had to act. They adjusted the reward mechanism and breeding cost while introducing SLP burning to prevent an imminent project collapse.
However, many people who were in for monetary benefits started claiming that the game was no longer profitable for players. While this is far from the truth, a drop in the price of $AXS from its all-time high, last year’s market crash and this current crypto winter haven’t helped to debunk the lies. That said, are gamers no longer earning from this game?
Is Playing Axie Infinity Still Profitable?
To answer the question, playing Axie Infinity is very much a profitable exercise. Only those who do not understand the entire ecosystem will claim that this project no longer rewards gamers. Contrary to popular opinion, the team is rewarding the community even more. Instead of just gameplay, Sky Mavis is also compensating creators for their contribution.
For sound clarity, here are some ways that Axie Infinity has rewarded Lunacians since overcoming the initial setback:
- Axie Infinity The Premier: To enable more immersive gameplay, Axie Infinity is unveiling The Premier. This is a series of contests that anyone who completes assigned missions will win Moon Shards, Moon Dusts, Ancient Moonstones & Choice Boxes as rewards.
- Axieween Challenges: While this focuses more on creative display, there is also a category for “The Scariest Axie”. This group is strictly for Axie holders, and it rewards 10 players with 1 Aave Phantom Alter each.
- Axie eSports Grant: This funding exercise gives tournament organizers the financial support they need to engineer different forms of competition. There have been three episodes of this event, which cuts across three contest tiers. With some representative receives as much as $1,000,000 for their prize pool.
- Axiecon Tournament: Axie Infinity took blockchain gaming a notch higher by introducing a series of events where players could interact and network. It began with virtual qualifiers before concluding with a physical final. The prize pool of this tournament was a whooping 500,000 US dollar worth of $AXS.
- Axie Land Staking: Through this staking initiative, Axie Infinity rewarded landowners with its underlying utility token for locking their virtual plots.
As mentioned above, the price of Axie Infinity Shards crashed. However, that is not the primary reason why people propagated the idea that playing this game is no longer profitable. Sky Mavis altering their reward mechanism prompted the rumors that this project is no longer rewarding.
Looking at the initiatives stated above, it is easy to see why. Learning from their lessons, the team decided only to reward active players who ensured the sustenance of the ecosystem. For example, the land staking initiative discouraged players from selling off their virtual plots. Axie Infinity also diversified the different forms of earning. This is obvious through the Axie eSports Grant, Creator Competitions and Support Programs.
Back to the subject of discussion, it is evident that Axie Infinity is still very profitable to players. However, users themselves must be committed to the game. It is not the case to make money off the game and move on.