Axie Infinity is the market leader in blockchain gaming, having just surpassed $4 billion in total NFT trading volume. But it’s also battling a dwindling play-to-earn economy, which creator Sky Mavis is working to fix, and many players aren’t happy with this week’s announcement of a transaction fee hike.
Sky Mavis said yesterday that the transaction charge on Axie Infinity’s marketplace would increase from 4.25 percent to 5.25 percent starting March 7. This will apply to all transactions on the Axie marketplace, which is powered by Ronin, an Ethereum-based proprietary sidechain scaling solution.
Why is it necessary to increase the fee? It’s mostly to reward community members that bring in new players, according to Sky Mavis. The developer will implement a system that will allow Axie gamers to enter a code from a specific content producer—such as a streamer or influencer—and that content creator will receive an extra 1% of their earnings.
Fans of other popular online games, such as Fortnite and Roblox, will be familiar with the system, compensating content creators with a percentage of digital currency purchases when their unique code is utilized. In addition, Axie Infinity will introduce a model variation to the Web3 game space, with millions of players and an active online community.
When players shop on the Axie marketplace without using a creator code, the entire 5.25 percent goes to the community treasury, which is used to fund various marketing and growth initiatives for Axie Infinity.
The rate hike comes amid a financial crisis for Axie Infinity’s unusual play-to-earn model, which pays players with crypto tokens for playing the game but needs an initial investment in potentially expensive NFT assets.
Last summer, Axie Infinity exploded in popularity, generating billions of dollars in NFT sales and boosting the value of the game’s AXS governance token and SLP reward token. However, trade volume has plummeted in the previous three months, with both tokens—particularly SLP—falling precipitously from their respective price maxima.
Sky Mavis announced a series of adjustments to the token rewards program earlier this month, with more to coming, to reduce the quantity of SLP given daily.
Following the announcement, Axie Infinity’s critical KPIs enjoyed a brief spike, but SLP is still down 95% from its peak. According to CryptoSlam data, February was Axie’s worst NFT volume since May 2021, with $82.5 million. Axie’s most significant month of trading volume last August was $848 million, a drop of more than 90%.
Raising Axie’s marketplace transaction fee amid a recession has enraged many users, who have expressed their displeasure on social media. In addition, some players were irritated by the prospect of paying extra to trade NFT products, especially given their recent depreciation.
Others believed that such a significant issue should have been a community vote through the Axie Infinity DAO (decentralized autonomous organization). But unfortunately, the game has yet to integrate a voting system, even though the AXS coin was built for governance.
“Sentiment around Axie is shallow, and this is what they do,” a Twitter user as Axie Coach wrote. “By not repairing it sooner, Axie damaged their economy.” Axie is gradually removing free transactions to get you to acquire a new coin that they already possess a large amount of. Axie has now raised the tax. “Your governance token is powerless.”
However, not everyone is depressed by the news. “This is the start of something new, and creators receiving 1% of marketplace transactions is a great gain,” Brycent, a leading Axie, and play-to-earn gaming streamer and Twitter Spaces presenter, tweeted. However, he did warn that the concept could have negative consequences, such as a rise in shilling.
View from the top
Jeff Zirlin, the co-founder of Axie Infinity and Sky Mavis Growth Lead, defended the fee hike on Twitter. He believes it was the most sustainable solution for supporting creators who add value to the ecosystem. Furthermore, when all costs and royalties were considered, he claimed that Axie’s marketplace fee was still lower than many NFT collections traded on the significant Ethereum marketplace OpenSea.
In the midst of it all, Zirlin also stated that the marketplace charge should be chosen by the community when the capability allows.
“As the last point, I believe the marketplace charge should be established by governance once that capability is enabled,” he added. “The marketplace fee can be altered again in the future, and as usual, we can adjust if we find a better solution and source of cash.”
In response to criticism, Sky Mavis said late yesterday afternoon that it “would be pushing out the formal launch” of the creator code program to get feedback from the community. According to Quinn Campbell, the studio’s marketing lead, Sky Mavis will begin sharing more details about its proposed approach and will gather comments from players via Twitter Spaces.
While the creator code program’s structure may alter, Campbell said the fee increase on March 7 “will be part of all creative and community discussions over the following few weeks.”
