One play-to-earn (P2E) altcoin is seeing major gains after news spread that its future supply would be cut drastically.
In a new blog post, hit blockchain-based game Axie Infinity (AXS) announced a major rule change for its 20th season where players will no longer earn Smooth Love Potion (SLP) for completing “daily quests” in an effort to stabilize the token’s value.
“As a first measure to stabilize the economy, we have removed all SLP rewards from adventure mode [which] was originally conceived as a way for the community to learn how to use their Axies. It has outlived its purpose.”
‘Axies’ are non-fungible tokens (NFTs) that also serve as creatures within the game that users can battle and breed.
The gaming company says that the rule change will reduce new SLP issuance by approximately 45 million tokens each day.
A previous blog post stressed how critical the move is toward ensuring the survival of the game itself.
“Inflation of SLP has been very high, with around 4x more SLP being created (supplied) per day than burned (demanded) through breeding [Axies].
We know that this is painful medicine. The Axie economy requires drastic and decisive action now or we risk total and permanent economic collapse. That would be far more painful.”
The price of Smooth Love Potion has been ripping higher and higher all week. Last Wednesday SLP was trading for under a penny but began to surge upward in successive waves starting on Monday.
Today the altcoin is up another 39%, and remains up 176% in the last seven days, priced at $0.026
Axie Infinity’s native token AXS is also in a winning mood, having risen nearly 30% over the same time period and currently up 4.81% to $66.69 at time of writing.
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Featured Image: Shutterstock/Natalia Siiatovskaia/KDdesignphoto
