Axie Infinity, the blockchain gaming and NFT giant, has launched its staking program. Following the announcement, the price of AXS has jumped from the upper $60s to over $110 in less than 24 hours. According to the developers, the Axie Infinity DAO treasury now holds over 1 billion dollars. Evidently, the company is a massive success! Axie Infinity also airdropped 60 million dollars worth of tokens to the early users of the game on Thursday.
What is Axie Infinity?
Axie Infinity is a blockchain video game. It is also a play-to-earn type of game and a decentralized organization (DAO). This form of game approach was the main attraction for most blockchain users. Following the success of the blockchain game, Axie Infinity ventured into NFTs. They began selling NFT items for their blockchain game. This saw the revenue for the company shoot up massively, along with the token price. Presently, Axie Infinity is raking in more than $2 billion in annual revenue. In comparison, the largest decentralized exchange on Ethereum by market cap, Uniswap, is making only $50 million in revenues every year.
What Do We Mean by Staking?
Staking is the act of locking up your tokens into a staking platform in order to earn rewards in return. Staking is important because it helps to secure the network. The stakers receive rewards in the form of native tokens, which they can re-stake or sell on the open market. Either way, this is a great opportunity for passive income.
What Does Axie Infinity’s Staking Program Entail?
The Axie Infinity ecosystem has two tokes: Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). Players earn SLP when they play the game. However, AXS is the native governance token of the Axie Infinity DAO. According to Axie Infinity, they have locked up 29% of the AXS total supply. This will be the reward for the stakers. 29% comprises 78,300,000 AXS tokens. The token unlock will be gradual over a period of about six years. The team says that staking is their way of rewarding community members who joined Axie Infinity for the long haul.
According to the announced unlock schedule, from day 0 of staking to the third month, no tokens will be unlocked. Once tokens are locked in the staking platform, they can only be unlocked after three months. The company has set a total number of tokens to be unlocked every 90 days after the first three months.
The Axie Infinity project continues to drop hot news on the market. Gaming and NFTs are the next phases of blockchain growth, and they have really shone this year. These two niches will only grow larger, moving ahead. Axie Infinity managed to be the first to merge NFTs, blockchain gaming, DAOs, and DeFi in one platform. Other projects can only aspire to be like Axie or better. Axie Infinity is a true trailblazer. Presently, the price of AXS sits at $112.04. Eventually, AXS price has the potential to go very high