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GameLook reported in August that a game called “Axie Infinity” had changed many people’s minds about the game and the NFT: it had more than 1 million daily users and revenue of more than $196 million in July.
Perhaps even more surprisingly, Axie Infinity has managed to break down the boundaries between virtual and reality, providing a decent monthly income for many people in developing countries, even before everyone knows exactly what the fire’s Metaverse is.
Axie Infinity seems strange to readers who don’t know it. So, what exactly is this game? What is the potential? Not long ago, NotBoring, a well-known overseas blogger, wrote an in-depth article entitled “Unlimited Revenue, Infinite Possibilities”, detailing the origins of Axie, the Play-to-earn model, and Metaverse.
Here’s the full story compiled by GameLook:
At an internet café in the Philippine city of Cavana, Howard, a 22-year-old, says the game he’s playing, while cute, requires a lot of strategy. Called Axie Infinity, the game is a blockchain game that looks like Pokemon Go, where people can buy pets (Axie) and use them as NFT for feeding, fighting and trading. These pets look cute and approachable:
However, Howard’s review of the game is a description of Axie Infinity’s business and athleticism. It’s really cute, it’s a game with blockchain elements and it’s fun, but it hides a lot of things beneath the cute exterior.
Jeff “Jiho” Zirlin, co-founder and head of growth at Axie Infinity, said of the idea behind the game:
“The idea is to introduce something new and a little scary (encryption) through something interesting, familiar and nostalgic. Then, use property rights and economic freedom to bring about really special experiences. ”
Axie’s cute appearance obscures a “crazy” business, and some try to counter-intuitively compare it to the Web 3 ecosystem known for its modular combinations. Beyond the business side, it has a bold plan to reshape economic policy and local governance by demonstrating the possibility of people working in Metaverse. In the white paper, Sky Mavis, the Axie developer, makes it clear that “you can think of Axie as a country with a real economic system.” ”
This is the macro plan. For now, most of the focus is on the game’s eye-opening growth rate, with Axie Infinity increasing subscribers and revenue at an incredible rate, so take a look at its monthly revenue changes:
Revenue in April was $670,000; $3 million in May; $12.2 million in June; $79 million in 18 days in July; and $196 million in July, according to Axie World.
The Axie agreement states that players will be charged a 4.25 per cent fee for buying and selling Axie NFT in their markets, as well as new tokens AXie Infinity Shards (AXS) and SMOth Love Potion (SLP) by feeding Axie. AXS and SLP are denominated in Ether, which has fallen by half since May, but even so, Axie Infinity’s revenue in dollar terms has exploded.
If these are annual revenue growth figures for any business, investors will be salivating over them. 200 times revenue growth in three years is almost unheard of, how exaggerated should 200 times growth in three months be?
Delphi expects Axie’s revenue to exceed $1.1 billion by the end of 2021, most of which will come from the NFT market’s draw fees and the demand for thousands of new players each month. The game currently has nearly a million players, nearly 60 percent of whom are based in the Philippines.
But while the numbers are enviable, they are not actually the fastest growing in the gaming industry. Few industries are growing faster, but most declines are just as fast.
What makes Axie Infinity unique is that rapid growth is only the first step in a larger plan that includes vertical integration, aggregation, decentralization, and world construction.
Even in the first round of the master plan (the game is still in Alpha Testing), Axie’s rapid growth as a blockchain-based game has created a new model at the point of integration of work and play: Play-to-Earn.
In the Philippines and Vietnam, a large number of people quit their jobs and spend a few hours a day in Axie Infinity to lead a better life. They earn Smooth Love Potion (SLP) by playing games, which they can use in exchange for cash to pay for food, health care and all the expenses they have to live on, before some earned $5 a day, now $20 a day.
Axie has proven that there are many important things about the long-term success of encryption:
1) NFT is developing well, and their success does not require high-priced art sales. On the contrary, we see the true potential of NFT through Axie Infinity.
2) Many people who are not cold about encryption technology, through a game “on the car”.
