Axie Infinity

Axie Infinity is an on-chain game centered around NFT pets known as Axies. Players participate in its economic system by collecting, battling, and breeding Axies, with related tokens including AXS and SLP. The game operates on the Ronin network, where asset ownership is recorded on-chain. Rewards and marketplace trading are integrated, and users can trade tokens on exchanges such as Gate to manage participation costs.
Abstract
1.
Axie Infinity is the first massively successful 'Play-to-Earn' (P2E) blockchain game, pioneering the GameFi paradigm in Web3.
2.
Players collect, breed, and battle NFT creatures called Axies to earn cryptocurrency rewards (AXS and SLP tokens).
3.
Features a dual-token economy: AXS as governance token and SLP as in-game breeding utility token, creating a circular in-game economy.
4.
Exploded in popularity in 2021 across Southeast Asia, especially the Philippines, where many players used it as a primary income source, demonstrating Web3 gaming's social impact.
5.
Developed by Sky Mavis and built on Ronin, an Ethereum sidechain, to reduce transaction costs and enhance gaming experience.
6.
Despite facing challenges including the Ronin bridge hack and token economy issues, it remains a landmark project and case study in the GameFi sector.
Axie Infinity

What is Axie Infinity?

Axie Infinity is a blockchain game centered around NFT creatures known as “Axies”. Players collect, battle, breed, and trade these digital assets in an open marketplace. An NFT (non-fungible token) is a verifiable unique digital item, meaning in-game pets and items truly belong to the player.

Developed by the team at Sky Mavis, Axie Infinity initially launched on the Ethereum blockchain and later integrated its own Ronin network to lower transaction fees. The game ecosystem features battle modes (PvP/PvE), a breeding system, and marketplace trading, with player activity and asset value recorded on-chain to create an open economy.

How Does Axie Infinity Work?

Axie Infinity operates through a combination of “on-chain assets + gameplay rewards.” On-chain assets refer to your Axies and some items being NFTs, recorded on the blockchain ledger. Gameplay rewards mean you can earn tokens or items by battling or completing tasks.

In battles, players form teams of three Axies, using their attributes and skill cards in turn-based strategy matches. Victories yield in-game rewards that can be used to breed new Axies or traded on the marketplace. Breeding works like a recipe: you spend tokens and materials to produce a new NFT, with rarity and parent traits impacting the outcome.

What Are AXS and SLP Tokens Used For in Axie Infinity?

AXS and SLP are two main tokens within Axie Infinity. AXS is primarily a governance token, similar to shareholder voting rights; holders can participate in proposals and ecosystem decisions, and share in value through specific mechanisms. SLP functions as a utility token, used mainly for breeding, event participation, and some reward distributions.

Think of the relationship as “power and utility”: AXS supports governance and long-term value capture, while SLP powers everyday gameplay and consumption. The official team adjusts issuance and consumption rules across versions, such as reducing SLP output or increasing use cases, to help curb inflation (preventing excessive supply from diluting value).

How Do You Play Axie Infinity? What’s the Beginner’s Path?

Getting started involves three steps: setting up your account and wallet, acquiring assets, and engaging with gameplay.

Step 1: Prepare your wallet and account. Download and install the Ronin wallet, securely store your seed phrase (this is your key to asset recovery), then create an account on the official website and link your wallet.

Step 2: Acquire basic assets. Beginners typically need three Axies to enter standard battles. You can buy them on the official marketplace or use trial modes to learn the mechanics first. If you need tokens, purchase AXS or USDT on Gate, then exchange for desired assets. When depositing to your Ronin address, double-check network selection and transaction fees.

Step 3: Start battling and completing quests. Enter battle modes to practice team setups and card combinations; participate in daily missions and seasonal events to accumulate rewards. Further explore breeding and marketplace trading to assess costs and returns.

How Does Axie Infinity Maintain a Sustainable Economic Model?

The key lies in balancing “output, consumption, and value expectation.” Axie Infinity sustains its economy by controlling reward issuance (output), setting up breeding and item consumption (burning), as well as market trading fees and event sinks to manage supply and demand.

For example, if SLP output becomes excessive, prices tend to fall, impacting player motivation. The team adjusts seasonal rewards, quest payouts, and breeding formulas to increase SLP consumption, compressing net supply. AXS is more closely tied to long-term governance and ecosystem incentives, avoiding direct linkage with short-term rewards to reduce gameplay volatility.

Sustainability also relies on intrinsic “entertainment and competition” value. When players participate for fun, social connection, or esports rather than just earning, the economy becomes less dependent on “play-to-earn” dynamics and more like a collectible strategy game.

Why Did Axie Infinity Explode in Popularity in 2021 Then Cool Down?

Axie Infinity’s boom was fueled by strong “play-to-earn” incentives and low-fee network infrastructure. Around 2021, many players and guilds joined as gameplay rewards could be exchanged for real-world value, driving user growth and active trading.

The cooldown resulted from multiple factors: reward inflation and market corrections reduced return expectations; changes in player demographics led to weaker new demand; plus security incidents and macro trends affected overall confidence. In March 2022, Ronin’s cross-chain bridge suffered a hack; afterwards, the team strengthened validators and security protocols while rebuilding the network and ecosystem. These turning points shifted the project from “rapid growth” toward “steady reconstruction.”

What is the Ronin Network in Axie Infinity? Is It Safe?

Ronin is Axie Infinity’s dedicated blockchain network designed for “low transaction fees and fast confirmation,” optimized for high-frequency gaming interactions. Think of it as a custom-built highway with toll booths for this game, ensuring smooth transactions.

