Axie Infinity (AXS)

What is Axie Infinity?

Axie Infinity (AXS) is the governance token for the Axie Infinity blockchain gaming ecosystem, a digital world where players can battle, collect, and build. The project was launched in 2020 and was co-founded by Trung Nguyen. As an ERC-20 token on the Ethereum blockchain, AXS allows holders to participate in the platform's governance by voting on key decisions regarding the game's future development and treasury management. The token is central to the game's economy, used for staking, in-game rewards, and other functions. The ecosystem also includes other related tokens, such as SLP and RON, which serve different purposes within the game.

How does Axie Infinity work?

Axie Infinity (AXS) operates as an ERC-20 token on the Ethereum blockchain, which secures its network through a Proof-of-Stake (PoS) consensus mechanism. In this system, validators lock up a certain amount of ETH as collateral to propose and validate new blocks of transactions. This process ensures the integrity and security of all transactions recorded on the Ethereum ledger, including those involving AXS.

The primary participants in this network are Ethereum validators, who are responsible for maintaining the blockchain's operation. These validators run specialized software to process transactions, bundle them into blocks, and add them to the chain in chronological order. For their contribution to network security and transaction processing, validators receive rewards, which incentivizes their continued participation and honest behavior.

When a user sends or receives AXS, the transaction is first broadcast to the Ethereum network for processing. A validator then includes this transaction in a new block that they are proposing to add to the blockchain. Once other validators confirm the block's validity and it is officially added to the chain, the transaction is considered final and irreversible.

Axie Infinity use cases

Axie Infinity tokenomics

The tokenomics of Axie Infinity (AXS) are defined by its supply structure within the ecosystem. The circulating supply consists of approximately 173.88 million AXS tokens that are actively available on the market. The token does not have a defined maximum supply, which indicates a potentially inflationary model where the total number of tokens can increase over time. New tokens are typically introduced into circulation through specific mechanisms outlined by the project, such as rewards for staking or player incentives. This approach is designed to support the ongoing growth of the platform by encouraging user participation and rewarding contributions to the network's economy and governance processes.

Axie Infinity price history & milestones

Axie Infinity (AXS) was introduced to the market in 2020 and has since experienced significant price movements. The token's value is subject to market dynamics, similar to other digital assets. Its price history includes notable high and low points that reflect different periods of market activity. The all-time high price for AXS was recorded at $165.37 on November 6, 2021. Conversely, the token's all-time low occurred on November 6, 2020, when the price was $0.1234. These two points represent the historical extremes of the token's valuation since its launch. Based on its market capitalization, Axie Infinity currently holds the rank of 137 in the cryptocurrency market.