3) Encryption can create new economic opportunities for all types of people around the world, not just Big R, DiFi Dengens, and Bitcoin maximizers, bringing more levels of play experience while capturing economic value.
4) The network effects of encryption technology can create incredible rapid growth with moats.
The only thing about encryption right now is that it has no real value or application, but Axie makes people have to rethink what real value is. In Axe’s case, the value comes from providing players with ways, revenue, and opportunities directly. A traditional game can spend millions of dollars on marketing and then retain most of its profits; Axie doesn’t spend any marketing money, but gives players the bulk of the value they create, which can lead to more sticky games and more expansion opportunities.
This is only the first phase of it, it wants to reshape the way it works and create the most valuable IP ever made, everything for the player to have. My favorite Web3 project is Chris Dixon’s idea that the next big event might look like a toy, and Axie is a lot like that.
Over the past few weeks, many people may have heard about the game Axie Infinity, and seen a lot of news in cryptocurrency-related sources. However, many people may not have heard the word “Axie”, but it will soon be known to many more, and we’ll take a closer look at what Axee is today, including: the origins of Axie; the game business model “modern history” ;P lay-to-Earn; Axie numbers: unlimited income; vertical integration of the virtual world; the decentivization of the Axie universe, and infinite possibilities.
In November 2017, CryptoKitties became the first digital asset to use the now ubiquitous ERC721 standard as the NFT. Less than a month later, in Vietnam, Trung Thanh Nguyen, founder and CEO of Sky Mavis, came up with the idea of Axie Infinity: What would it be like to combine Pokemon play with NFT and cloud cats?
“Axie Infinity” looks like “a Pokemon universe that allows everyone to earn tokens through playful tricks and contribute to the ecosystem.” Players can fight, collect, nurture and build a pet kingdom. “When Trung wanted to export the idea and play of bag monsters and cloud cats, it made two key differences:
Unlike holding Pokemon cards, players buy Axie as NFT; players have cards or NFT that are not just for appreciation, they can earn ERC20 tokens for local currency and make a living by playing games.
Trung has been building the game since December 2017. By January 2018, the Ethereum price had peaked at $1,300, and he recruited Masamune as artistic director and game planner. Meanwhile, Trung continued to play CryptoKitties, where he met two co-founders and Crypto Kitties fans: Jiho joined the game’s growth in March; Aleksander Leonard Larsen joined the company as a COO in May; and Andy Ho joined the CTO in July, eventually forming a five-person start-up team.
In February 2018, the team launched origin Axie pre-sale (selling the first Axe characters as NFT) and raised 900 ethers, when Ether coins were just beginning to fall back from their peak. As Ether prices fall, they are in:
The owner-owned NFT market, which allows collectors to trade, was launched in March, feeding play was released in May to allow players to combine Axie to acquire new pets, players can fight with Axie in October, and in January 2019 they raised 3,200 ethers through land sales in Lunacia, an open world owned, operated and controlled by players.
One idea that began at the height of the bull market, in a deep and depressing bear market known as the “encrypted winter”, became a willing effort. When Jiho was asked what had led to Axie’s recent growth, he said it all started “when no one cares, it builds up during a bear market.” ”
What seemed cursed at first turned out to be an advantage. It allows the Axe team to carefully build and upgrade the product, and it has attracted a small number of core fans in relative obscurity. It’s important that games and new encryption projects face the challenge of quickly attracting large amounts of heat and fans, making big revenue, and then disappearing at the same rate, Jiho points to the paradox of building large communities:
Communities need to be small at first to work, but the reality is often very big from the start. That’s why Axie is hard to replicate, and if you build a competition now, you can attract a lot of people who want to find the next Axie, rather than people who are really interested in moving the game forward.
From a very young age, Axie has become a behemoth. By early July, it had achieved 600,000 DAUs. On Thescord servers, the community numbers more than 540,000, with a new user joining almost every five seconds.
Axie’s growth is impressive, but its user growth is even more impressive than traditional games. The Axie team has released a “newbies’ guide” that lets people “learn how to play” through six unfamiliar steps.