Regarding security, there has been a cross-chain bridge hack in the past (see previous section). Since then, the team has expanded validator numbers, implemented stricter permissions and monitoring, and partnered with security firms for audits. No network can guarantee absolute safety; best practices include diversifying holdings, using hardware wallets or cold backups, and staying informed about official updates.

How Do You Participate in Axie Infinity on Gate? How Should Funds and Assets Be Managed?

Participation generally involves token trading, cost management, then entering gameplay. Gate offers spot trading for AXS and SLP; users can deposit USDT or fiat currency, then buy required tokens on the spot market.

After trading on Gate, withdraw tokens to your Ronin wallet address as needed—always confirm network selection, minimum withdrawal amounts, and fees. For fund management, use Gate’s price alerts and conditional orders to time buys/sells efficiently; check if Gate’s Earn or events sections offer compliant AXS-related products before participating after assessing risks and terms.

Risk warning: Token prices are highly volatile; game rules and rewards may change; cross-chain transfers and withdrawals involve operational risks. Only download wallets or access marketplaces via official links to avoid phishing sites or fake support agents.

Axie Infinity Summary & Key Takeaways

Axie Infinity is a Web3 game combining NFT ownership, token incentives, and strategic gameplay—its core is “assets owned by players; gameplay drives value.” AXS serves governance functions while SLP supports utility consumption; Ronin provides low-fee high-frequency infrastructure. The onboarding path includes wallet setup, asset acquisition, and battle practice. Sustainable economics depend on dynamic balance between output/consumption plus intrinsic entertainment needs. Before participating, evaluate token volatility, rule changes, and security risks—use trading/risk controls effectively and stay updated on official adjustments or community developments.

FAQ

Can You Really Earn Money Playing Axie Infinity? What Are the Returns Like?

You can earn SLP tokens through gameplay in Axie Infinity, which can be exchanged for real profits on exchanges. Earnings depend on your skill level, the quality of your Axies, and market conditions. Initial investment is needed to purchase Axies—start with a low-cost team if possible and pay attention to SLP price fluctuations to avoid extended payback periods.

How Much Does a Beginner Need to Invest in Axie Infinity?

Starter funds mainly go toward buying three Axies; costs range from hundreds to thousands of dollars depending on their level and rarity. New players can choose budget-friendly Axies to get started quickly, upgrading after accumulating SLP. Platforms like Gate make it easy to buy AXS or SLP for asset management.

Can You Trade Axie NFTs in Axie Infinity? How Do You Buy or Sell Them?

Axie NFTs are tradable on the official marketplace or platforms like OpenSea; prices are set by market supply/demand. To buy, you’ll need Ethereum or assets on the Ronin network—beginners should purchase ETH or WETH via Gate first before bridging to Ronin for lower fees.

What Is the Scholarship System in Axie Infinity? Is It Suitable for Beginners?

The scholarship system allows players without startup capital to borrow someone else’s Axies for gameplay; earnings are split between player and owner. This is beginner-friendly but requires finding trustworthy sponsors—make sure you understand the sharing ratios and duration before joining to avoid unfavorable terms.

How Do Axie Infinity’s Art Style & Gameplay Differ from Regular Mobile Games?

Axie features an adorable pixel-art style with core turn-based strategic battles requiring thoughtful team composition and counter strategies. Unlike traditional mobile games, each Axie is an independent NFT asset—freely tradable for real value—so in-game assets genuinely belong to players. This ownership aspect has fueled its play-to-earn phenomenon.

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Related Glossaries
nft
NFTs (Non-Fungible Tokens) are unique digital certificates recorded on the blockchain, designed to establish authenticity and ownership of digital items, in-game assets, membership privileges, or representations of real-world assets. NFTs can be bought, sold, and transferred, with all rules and transactions governed by smart contracts that execute automatically on-chain. They are commonly found on public blockchains such as Ethereum and across NFT marketplaces, serving use cases like collectibles, trading, and identity verification.
What Is NFT
An NFT is a unique digital certificate on the blockchain used to represent ownership and provenance of a specific digital or physical asset. NFTs can correspond to images, music, in-game items, tickets, certificates, and more. Their records are publicly accessible and resistant to tampering, enabling secure trading and transfers on marketplaces. NFTs are particularly well-suited for scenarios such as proof of ownership, membership privileges, and ticketing systems that prevent scalping.
Define Guild
A guild is an online organization that collaborates around shared goals. In the crypto space, guilds often operate as DAOs (Decentralized Autonomous Organizations), using tokens or NFTs as membership credentials. Through voting and established rules, guilds manage resources, organize activities such as play-to-earn gaming, on-chain quests, educational initiatives, and research. They also participate in trading, airdrops, and community events to enhance engagement efficiency and maximize member rewards.
soulbond mtg
Soulbound tokens are a type of non-transferable on-chain credential designed to permanently link identity, qualifications, or relationships to your wallet address. Functionally similar to “non-transferable NFTs,” these tokens are minted and assigned to holders by issuers through smart contracts, serving purposes such as diplomas, membership credentials, KYC verification, event attendance, and reputation building. Holders typically cannot transfer these tokens; updates or revocations are governed by the rules of the smart contract and decisions of the issuer.
non-fungible
Non-fungibility means that each unit is unique, a concept commonly used to describe NFTs and other verifiable digital assets. It brings items such as artworks, in-game assets, event tickets, and membership credentials onto the blockchain, where unique identifiers and transaction records prove ownership. These assets support transferability, revenue sharing, and authorization. Unlike fungible assets such as cash, non-fungible assets are priced based on their specific characteristics, with wallet holdings and smart contract minting ensuring verifiable scarcity. NFT marketplaces like Gate.com's NFT section provide platforms for minting, purchasing, and secondary trading.

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