After months of waiting Axie Infinity has launched its staking mechanism for their AXS governance token on the Ronin sidechain. Users who move their AXS token to Ronin, and then lock away and stake their AXS tokens, will earn an interest paid in AXS.
We can’t say that the feature of AXS staking comes as a complete surprise, because the community has been waiting for it. For now staking works very simple, but over time Sky Mavis wants to expand and build on top of it. Staking AXS will give users a vote in governance decisions.
During the first month of staking, there will be 2 million AXS in rewards. That means that there will be 64.516 AXS per day. If the entire circulating supply of 57.9 million AXS would end up in the staking contract, that would mean that every staked AXS token would earn 0.03 AXS per month. Based on the 3.3 million AXS staked right now, users would earn significantly more.
At the moment of writing, the AXS reward system didn’t launch yet. That’s something that will happen tomorrow, because Sky Mavis wants to give all users in all time zones some time to lock their AXS.
Users who’ve had their AXS on Ronin before October 26th 2020, have received some AXS as a reward. These rewards have been distributed based on Axie and land NFT ownership, and on in-game activity. A total of 800.000 AXS has been distributed across roughly 10.000 users.
What is Axie Infinity again?
Let’s quickly talk a bit about Axie Infinity. The tactical battle game uses its own, native Ronin sidechain. In the game players need to use 3 Axie NFTs to battle opponents and earn Smooth Love Potions (SLP). Players need to use SLP to breed new Axies. In addition parent Axies can only breed children a limited amount of times. SLP has a demand, while the floor price for an Axie NFT is right now more than $200. In short, you need three $200 Axies to play and earn SLP tokens.
Earning SLP tokens has become a source of income for people in developing countries. Among those countries the Philippines is leading the pack. The organization and economics behind this, is also becoming more professional. Third party organizations like Yield Guild Games are building tools and communities to really turn people into gamers earning income by playing Axie Infinity.
Robert Hoogendoorn is a gamer and blockchain enthusiast. He got in touch with crypto in 2014, but the fire really lit in 2017. Professionally he’s a content optimization expert and worked for press agencies and video production companies, always with a focus on the video games & tech industry. He’s a content manager and creator at heart, working on Play to Earn Online Magazine. He’s also Head of Content for DappRadar.