Today’s SLP token was on the rise. It traded at $0.01926 at the moment of writing, a 24.17% gain over the previous 24 hours.
After a 136% increase in trading volume over the last 24 hours, it stood at $1262,461,511
Why is the SLP token market on the rise?
The primary reason the SLP token’s price is rising is because of the imminent reduction in SLP token supply by Axie Infinity.
You may be wondering how these two things (Smooth Love Potion & Axie Infinity), are connected. Here’s how.
Smooth Love Potion or SLP can be earned by winning competitions at Axie Infinity. A metaverse blockchain that allows gamers the ability to play games and earn money while playing them.
Axie Infinity players collect, breed, raise, battle, and trade non-fungible tokens (NFTs) based creatures called ‘Axies’. Players earn Smooth Love Potion (SLP) tokens as rewards and the SLP tokens can be redeemed later to breed new ‘Axies’ creatures.
SLP tokens differ from AXS which is the cryptocurrency used to transact within the AxieInfinity ecosystem.
Axie developers will reduce SLP token supplies
The developers of Axie infinity want to make SLP tokens more scarce by making changes that will balance the ecosystem.
The team had these words to say about the issuance Smooth Love Potion tokens (SLP).
“The daily quest, in principle, was great to encourage people to play every day, but it’s now become a mass emission mechanism for SLP. By removing the daily quest, we can reduce issuance by around 45 million SLP per day.”
The developers described this as a “painful medicine,” that will be necessary for the future progress of the game. The developers stated that if implemented, the supply for SLP tokens could drop up to 56%.
“The Axie economy requires drastic and decisive action now, or we risk total and permanent economic collapse. That would be far more painful.”
The team is looking to establish a prize fund of $6 million and change its reward structure.
Axie Infinity awarded 3,000 AXS for the top player on the leaderboard in season 19. The reward for the top 300,000. player in the following season has been raised to 117.676.
The team concluded their discussion by saying:
“Put simply, we’ve prioritized growth and onboard millions. Without this approach, Axie would likely have remained a small, niche game with a few thousand players.”
The price of Axie Infinity Token (AXS), has increased over the past few days as the overall crypto market recovers. Its current price is 30% more than it was at the beginning of January.
The SLP price soared more than 40% after the announcement of the SLP cut. However, it eventually reverted to its current value.