AXS is the governance and staking token of Axie Infinity, the NFT-based battle game developed by Sky Mavis that created the play-to-earn (P2E) revolution. In 2021, Axie became the most-played blockchain game in history, with millions of players — particularly in the Philippines, Venezuela, and Indonesia — earning a living wage by breeding and battling small cartoon creatures called “Axies.” AXS holders govern the Axie ecosystem (including the community treasury holding billions in ETH), while the separate SLP (Smooth Love Potion) token is earned in-game. Sky Mavis built the Ronin sidechain to handle Axie’s scale.
How It Works
Gameplay:
Players need 3 Axie NFTs to play. Axies battle in turn-based strategy matches. Players earn SLP (Smooth Love Potion) for winning matches. SLP is used to breed new Axies. This created an economy: dedicated players (especially in developing countries) earned SLP, sold it for USD, and funded their livelihood.
AXS governance:
- AXS holders vote on Axie Infinity’s community treasury (which accumulated $3B+ in assets at peak)
- Staking AXS earns both AXS rewards (inflation) and a portion of marketplace fees
Ronin sidechain:
Axie Infinity outgrew Ethereum (gas fees would cost more than game earnings), so Sky Mavis built the Ronin sidechain using a Proof of Authority model with ~9 validators. Ronin became one of the most actively used blockchains by transaction count in 2021.
Scholarship model:
Many Axies cost hundreds to thousands of dollars each. “Scholars” (players who couldn’t afford Axies) borrowed NFTs from “managers” and split SLP earnings — creating a decentralized employment relationship unique to Web3.
Tokenomics
| Allocation | Amount | Notes |
|---|---|---|
| Play and earn rewards | 20% | Distributed to active players |
| Ecosystem fund | 21% | Sky Mavis controlled |
| Staking rewards | 29% | Distributed to AXS stakers |
| Team | 21% | 4-year vesting |
| Advisors | 0.9% | Vesting |
| Public sale | 4.3% | Initial distribution |
| Private sale | 3.8% | Early investors |
Max supply: 270,000,000 AXS. Circulating supply grows as staking rewards vest and play-to-earn distributions unlock.
Use Cases
- Governance — AXS holders vote on rule changes, treasury spending, and game economics
- Staking rewards — Staked AXS earns more AXS from the rewards pool
- Breeding — Some Axie breeding mechanics involve AXS fees
- Platform currency — Used in Sky Mavis’s marketplace and upcoming Axie Infinity titles
History
- 2018 — Sky Mavis founded by Trung Nguyen; Axie Infinity concept developed
- Nov 2020 — AXS token launches
- 2021 — Axie becomes a global phenomenon; daily active users peak at ~2.7M; the Philippines sees widespread adoption as a “scholarship economy”; AXS reaches ATH of ~$165
- Mar 2022 — Ronin bridge hack: North Korean state-sponsored hackers (Lazarus Group) steal ~$625M in ETH and USDC from the Ronin bridge — the largest hack in crypto history at the time
- 2022 — AXS and SLP prices collapse; DAU falls from 2.7M to under 50,000 as inflation and bear market kill P2E economics
- 2023 — Axie Infinity Origins (a rebuilt game) launches; Sky Mavis focuses on sustainable game economics
- 2024 — Sky Mavis pivots to being an infrastructure company for blockchain gaming; Ronin opens to third-party games
Common Misconceptions
“Play-to-earn failed.” The 2021 model (earn-while-playing regardless of fun) was economically unsustainable. Sky Mavis pivoted to fun-first gameplay with earning as a secondary benefit. The broader lesson was that games must be fun first.
“The Ronin hack means Axie is unsafe.” Sky Mavis rebuilt Ronin security extensively after the hack, expanding the validator set, implementing multi-sig requirements, and partnering with Chainlink for additional security. The rebuilt Ronin continues processing millions of transactions.