Axie Infinity token AXS gains 40% after taking steps to avoid 'permanent economic collapse'

cointelegraph.com:

The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round.

In detail, the play-to-earn startup expanded its number of leaderboard slots to 300,000 and boosted the amount of AXS rewards to 117,676 from the earlier 3,000 for the next season.

"This will supercharge the competitive Axie scene and create more demand for quality Axie teams in the ecosystem," Axie Infinity explained, adding that their move would create a $6 million worth of prize pool for Season 20.

AXS serves as a governance token for the Axie Infinity protocol. Additionally, it acts as a legal tender to purchase in-game nonfungible tokens (NFTs) — more or less unique digital pets called "Axies" — from the Axie marketplace. Finally, players also use AXS to breed new Axies using the existing ones.

But Axie Infinity uses a dual-token structure. The other crypto, Smooth Love Potions (SLP), was awarded to players for completing daily quests and clearing levels in the adventure mode. Additionally, players received SLP rewards through area combating in the Axie Infinity game.

Axie Infinity also eliminated the daily quest and the adventure mode, meaning gamers would now earn SLP tokens only through area combat. The decision expects to reduce the SLP token daily supply by 56%.

That is vital as players burn SLPs to enable old Axies to breed new ones. Of late, the Axie Infinity team created more SLP to reward players than burned through breeding. Unfortunately, that led to a higher SLP inflation, prompting its per token rate to crash from its summer 2021 highs of $0.40 to $0.008 on Feb.