The Expanding Axie Infinity Metaverse

An analysis of Sky Mavis' "Axie Core" policy shift and how it impacts Axie Infinity's growing number of gaming experiences.

Feb 03, 2023

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Executive Summary

Sky Mavis announced Axie Core, a shift in policy by going back to its roots and return emphasis back to the axie NFTs rather than any one particular game. Axies are digital pets that unlock multiple gaming experiences as its main utility. But during the latest bull run, a lot of newcomers focused more on the game than the NFT. The development team made it a point to emphasize that Axie Infinity is more than just another video game.

In 2022, the team did just that as they shipped multiple features that focus on gameplay experiences that add value to the Axie NFT. This article looks at the policy change Sky Mavis took and how each gaming experience relates to the economy as a whole. It is no secret that Axie Infinity was the game that put the blockchain gaming industry on the map. This is because it was arguably the first successful gaming project that allowed gamers to earn from interacting with their ecosystem. At the peak of its success, the price of its governance token, Axie Infinity Shards ($AXS) hit an all-time high of $164.9, and the game had roughly 2.7 million users. The numbers have taken a turn for the worse since then as the economic model proved to be unsustainable. The economy crashed as demand for assets couldn’t keep up with the overwhelming increase in supply, which ultimately led to the start of the project’s misfortunes.

The crypto bear market didn't help Axie Infinity to recover, but Sky Mavis, the company behind Axie Infinity, has been busy building during this red market crisis. One thing unique about how Sky Mavis is developing its metaverse is that they are not building it alone. This article looks at how Sky Mavis has built multiple gaming experiences on top of their existing intellectual property. It also provides an analysis of the mechanics being implemented for these gaming experiences, and how these games impact the overall Axie ecosystem.

Policy Shift: Axie Core
Infinite Game Experiences
Axie Infinity: Origins
Axie Infinity Builder’s Program
Axie Infinity: Raylights
Axie Infinity: Homeland
Axie Infinity Live-Ops
Future Possibilities
Lessons Learned

Policy Shift: Axie Core

Axies are digital creatures that give you access to the games within the Axie Infinity ecosystem. One key policy shift that the team has decided to adopt is to put the focus back on these axies instead of the game. This doesn’t mean that Sky Mavis will stop developing games under the Axie Infinity IP. Instead, emphasis is placed on NFTs and their ability to connect with the user.Within the Axie Infinity ecosystem, axies are considered the key to unlocking multiple gaming experiences.

Sky Mavis decided to put their NFTs at the center of the entire ecosystem. They recently introduced a cosmetic mechanic called Axie Accessories, which aims to personalise and distinguish each axie from another with the use of accessories that axies can equip. These NFTs have long been marketed as the “key to unlocking infinite experiences”. Cosmological mechanics help build intrinsic value for assets by creating a bond between NFTs and their owners.

An easier way to illustrate the policy shift is by using the purchase of a pet, let’s say a dog, as an example. When someone purchases a dog from a pet store, that person is purchasing the dog at the dog’s market value. Once the person builds a relationship with the dog, that pet increases in value from the person’s perspective because of the intrinsic value it has for the owner. Sky Mavis is trying to replicate that same bond but with digital pets. This is where the whole economy can, and probably will, revolve around.

Infinite Game Experiences

This section focuses on the different experiences that two of the main Axie assets, axies and land NFTs, unlock for the gamer. Axie Infinity: Origins and the Axie Builder’s Program are two experiences that require axie NFTs, while Axie Infinity: Raylights and Axie Infinity: Homeland are two games that use land NFTs. This section also discusses the Live-Ops events that the team does outside of the main gaming experiences. There will be a description of each gaming experience, as well as the economic impact it has on the entirety of the Axie ecosystem.

Axie Infinity: Origins

Axie Infinity: Origins is the first major gaming experience in the Axie Infinity ecosystem. This is the updated version of the card game that sparked the blockchain gaming revolution. A more comprehensive deep dive can be found in a previous article. Each axie has six body parts that correspond to a move set in the game. Players form a team of three axies and compete against each other for a place on the leaderboards. Additionally, the team is marketing the game for Esports, which can greatly benefit the game.

The economic impact of Axie Infinity: Origins lies in the updates and mechanism changes that the Sky Mavis will make as this directly affects the strategies players formulate when entering a match. Though there is mention of part upgrades in the future, there is currently no way to change an axie’s body part. This means that players are stuck with the moves that their axie has.

Whenever players’ axies are affected by an update, one of two things can happen. The first is that players will have to reconstruct their teams. The reconstruction may come in the form of purchasing brand-new axies, or breeding axies until the correct body part combinations are achieved. The second is that players will get frustrated and might see the update as a way for developers to get more revenue. This is a very dangerous outcome as it likely results in players leaving the ecosystem.

Axie Esports’ impact on the economy is very similar. Tournaments do not necessarily have the same rules. Its variability is what makes each tournament unique, exciting, and distinct from one another. Joining these tournaments may cause players to purchase new axies just to be competitive for that event. Overall, Axie Infinity: Origins has a large impact on the demand side of the axie NFTs depending on the updates they release, or the restrictions players have in using axies to compete.

What else did you miss?

Axie Infinity Builder’s Program
Axie Infinity: Raylights
Axie Infinity: Homeland
Axie Infinity Live-Ops
Future Possibilities
Lessons Learned

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Lorenzo Martin | Junior Associate
E: Lorenzo.Martin@EconomicsDesign.com | W: EconomicsDesign.com

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