Axie Infinity is undergoing structural and gameplay adjustments and dealing with current economic issues. The Ethereum-based game will soon introduce free “starting Axies” that will allow new players to try the game without having to initially purchase NFTs, as well as a revamped battle mode before eventually adding other land-based gameplay.
Despite the opposition, Axie’s AXS token has risen 13 percent in the previous 24 hours to a current price of over $57, outperforming the approximately 6% increase in the whole cryptocurrency market, according to CoinGecko data. In the same timeframe, the SLP token has gained over 3%.
NFT Show Europe was all about innovators of the Future of the Internet: web 3.0, metaverse, blockchain, and digital art￼
Valencia, October 10th 2022: NFT Show Europe, the leading event on Web 3.0, Blockchain, Metaverse and Digital Art took place in the futuristic venue of the City of Arts and Sciences in Valencia, Spain. From the 17th to the 18th of September 2022, #NFTSE attracted over 2300 visitors from 59 countries.
The show featured a packed conference programme with world-renowned speakers. Topics covered included the use of Blockchain and Web 3.0 oriented technologies in traditional businesses, gaming, sports, fashion, art and collectibles, among others.
First edition beyond expectations
“The event showcased the very best in European talent, demonstrating the unstoppable growth of these technologies and its potential in both business and artistic innovation.” explains Patrick Cyrus, Marketing Manager of #NFTSE22.
“We already count with the support of big players such as Tezos, Polkadot, Zeroframe, Crypto Page, Block Ape Scissors or Wert. All of us were equally impressed with the level of potential collaborations and we are already looking forward to the next edition.”
NFT Show beyond Europe
#NFTSE gathers some of the most influential companies and artists to discuss the latest trends and developments. The event was a major boost for the web 3.0 industry companies, fostering new partnerships and collaborations, which helped to solidify its position as a major meeting point in this world.
With visitors from 59 countries attending, the event showcased the latest in blockchain and web3 technologies and its potential applications in the real world.
The speaker line-up was formed by industry leaders such as Takayaki Suzuki, CEO of Metatokio and Esen Tümer, Founder of Metaverse Hub. Other notable speakers included Hide Uehara, Director of Business Development for Square Enix or Sam Hamilton, the Creative Director of Decentraland Foundation.
Showcasing more than 170 artworks by artists such as Zancan, Solimán López, Pablo Alpe, Ulysses, A.L. Crego or Jenni Pasanen, the art exhibition included exclusive minting by fxhash.com, workshops, interactive installations, panel discussions and XR experiences.
Conclusions & Trends
“Web 3.0 technologies provide a way for users to create and interact with digital assets in a virtual space. These technologies have the potential to revolutionize many industries, including gaming, art and finance. NFT Show Europe provided a platform for leading experts to share their insights on those industries in a futuristic business-art atmosphere.” adds Esen Tümer, Founder of MetaverseHub based in Turkey, Istambul.
NFTs and crypto are transforming the art industry by providing creators with a new way to monetize their work and by giving collectors a new way to invest in art. They can be used to track and prove ownership of everything from digital art to in-game items. One of the barriers is the acquisition of cryptocurrencies which is already approached by companies such as Wert.
“We enable the consumers to purchase NFTs with credit or debit cards just like normal or virtual goods … if you’re in the NFT, Generative Art and Web 3.0 space (NFTSE) is just the perfect spot to do that.” explains George Basiladze, Founder of Wert.io.
There is no doubt that the web 3.0 users have the potential to change the way we live, work and play. By harnessing the power of the internet, these technologies can help us to connect with others in new and innovative ways and help us to access information and services that were previously out of reach. With the right support and investment, web 3.0 content will help us to create a more inclusive and connected world.
The producers of NFT Show Europe are already planning the next stages for 2023.
Logan Paul’s unsuccessful NFT Investment: Over $620K to $10
Logan Paul, a well-known YouTuber, has lost millions of dollars as a result of the current crypto winter.
Logan Paul, an American YouTuber, actor, and social media star, holds a $623,000 unrealized loss as a result of his investment in an NFT from the Azuki line.
Also unsuccessful is his involvement with cryptocurrency. The market collapse has reduced the value of his possessions by more than $500,000.