To start the game you need to get Ether, sign up for a MetaMask wallet, transfer Ether, download another wallet (Axie’s own Ronin wallet), transfer it again with Taico, get NFT at Axie’s own NFT market, log in with MetaMask, and finally download the app on a PC or mobile platform. 85% of players are from Android.
Then join the community and you need to download Discord, create an account, enter the welcome interface, verify your mobile phone number, the same community agreement, and then enter “? Join Trainers” entry into the community’s main interface, sometimes the process of joining the community is not smooth and requires multiple attempts.
Then there’s the cost. To start the game, you need 3 Axes. You can buy it on the market, the cheapest of which is 0.1 Ether, or $195.
In fact, it takes a long time for this process to come down. Even Jiho admits that it’s harder to start playing Axie Infinity. But even with these obstacles, Axie is still growing at a crazy rate, so there must be something magical beyond the novb experience.
MZ CEO Gabriel Leydon has made a counterintuitive observation that investors should look for opportunities that are broken but still growing:
NFT is as important as the App Store. That means everything was broken at the start of the App Store, when it took three months for an app to pass a review, which was crazy and a nightmare, but it was growing very fast. That’s what you want, what you want is a completely broken environment, like a series of spaces that are still in the innovation phase, and encryption is obviously one of them.
In Axe’s case, innovation is the Play-to-earn mode, where the opportunity is to make a living in Metaverse by playing games. To understand why it’s so innovative, we need to understand how today’s games make money.
“Modern History” of The Game Business Model
Axie Infinity is not the fastest growing or highest-paid game industry. To understand why Axie’s growth is so special, we need to look at other game business models first.
In June, Japan’s “Two Kingdoms: Interlaced World” set a record for growth, with $100 million in revenue in 11 days and only five market launches.
Like previous games with the fastest $100 million in revenue, such as Pokemon Go, which earned nearly $10 billion, and Epic Games’ fortress night, “Two Kingdoms” is a free game.
Most free games allow players to experience the entire game for free and profit from selling virtual items such as skin and expressions, a free model that has been very successful in the gaming industry. In 2020, “Night of the Fortress” will earn $5.1 billion, and it’s worth noting that all the props available in the game are decorative. Buying skin won’t give you better attributes in battle, it won’t make your character stronger, it’ll only allow players to show off or show off their unique looks in front of people. With more than 800,000 members on Thescord server, Fortress Nights has a microeconomic system centrally managed by Epic Games that can reap huge benefits from the player base.
Two Kingdoms and Pokemon Go are also free modes, but some commentators say the cash-out design for both games is too “sloe” and should be called Pay-to-win mode.
In Pay-to-win games, players can pay for props or skills that give them an edge in the game, just as in many MMO games, where players get stuck in their progress if they don’t pay, and the revenue from the game comes mainly from a handful of big R players.
Even the seemingly young Candy Legends can cost players a lot of money to buy their lives. When the game first broke, there was a lot of news online that their children were overdrawn on credit cards because of Candy Legends. In 2014, Apple refunded $32 million to activist parents for spending on games without permission.
Roblox is also a free game for children, but has innovated in many ways. First, unlike binding credit cards to let kids splurge, the game allows parents to buy a certain amount of in-game currency Robux, and second, unlike creating everything, Roblox creates a platform where all developers and planning can make games and things and sell them to users in exchange for Robux. Roblox’s revenue was $387 million in the first quarter of 2021, but $118 million, or 31 percent, of that revenue was spent on developer exchange fees.
According to the company, 27 percent of all revenue generated through Robux in the game goes to developers, 25 percent to the App Store, 12 percent to input and support platform development, and only 27 percent to Robrox himself.
This type of game is a big step forward, and unlike traditional games, which pay developers, users can also earn revenue by driving the ecosystem. In Roblox, core players can make a living by playing games, whereas before that, players could only earn money by participating in eSports or “brushing money”.
