How Does Axie Infinity Make Money

Axie Infinity
is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio founded by Trung Nguyen in 2018. Nguyen combined his involvement in blockchain accountability and the
CryptoKitties
craze to launch the game in August 2018. Heaven Mavis generates the bulk of its revenue via the 4.25% fee it charges on all in-game purchases. This includes land purchases, monster NFT trading, and monster breeding.
Axie Infinity
requires that all new players purchase three monsters to go started. Since the cost can run into hundreds of dollars, Sky Mavis will lend players the monsters and collect a 30% interest fee once the player starts earning currency.

Contents

  • Axie Infinity origin story
  • How does Axie Infinity piece of work?
  • Axie Infinity revenue generation
    • In-game purchases
    • User earnings
  • Connected Business Concepts
  • Related Blockchain Business Frameworks
    • Related


Axie Infinity origin story

Axie Infinity
is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio founded past Trung Nguyen in 2018.

Before founding Heaven Mavis, Nguyen had worked for the Silicon Valley-based Anduin Transactions, a platform that made investment deals faster, more than efficient, and more than transparent.

Nguyen had a particular interest in the accountability facilitated by the Anduin platform, which he linked with the burgeoning involvement in blockchain in Vietnam.

While others focused on Bitcoin and other cryptocurrencies, Nguyen recognized that blockchain technology could be used to build video games. He was particularly in the game
CryptoKitties, where users could buy, sell, and breed unique virtual cats validated by the Ethereum blockchain.

Over the next few months, Nguyen adult his own blockchain-based game, combining the truthful ownership element of
CryptoKitties
with the competitive gameplay of the
Pokémon
series.

The game, which he called
Axie Infinity, featured fantasy creatures based on the axolotl, a Mexican salamander with the ability to regenerate limbs, gills, and parts of the optics and brains. Information technology was released in August 2018 and was an instant success.

In October 2021, total sales book in the 3 years since launching amounted to $2.iii billion.

The company as well secured a further $152 million in Series B funding to build a distribution platform to help developers create blockchain-based games.


How does Axie Infinity work?

In
Axie Infinity, every monster is a non-fungible token (NFT).

Players earn tokens by engaging in turn-based battles with other players or computer-controlled teams. These tokens are and so used to “breed” new monsters by creating more NFTs.

Since the game is based on the Ethereum blockchain, each monster is recorded as a unique object and be tracked.

This tells other game players that the creation of the monster took real and verifiable time and effort to create, which increases value.

The NFT-based monsters tin can besides exist traded in the game’s market for real money.


Axie Infinity revenue generation

Sky Mavis earns coin from the game in two primary means.


In-game purchases

Firstly, acquirement comes from in-game purchases such as land and NFT monsters. The visitor takes 4.25% of the total price of each buy. In February 2021, nine plots of land in
Axie Infinity
sold for approximately $1.5 meg.

The company also earns money from convenance fees, which are collected when a thespian decides to create a new monster. Fees are payable in either SLP (Smooth Love Potion) or the game governance token AXS.

Annotation that Sky Mavis must share the breeding fee with the developers and owners of AXS.


User earnings

New players to the game must first invest in three monsters, with the cheapest monsters costing around $200 each.

For players who cannot beget this upfront expense, the company will lend them the monsters. When they progress to the bespeak of making and selling their own monsters, Sky Mavis will collect 30% interest.

Connected Business concern Concepts

EA Sports Business Model

Web3

proof-of-work-vs-proof-of-stake

Proof of Activity

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Proof-of-Activeness (PoA) is a blockchain consensus algorithm that facilitates genuine transactions and consensus amidst miners. That is a consensus algorithm combining proof-of-work and proof-of-pale. This consensus algorithm is designed to prevent attacks on the underlying Blockchain.

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Proof-of-Activeness (PoA) is a blockchain consensus algorithm that facilitates genuine transactions and consensus amongst miners. That is a consensus algorithm combining proof-of-work and proof-of-stake. This consensus algorithm is designed to prevent attacks on the underlying Blockchain.

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