Losses in Logan Paul’s Critical Papers
The well-known YouTuber joined the cryptocurrency bandwagon last spring when the values of most assets were surging, just like many other people. A few months later, he spent almost $2.5 million on NFTs, joining the trend. The most expensive thing he bought was a piece from the Azuki collection, which cost him $623,000.
However, the YouTube celebrity has suffered significant financial losses as a result of the unstable state of the bitcoin market and the NFT niche, at least on paper. The Azuki NFT currently trades around $10, as Paul recently made known, a drastic decline that sparked debate in the cryptocurrency world.
Many Twitter users made fun of the celebrity for using non-fungible tokens to transact at a time when there was obviously excitement in the industry. Others asserted that digital collectibles are frauds and should not be purchased. Some, however, contend that the price decline is a result of the current bad market and that once the next bull run begins, the valuation will rise.
It’s important to note that the NFT transactions were booming at the time he purchased the things. OpenSea’s trade volume spiked to almost $500 million for a single day at one time last summer, but in recent months, it has struggled to reach $10 million.
Paul has added bitcoin and other alternative currency to his portfolio in addition to NFTs. He recently acknowledged that he had lost almost $500,000 on such investments when he first entered the ecosystem at its peak last year.
Unfortunately for others that followed suit, this year has seen a significant decline in the value of the cryptocurrency market, which now has a total valuation of less than $1 billion (down from $3 billion a year ago).
Millions are Lost by KSI
The British rapper JJ Olatunji, a.k.a. KSI, was another prominent YouTuber who was severely hurt by the crypto market decline.
When Terra’s native token, LUNA, began to fall in price in May, he took the chance to predict that the price will eventually rise again. When the asset was going for about $25, KSI invested $2.8 million of his wealth in it.
He had no idea that the token would keep declining and eventually fall to almost nothing, wiping away the rapper’s multi-million dollar investment.
KSI is a strong supporter of the cryptocurrency market, especially bitcoin. He claimed that BTC will be crucial to the monetary system of the future last year. The rapper continued, claiming that he would have given each UK citizen £100 worth of bitcoin if he were the Prime Minister.
BTC is the ideal investment vehicle in KSI’s opinion. He believes that after ten years, individuals who have some exposure to the asset will “be laughing”:
“I feel like a lot of people are trying to search for quick money like, ‘Oh, I want to get in and out,’ but they’re not really seeing that. I’m prepared to travel a considerable distance for this.
Ford is getting ready to enter the Metaverse with digital cars and NFTs
A month after the company announced significant personnel reductions, it has filed a trademark application covering its future initiatives in the Metaverse and NFT space.
Ford Motor Company, an American automaker, has filed 19 trademark applications across its key automobile brands as it prepares to enter the realm of nonfungible tokens (NFTs) and the Metaverse.
Mike Kondoudis, a trademark attorney licensed by the United States Patent and Trade Office (USPTO), disclosed in a tweet on Wednesday that the business had submitted a total of 19 trademark applications covering its car brands, including Mustang, Bronco, Lincoln, Explorer, and F-150 Lightning, among others.
The trademark applications include a projected online marketplace for NFTs and virtual versions of its businesses’ automobiles, trucks, vans, SUVs, and clothes.
Ford intends to produce digital images of its vehicles, SUVs, trucks, and vans that will be verified by NFTs, according to USPTO filings submitted by the automaker on September 2.
The business also disclosed plans for “downloadable virtual commodities,” or “computer programs,” that would include apparel, accessories, and parts for vehicles for usage in “online virtual environments,” such as virtual and augmented reality trade exhibitions.
Additionally, there are plans to develop an online marketplace for “others’ digital artwork” as well as “online retail shop services featuring non-fungible tokens (NFTs) and digital collectibles.”
Less than a month after Ford Executive Chairman Bill Ford and CEO Jim Farley announced significant personnel reductions from its global workforce to decrease corporate expenses; Ford has decided to enter the Web3 area.
Ford isn’t the first automaker to enter the Metaverse market.
While premium automakers like Bentley and Lamborghini have already launched NFT collections, automakers including Nissan, Toyota, and Hyundai have indicated ambitions to enter the fast-expanding Metaverse market.
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