In a 2007 New York Times article, a reporter revealed that World of Warcraft included Chinese workers spending 12 hours a day brushing gold coins and other digital resources, earning an average of 0.3 cents an hour, and that their bosses could get $3 by selling them to online trading platforms, which could sell gold coins to Players in Europe and the United States for up to $20. Gold-swiping is banned in many games, but these bans won’t stop it if there are ways to make money for players around the world.
Let’s go back to Axie Infinity.
Axie has adopted a new model, implementing the Play-to-earn mode with blockchain technology. Unlike traditional free game developers selling to players or developers interfering with deals, Axie Infinity has adopted a way of letting players trade directly themselves.
According to Axe, Play-to-earn is a new model that “rewards players for their efforts to grow the game and ecosystem”: its athletics are entirely owned by players, with developers charging very little in the process of trading players with players.
Axie in the game is also created by players using in-game resources (SLP and AXS) and can also be sold to other players. AXS token owners are like tax-snorting regulators, with game resources and items tokenized, meaning they can be sold to anyone anywhere.
Strictly speaking, Axie Infinity is not a free game. You first need to buy Ether to get three Axes, but unlike other game characters that belong to developers, players get ownership after buying it, and you can decide on future development or accomplish other tasks to earn real income. If you don’t want to keep playing, just sell Axie, AXS and SLP tokens.
When new players enter, they don’t buy Axie from Sky Mavis or Axie Infinity officials, but directly from players. Jiho points out that “players can sell tickets to the universe to others” and that the Axie agreement draws a 4.25 percent commission when market transactions occur or when a new Axe is raised.
Unlike the traditional model, in Axe’s Play-to-earn model, 95% of revenue goes to players. “The first principle is that in an attention economy, people who turn their attention to us should be rewarded,” Jiho said. “But why?”
Playing games is an important job, and you need a lot of people to experience it at the same time to make it more fun. A PvP game is fun because you can beat others with technology. Play-to-earn makes Axie more interesting because it brings in more users, so it makes sense to give most of your revenue to players.
About 5 per cent of Axie’s revenue is invested in Community Treasury, which currently has a pool of 46,000 Ethers ($95m) controlled by token holders, including but not limited to developer Sky Mavis, which owns only 20 per cent of the token AXS.
Axie is more than just a game, it also uses its own economic system to create a virtual country, but it all starts with a game. Here’s how the game works:
In Axie Infinity, players collect, nurture, and eventually fight with digital pets called Axe. The core content of the game is fighting, including PvP and PvE two ways.
Each Axe has different attributes, health values, mental values, skills, and speed, which gives them strengths and weaknesses in battle.
Complicating matters, each Axee’s attributes depend on his occupation, such as beasts, reptiles, aquatic animals, insects, plants, birds, moons, nuts, stars, and body parts such as eyes, ears, horns, mouth, back and tail. Some careers are better at fighting, others can take on more damage. Axie is a three-group battle, all of which are generated in combination with Tank and Attacker, and need to be optimized for other people’s Axe teams.
During the battle, the two sides attack each other with Axie cards on a round-by-round basis. Card levels can have different effects, such as bird card attacks on the beast Axie, which can cause 15% additional damage, with each occupation associated with other occupations:
As Howard began to say, it’s a strategy game, and winning depends more on skill than luck. Players can also get SLP tokens via PvP, PvE, and daily tasks that can be used to feed the new Axe, so this is called Play-to-earn mode.
Head PvP players can get up to 600 SLP per day, but for the average player, the upper limit is around 200, with a discounted cash price of $52. In the United States, this income is not high, but income of more than $1,500 a month is already a large income that can improve living standards for many developing countries. For these LPPs, players can do a lot of things:
Raise the new Axie. Axie in “Axie Infinity” doesn’t come out of thin air. To meet the needs of new players for Axie, older players can raise new Axie from the existing Axie, each Axie can raise up to 7 times, consuming 4 AXS plus a continuous increase in the number of SLP. The cost of a “Virgin Axie” is 4 AXS plus 150 SLP, which is now $109, which is obviously a profitable deal considering the minimum price per Axe is $195.
venture. SLP holders may also want to hoard up and sell at high prices, such as a 21.8-fold increase in the price of SLP over the past year.
