Smooth Love Potion (SLP) is one of the ecosystem's most sensitive topics Axie Infinity recently. SLP is a utility token that was released in December 2019. Its main goal was not to make the token something great, but the community's response to the SLP release made it clear that something special was happening in the gaming economy. Changes in the use of SLP and its growth in 2021 led not only to a solid increase in liquidity, but also to some kind of inflation of the token over all this time. By comparison, by 2021, the average number of SLPs burned per day had grown more than 500 times (50%). The data to date shows us a growing chasm between issued and burned SLP.
The main difficulty in balancing the SLP economy has to do with predicting future player growth along with the timing of product releases in the gaming ecosystem. V Axie Infinity are currently working on a number of new game features, including the next generation of Origins combat skills, and new game locations in Project K. According to the developers, each of these new game features should affect the balancing of the economy in Axie Infinity... Over the past year, a lot of time and effort has been spent expanding systems to accommodate the growth and creation of the basic blockchain components necessary for the ecosystem, such as Katana, Ronin and Staking.
The game community and the Sky Mavis team offered some of their ideas to the developers Axie Infinitythat could solve the problems with the SLP economy. V Axie Infinity, took into account all opinions, but emphasized that there are many factors that must be taken into account for the implementation of each of the proposed ideas, so in the end they decided not to make any promises as to which of the ideas will be implemented.
В Axie Infinity also admitted their mistake regarding the MMR reset, promised to learn a lesson and will fix it in the future. We are talking about the MMR reset, which happened in the offseason of season 19, when they should have warned in advance in the blog about the MMR reset, but as a result, the message about the reset did not follow.
A more detailed adjustment of MMR reset for different levels was considered, it was impossible due to many factors, especially with regard to technical limitations. However, this MMR reset helped ensure that the supply and demand of the SLP was closer to balance. Over time, MMR growth climbed as the player base grew, leading to more SLPs being generated each offseason.
What will developers consider?
Decrease supply:
• Iterative balancing of all SLP in-game rewards: the current alpha gameplay continues to improve in several ways, while player activity has evolved in an amazing way. As such, with an ongoing balancing process, we may need to manually lower the SLP reward level for daily quests, PvP and PvE. We hope that in the long term this can be regulated more dynamically.
• Changing the ratio of in-game incentives: SLP is not the only token in our ecosystem. In fact, our long-term vision is to distribute AXS rewards more equitably through gameplay. We want top players to gain influence in our community. We are exploring ways to do this without creating unintended inflationary problems for AXS. Unfortunately, we currently do not have the ability to distribute AXS as a battle reward, so in order to work on this we will need to separate engineering efforts from other projects. In the meantime, we are considering increasing the AXS leaderboard reward and reducing the SLP reward for high MMR players as an option.
• Reduction of SLP in non-skill mechanics. This is especially true for bots: we received a number of recommendations from the community aimed at reducing the SLP reward for the parts of the game that are most vulnerable to automated algorithms or bots. In particular, this can happen in several ways, including a general reduction in emissions for PvE, or updating the requirements for Daily Quests to be more arena-oriented than adventure-oriented, so that it is easier for real players to make money. Unfortunately, this is not an exact science and it is likely that some real people will earn less SLP due to this change. Another idea is to require energy to earn SLP in PVE. Currently, this is not a case where players can still hit the 50 SLP cap when they are out of energy.
Increased demand:
• Axei release / burning / axi consumption: This is a very important function that we have to be very careful with and requires significant engineering effort to create. However, this year we are planning to release some small tests so that we can iteratively check the mechanics. Since the main utility of SLP is the creation of new axi, having this combustion mechanism for axi will increase the demand for SLP (and AXS).
• Buyback program for the SLP community: we can allocate a portion of the market commission for a limited period of time to buy back SLPs in the market to the Treasury. This can only be done in unique circumstances, as maintaining fees is essential to the sustainability of the Community Treasury.
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