Connect with us

ART & COLLECTABLES

As the Play-to-Earn Economy Slows, Axie Infinity Players Push Back on Fee Increases

Even while the fee increase benefits authors and the community treasury, the Ethereum-based NFT game has irritated some participants.

Published

on

#nft #nfthours #axieinfinity #feehike

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.

Axie’s struggles

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%.

ART & COLLECTABLES

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.

Published

on

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.

Continue Reading

ART & COLLECTABLES

Crypto-Vultures Profit from the Death of Queen Elizabeth

Only a few hours after the Queen’s passing, more than 40 meme tokens bearing her name have been released.

Published

on

Yesterday, according to Buckingham Palace, Her Majesty Queen Elizabeth II passed away. Although her loss triggered a global outpouring of sympathy and grief, it has also been exploited as a money-grab.

Elizabeth II, monarch
Grift endures eternally, but the Queen is gone.

There are over 40 meme coins on Ethereum and the Binance Smart Chain thanks to Queen Elizabeth’s passing (and at least one exploitative NFT collection).

While the news of the British monarch’s demise saddened people worldwide, cryptocurrency scammers took advantage of the occasion to launch dozens of meme coins with Queen themes on Ethereum and Binance’s BNB Chain.

Among the new crypto coins that were introduced are “Queen Elizabeth Inu,” “Queen Doge,” “God Save The Queen,” “London Bridge Is Down,” “Queen Grow,” “Rip Queen Elizabeth,” “Elizabeth II,” and “Queen Inu II.” Other tokens with the name of the next king, King Charles III, have also appeared. According to DexScreener, at least 40 separate meme coins appear to have been produced in the previous six hours.

The most liquid tokens, Save The Queen and Queen Elizabeth Inu, have already processed trade volumes of around $700,000 and $200,000 since their debut. At the time of writing, the price of Queen Elizabeth Inu is up 1,517%, while it has increased by 23,271% on Binance Smart Chain and 3,708% on Uniswap. Prices are incredibly unstable and exceedingly unlikely to persist.

The “Queen Elizabeth 69 Years NFT” NFT set has reportedly been produced. One image is said to represent each year of the Queen’s reign in the collection. The project’s aims should be questioned because Elizabeth II reigned for 70 years, not 69.

The crypto community, typically known for its gallows humor, mainly reacted negatively to the initiatives. When told about the NFT collection, NFT aficionado ThreadGuy said, “You’re going to hell.” Trader Byzantine General declared, “We’ve got to stop this crypto stuff.”

In 1926, Queen Elizabeth was born. She was the longest-reigning British monarch in history and passed away in Balmoral Castle at 96.

Continue Reading

ART & COLLECTABLES

One crypto sector, according to billionaire Chamath Palihapitiya, is experiencing a classic bubble cycle

One crypto sector may be going through a typical hype cycle, according to billionaire investor and software entrepreneur Chamath Palihapitiya.

Published

on

In a new episode of the All-In podcast, the CEO of Social Capital discusses the sharp decline in trading volume in the non-fungible token (NFT) market.

Palihapitiya offers Coachella and Burning Man as examples of major music festivals that strive to be distinctive but may wind up being mostly the same.

The billionaire contrasts NFTs and the overall art market with the two music events.

“I do believe that there is something going on; the simplest way to explain this is with the Burning Man/Coachella scenario. Many of these things are similar, but when some people approach anything new, they are too insecure to accept that it is similar to another item, so they spend a lot of time attempting to convince you that it is different. When someone says that a time is different, it’s probably not that different, as stated in the Warren Buffett quote, is an example. Or consider the other famous historical adage, “Things don’t always repeat in history, but they rhyme.”

All of this is meant to imply that, aside from major advances in science, not much new has been discovered recently. We keep repeating the same patterns, and one of them is the social capital that comes from making certain decisions and then having those decisions validated by others in order to feel valuable. And this occurred in NFTs, as well as, I’m sure, in the initial stages of several artistic movements. These events are more comparable than dissimilar because they have presumably occurred in a number of other markets as well.

Burning man and Coachella are same. The art market and NFTs are both the same. It doesn’t need to be unusual; you can simply appreciate it because you think it’s cool. I would just take it with a grain of salt and tell anyone who comes to you asking why it’s so different.

DappRadar reports that earlier last week, trading volume on popular NFT marketplace OpenSea reached a one-year low.

Continue Reading

Trending

bitcoin
Bitcoin (BTC) $ 18,906.20 0.22%
ethereum
Ethereum (ETH) $ 1,306.06 1.05%
tether
Tether (USDT) $ 1.00 0.08%
chiliz
Chiliz (CHZ) $ 0.260473 3.31%
enjincoin
Enjin Coin (ENJ) $ 0.461514 1.92%
decentraland
Decentraland (MANA) $ 0.701012 1.73%
flow
Flow (FLOW) $ 1.65 1.70%
the-sandbox
The Sandbox (SAND) $ 0.868069 2.91%
wax
WAX (WAXP) $ 0.085752 2.15%
ecomi
ECOMI (OMI) $ 0.001254 0.42%