Exchange cash. Both AXS and SLP can now trade on most decentralized trading platforms (DEX, such as Uniswap). In the future, they could even trade on Axe’s own DEX platform, where many players could earn SLP and then switch to cash for schedule expenses.
The last use led to an explosion in Axie user numbers. During the COVID outbreak, workers in many developing countries lost their jobs, hoping to make money to support their families through “Axie Infinity” and even foreign media made a promotional video for the phenomenon. In a small town in the Philippines, Axie spread rapidly, and even 75-year-olds were playing games, earning $5-6 a day to pay for medical care.
One might ask, how can a 75-year-old afford Axie? Don’t they cost as much as $195?
This is perhaps the most amazing part of the Axe economic system, where there are several scholarship programs around the world that offer players the Axie team, which rents Axie to players and is paid for sharing SLP deals. Local projects in the city of Avana, for example, and Yeeld Guild Games around the world do similar things, according to the latter, where a large number of people send them resumes every day.
Due to the high demand, Yield Guild also set up the Sponsor-a-Scholar program, which allows more players to enter the game, which would have been almost inconceivable if it had been a year ago.
In a world of rapid online, blockchain and economic search for markets, the emergence of Axie Infinity is more of a microcosm of the future than a flash in the pan, as people start building businesses in Metaverse wherever they live.
From this point of view, Metaverse has reached and is well distributed.
In addition to scholarship programs, sponsors are also supporting players, offering their Play-to-earn missions. The chance to make a living playing the game is enough to attract thousands of players, 60 percent of whom are from the Philippines who have completed the Axie Novice experience. Compared with the Philippines’ population of 111 million, 600,000 players are only a small fraction, not to mention the world’s largest user base.
Even before the last four months of the boom, the Axie model had attracted a lot of Ethereum attention, which had devastated Axie, so Sky Mavis decided to create its own side chain: Ronin. It took the team a year to build Ronin, and in early May this year it officially connected Axie Infinity to Ronin.
Today, most transactions in the Axie universe take place within Ronin and connect Ethereum only when necessary, and Axie, land and goods cannot be traded through Ethereum except for SLP and AXS.
Axie number: Unlimited revenue
We’re talking about the game, so let’s make a calculation: starting with Axie’s release of Ronin, we can see the numbers mentioned earlier, and at this rate of growth, Axe’s revenue would be unthinkable, but even so, the game’s potential is underestimated.
This is incredible for any company. Robrox, for example, which has a market capitalisation of $43 billion, earned $144 million in April, its seventh year in operation.
At this pace, Axie is expected to generate $150 million in monthly revenue through a 4.25 percent draw, dwarfing the entire blockchain, which is already valued at more than $1.1 billion with the launch of the AXS token in November 2020.
Despite the rapid growth, Delphi Digital revealed that AXS’s trading P/E is still only 7.7 times, which is a fairly undervalued valuation compared with roblox, which is not yet profitable, or TakeTwo, the publisher of GTA 5, at 33.5 times earnings.
Axie doesn’t just have a “money scene” but also a passion for players. For example, 48 percent of players said they played for the economy, but 37 percent said they played for the community, which has 550,000 users on Axe’s Diskard server, compared with 800,000 for Fortress Nights.
Numbers can be faked, but community and product enthusiasm can’t. In July, Axie’s user base was so high that the server went down several times, and the company even sent a message specifically to Discord complaining about the problem. Perhaps most amazing was the community’s response, with many choosing to temporarily shut down Discord in order for the server to run smoothly.
Vertical integration in the virtual world
Jiho, “If we can build a community of millions of familiar blockchain users by introducing new players, we can create a behemoth that can eat other products.” ”
Sky Mavis’s overall strategy is an unprecedented combination of vertical integration and decentralization.
Part of the charm of Web3 is that you can piece together existing dApps like protocols, smart contracts, blockchain, and Lego, called modular composability, which means a company can build more complex, eye-opening products faster with fewer resources.
