What is Axie Infinity?

Axie Infinity is a Pokémon-inspired universe where anyone can earn tokens through skilled gameplay
and contributions to the ecosystem. Players can battle, collect, breed, and build a land-based kingdom
for their pets.

Although Axie is still in early access, Axie is ranked the #1 Ethereum game by daily, weekly, and monthly
active users. It has generated over 90,000+ ETH almost $90 million in revenue in the past 30 days
while the other top ten apps on Token Terminal's list totaled around $41 million combined.
Revenue comes from in-game purchases, such as land. Axie takes a 4.25% fee for buying and selling
Axie NFTs and charges fees for breeding.

Traditional gaming (Mobile Legends, CS GO, Ragnarok, etc.) has been successful in crafting immersive
experiences. However, these experiences are often transient, and are destroyed by the problems of
centralization. Players have their items and achievements locked onto servers and databases that can be
shut down at the whim of the game maker. Axie Infinity uses Ethereum Blockchain to ensure open,
transparent ownership and a liquid, secure marketplace. Players have complete ownership of their Axies
and will be able to trade and sell them smoothly and securely.

The key difference between Axie and a traditional game is that Blockchain economic design is used to
reward our players for their contributions to the ecosystem. This new model of gaming has been dubbed
"Play to Earn". Axie has attracted thousands of players from developing countries in the pursuit of a
new income stream during the Covid-19 pandemic. Play to Earn is a relatively new form of gaming, but
the concept is catching on.

Axie Population & Long-term Sustainability

1. Population Control

With many people playing the game, there is the risk of an oversupply of Axies. If this happens, supply
will outstrip demand and prices will adjust downwards; this, in turn, will lower exchange rates for SLPs
and AXS. 

But those things have been addressed by the developers in their game road map. Somewhere down the
road, people will be incentivized to spend their Axies and remove them from circulation, solving the
issue of overpopulation and oversupply in their marketplace. 

There are also plans to add additional utilities to Axies, making them do more meaningful things than
just battle non-stop to earn those coins.

2. SLP Hoarding

Stocks and crypto traders and experts may argue that the in-game cryptocurrency could easily be
manipulated. However, the game developers have taken steps to mitigate this risk by ensuring that
players are forced to hold on to their SLPs for 15 days before they can sell them to exchanges. Once it’s
back to circulation, it’s returned to the players as a reward. 
Breeders currently drive the demand for more SLPs and AXS, which is one of the reasons why their
prices are gradually increasing. As breeders spend currency to make more Axies, the game keeps players
from dumping their tokens with its 15 days claim policy in place.

Key Points

 Axie is a new type of game that rewards players for the time and effort they spend both playing
the game and growing the ecosystem.
 Axie has a 100% player-owned, real money economy. Rather than selling game items or copies,
the developers of the game focus on growing the player to player economy and take small fees
to monetize. Axies are created by players using in-game resources (SLP & AXS) and sold to
new/other players. You can think of Axie as a nation with a real economy. The holders of the
AXS token are the government that receives tax revenues. The inventors/builders of the game,
Sky Mavis, hold ~20% of all AXS tokens.
 Game resources and items are tokenized, meaning they can be sold to anyone, anywhere on
open peer-to-peer markets.
 It has a whitepaper with a clearly defined roadmap and goals.
 It's one of the top gaming cryptos by market capitalization.
 Billionaire and crypto enthusiast Mark Cuban joined Axie's latest funding round in which it raised
$7.5 million.
 Over 1M+ daily active players. about 40% of whom are in the Philippines, with Venezuela and
the US the next two biggest markets.

AXS Price and Market Stats

 SLP Price and Market Stats

How can we earn money by playing the game?

1. SLP farming or mining

The game guarantees 75 SLPs a day just by accomplishing some tasks. Players have a 50 SLP cap per day
for the adventure mode and a 25 SLP reward for completing all the daily quests. This alone could already
score you ₱750 based on the SLP rate which is ₱10 upon writing. 

This concept is similar to bitcoin mining where it utilizes the resources of your GPU and SSD respectively.
Your rig (Computer) is the Axies instead of GPUs and the type of Axie you buy will determine how fast
you can power through the game and mine SLPs. Axie rewards its players with SLPs through the sheer
grind of playing the game.

2. Breed Axies

Breeding Axies require mating two unrelated Axies. While you may need to spend some SLPs and AXS to
do this, you will be able to create a new Axie at a considerably lower cost than buying one. You can then
sell the Axie in the marketplace or create a team for Axie scholarship program.
3. Flipping Axies

Buy Axies at a lower cost and sell them when the price goes up.

Another aspect that makes Axie unique is being NFTs. With the many variables that can affect the rarity
of a certain Axie, some Axies can fetch really high prices (See Image below). Along with a growing player
base and a market that is more competitive than ever, the Axie economy in the Philippines is unique as
it completely reimagined Pokémon as an actual economy.

When converted, this particular Axie is valued at over Php 56.8 million as of Aug 13, 2021

Business Plan (Breeding and Scholarship Program)

1. Breeding Program
a. Breeding Costs - 2 AXS and a certain amount of Smooth Love Potions (SLP), depending on
the breed count of the Axies. The breed count is how many times the Axie has already
produced offspring. The higher the breed count, the more SLP you will need to breed again.

This means that if you have an Axie with a breed count of 2/7 and an Axie with a breed
count of 3/7, then the total costs of breeding are 2 AXS and 1200 SLP.
b. Genes – Genes is the vital key in Axie breeding, each gene has a chance to be passed down
to offspring. Every Axie has 4 out of over 130 different abilities. Which means that there are
plenty of different Axies, but some of them perform better than others. As of August 13th,
the cheapest Virgin Axie (0 breed) with a good dominant (D), recessive (R1), and minor
recessive gene (R2). costs around .35 ETH (Php 54K)

c. Breeding methods - Breeding loops are strategies to breed for infinite generations starting
with only 3 or 4 Axies. There are two main approaches: ABC looping (3 Axie) and ABCD
looping (4 Axie), as well as a way to transition from ABC -> ABCD looping.
Sample Investment Computation for ABC Infinite Loop Breeding Method
2. Scholarship Program