Smooth Love Potion: Massive upswing in SLP value follows Axie changes
Rapid price appreciation of SLP may smooth things over with Axie Infinity players and farmers.
Smooth Love Potion saw its price soar after the announcement of economic changes that will take place once the next major update in Axie Infinity goes live.
After months of decline, the SLP token gained 94.7% in value over 7 days, according to data from CoinGecko. At the time of writing, SLP was trading at $0.1908.
SLP is the reward token of Axie Infinity, and the token saw huge gains mainly due to developers Sky Mavis moving to halve the minting of SLP.
According to the recent patch note that the developers released, they will now take out the SLP rewards of all PVE contents of the game namely: the Daily Quest and the Adventure mode:
“We believe the fastest way to reduce this volatility is for us all to come to terms with our collective responsibilities within Axie, and quickly work to build consensus and enable each other’s community efforts. “
With this move, the daily minting of SLP will be reduced by around 56%, or roughly 175 million SLP.
They also decreased the SLP rewards in Arena in order to further address the economic imbalance of SLP.
As compensation, they are now expanding the leaderboards, or the people who will receive AXS as rewards at the end of each season. They expanded it to the top 300,000 and will now release 117,676 AXS compared to the 3,000 AXS of last season.
Sky Mavis also also announced some plans for more burning mechanisms that will help in the stabilization of the price of SLP. This includes the following:
Special cosmetics and skins
Upgraded Axie body parts
Due to the following factors and the approaching launch of the Land Gameplay and battle v3, lunacians are storing up some SLPs to use in the upcoming updates.
AXS on the rise
AXS, the governance token of Axie Infinity, also saw a substantial rise in price following the changes to the in-game economy, although it was less dramatic than the upswing in SLP.
Despite the increase of AXS rewards to be distributed in the leaderboards, the token still saw some growth mainly due to it being a requirement in breeding. With the game going towards a more PVP-centric direction, breeding might be relevant again as players will be looking for more meta-based Axies.
Some may say that this is just a bubble as the 15th of the month is usually a red day for SLP and AXS since it’s the day where the majority of the managers are cashing out but the trend may continue after selling pressure abates.