Sky Mavis’s strategy for Axie Infinity is not. When you want to create something really complex, everything can only be made internally, says Jiho. Tesla built its own batteries, software and components, and SpaceX built a complete supply chain from the start, from rocket engines to electronic components. Sky Mavis is doing something similar.
The first is IP, which is Axie. Sky Mavis created Origin Axie and mascots and still exists in their wallets. This was followed by the game, which was developed in-house by Sky Mavis. This is followed by the creation of its own NFT trading market in early 2018.
Axie is also building its own world, Lunacia, and will auction off the lot from 2019, before merging Axie with the land market. In the future, the company also plans to introduce land-related games, opening up more ways for players to make money.
Sky Mavis also launched its own blockchain currency, AXS, and later created its own sidechain Ronin.
So, what’s next?
The advantage of vertical integration is that it delivers enough modular components to reduce Axe costs and create a better experience. Currently, the only thing players need to pay for transactions outside the Axie universe is to swap SLP for an etymo to cash in.
The blockchain market, which belongs to Axie itself, makes it easier for players to trade related tokens and allows more things to be tokenized, such as the Experience Point, the Ronin sidechain itself, which Jiho believes could become the most used blockchain market in the future.
That sounds like an exaggeration, but if you look closely, Axie does have that potential.
The biggest challenge for cryptocurrencies to date is how to make them popular among mass users and find ways to keep people coming back. If Axe can build on encryption to build on a large user base, help them make a living and provide a great experience, they can use it on any product of choice, which is why they are now vertically integrated, because it leads to a better user experience.
Axie is building not just a game, but a Web3 aggregator and trying to bring in as many value chains as possible. In addition, by creating a more entertaining experience and attracting large numbers of users, Axie is attracting a lot of unrequited capital, which is rare in cryptocurrencies.
There are several reasons why this can be done:
People buy Axie as a pet, with 2 billion pet owners worldwide, 99.99 percent of whom knew they would spend a lot of money before they bought a pet, and Axie is already attracting a lot of pet buyers who don’t expect a return.
People love games. Fifteen percent of Axe players say play is the main attraction, and Axie is improving the gaming experience with better play and animation.
E-Competition Championship. Axie itself is well suited for electric competitions, and recent events have led to an increase in Twitch viewing, which will bring sponsorship money to the game.
Sponsors can bring in external money. Like aggregators like Facebook and Google, when you have a lot of users, it’s like having a “cash cow”. Aave, for example, has invested a lot of external money in the system, and as Axie’s user base grows, sponsor issues need not worry. Because revenue goes directly to player-controlled Community Treasury, sponsorship can lead to incremental rather than reduced.
However, the game is getting wilder and wilder. Unlike traditional games, Axie’s money and power are not entirely in sky Mavis’s 40-person core team, but are constantly being decentralized.
Decentricization of the Axie universe
There are many ways to decentralize Axie.
First, by the end of this year, “the $AXS ecosystem will be open”. In November 2020, Axie also went on sale for its AXS managed tokens, selling 11% of them to the public. Combined with a private sale, advisory shares, sky Mavis team and ecosystem fund, 22 per cent of the 270 million AXS are now in circulation.
To drive the decentivization process, the Sky Mavis team can vote on locked Play-to-Earn and Sparking Reward tokens. Under the plan, AXS tokens would be fully unlocked within 65 months, meaning developers would slowly lose voting rights in the game by the end of 2023.
So far, Play-to-earn has focused on getting SLP tokens, but in the coming months, players will also be able to get AXS tokens by playing games. At the same time, AXS holders will be able to sell AXS for more rewards and then vote on the future direction of the game. In the white paper, the team lists a range of things the community can vote for:
Will Axie Infinity Limited continue to pay Sky Mavis to develop Axie Infinity?
Do you want to use the market created by Sky Mavis for your game?
How does Community Treasury reward AXS holders and the Axie community?
Should The Community Treasury Fund be associated with other services?
In the second phase of decentralization, Sky Mavis also plans to open up the SDK to other developers to create new things, hoping to experience many UGC games with Axie in the same Axie universe. In fact, community members are already building content without asking for anything in return.
Over the next two years, if all goes according to plan, Axie players will take over the community, voting primarily on how the Community Treasury Fund will be used, and they will be able to create more content for the gaming universe and win tokens for that content. They can even decide to redo Axie’s vertical integration, or do better markets, side chains, wallets and exchanges.
If all goes according to way, Axie could become a more important corner of Metaverse, a beacon for people to create a decentralized world of work and play online.
When can a virtual world interact with and make an impact on the real world?
Today, thousands of people make a living by playing games in virtual worlds, and they are participants in the virtual economy. Children in the Philippines, Vietnam, Brazil and more are applying for Axie scholarships to apply for college tuition or work in the hope of changing their fortunes.
In this virtual country, Axie Infinity expands and enhances ITS in several predictable ways:
content. In the next few years, we’re very likely to see Axie movies or Netflix shows, so can NFT ownership bring a share to their owners by using Axie in movies? Can the owner of Mystery Axe negotiate directly with the game studio or create his own character online?
Cosmic expansion and UGC. The Axie team has said they can’t produce enough content and experiences to meet the growing demands of users, so they want to turn to players for help. Will “Axie Infinity” be the next Roblox to let creators make money using tools?
Encryption is expanding. With millions of players using cryptocurrencies, will Axie give novices more tools to not only earn, but also manage and grow their cryptocurrencies?
At the moment, it sounds like an exaggeration to make that assumption after just a few months of income, but Axie Infinity does have a chance to be the most valuable IP.
How the future evolves will be a long time coming, but that impact will only really come to light when Axie Infinity realizes its ability to reshape real-world policies and help the world adapt to a virtual future, when people may not need a traditional job to survive.
Before creating Axie, who studied military and economic history at Yale University, Jiho loved collecting fossils and insects, and his college thesis was Hamilton’s debt restructuring plan. Axie is actually a combination of these two quirks, in which he combines his knowledge with his hobbies to design a new economic model.
When Axie has enough players to make a living from the game, the team can work with the government to experiment with the impact of UBI. In the real world, it’s hard to accurately measure the impact of UBI, but in the virtual world it’s relatively easy to implement.
In addition to funding, one of UBI’s biggest challenges is approach, accessories, and a sense of self-worth. As more and more industries move into automation and the demand for manpower becomes lower and lower, we will need new ways to bring these things. In Kurt Vonnegut’s first novel( 1952′ Player Piano), he describes a future in which automation replaces most jobs, and for that reason the government hires people to dig holes and fill them, and repeats them all the time. In Metaverse, Axie can bring something more fulfilling and interesting than digging a hole.
Are these beyond our control now? Of course, and a lot of things can go wrong. Cryptocurrencies, for example, are not impossible to believe. Even if it doesn’t collapse in the long run, another crypto-winter may lead to the stagnation of Axie’s development and even hurt the gaming community.
The development of vertical integration, while leading to better modular components, also means more opportunities for error; decentralization and the transfer of power to communities can also lead to unpredictable results; and as the number of players grows, servers may continue to go down, and players may feel they no longer need to rely on Axie for revenue.
The only constant in the gaming industry is the change, the last month’s hot game, next month may become the old news.
But Axie did bring something special. Play-to-earn mode can attract more new users who want to make a living from the game and allow them to participate in the game longer by replacing hiring. Turning Axie Infinity into a platform for player ownership and management can lead to greater user stickiness through network effects and high switching costs.
Metaverse needs more than just entertainment, it needs to break down the boundaries between entertainment and employment, which Axie has proven to be feasible.
Axie’s growth occurs during the flat period of virtual currencies, when people think NFT may be “cool” and people are questioning whether Web3 really has any influence on the real world, so Axie is worth noting.
If you look at the 10 or 20 years range, I think Axie is just the beginning of something big, both in terms of income and impact. In the medium term, it’s a player-owned, Pokemon-style vertical integration experience; in the long run, it could be a new country in Metaverse that can improve the quality of life for millions of people around the world.
For a cute little game, either result is very good.
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