Imagine you earning a very huge amount of money while playing a Pokémon-style game. How does that feel? I know it would be exciting to sit in the comfort of your home and earn crypto, which you can convert into cash in hand or at the bank. That’s why play-to-earn games are gaining more fame and acceptability everywhere.
Meanwhile, Axie Infinity is one of the top play-to-earn games trending in gaming. It provides players with a better opportunity to make as much money as possible in a day, so different age groups are signing up for the game. From tender children to older adults, the play-to-earn has the most diversified membership in the industry.
Axie infinity combines cryptocurrency and game-play. That, and many other reasons, make younger folks more passionate about playing the game. That contributes immensely to its sudden boom in recent times, recording millions of daily active users (primarily teenagers) worldwide.
The Axie Infinity boom took off in the Phillippines, whose economy severely affected the Covid-19 pandemic. Unable to work in their usual roles due to lockdown, many turned to Axie Infinity due to its play to earn nature as a source of income – and have continued to enrich players’ pockets for more than two years.
But how does Axie Infinity actually work? And what are the possible risks for young people? Read on to find out the details.
What is Axie Infinity?
Axie Infinity is a play to earn community in which players buy creatures called Axies and use them for breeding, exploring, and battling with other Axies. It is developed by the gaming company Sky Mavis and runs through the cryptocurrency Ethereum. The play-to-earn game has an 18+ age rating. Still, with its Pokémon-style design and no cage-verification process, it is visually appealing to younger children.
To play this game, you first need to buy the starter three Axies with Ethereum. Mind you, these initial Axies can cost up to $1,500 or £1,115. Axie infinity developers are currently working on creating a less expensive version of the play-to-earn game that could be free to play and available to download in the App Store or Google Play Store.
Sky Mavis has developed their digital wallet, which you can link to the game environment. Once linked, you can then buy Axies through your Ronin wallet.
There are two main ways to play to earn rewards in this game. These methods involve seeking out two different assets. One is SLP or Smooth Love Potion. You earn SLP by playing adventure games or arena matches and completing daily quests. Smooth Love Potion (SLP) is the resource required to breed Axies, and there’s an unlimited supply.
The second resource is AXS tokens. These are limited resources; there are only 270,000,000 in the game. AXS is an Ethereum token. Players holding AXS tokens have governance rights in the game, meaning they can decide about its future. If this flow continues, they may also be able to buy out Sky Mavis and run a fully decentralized economy in-game.
Players can also buy virtual plots of land in the game’s universe, called Lucia. You can sell the Axies for AXS tokens or trade them within the game. Then, you can transfer them into fiat currency.
Understanding Axies and NFTs
An Axie is a potential NFT: a ‘non-fungible token.’ Non-fungible means are irreplaceable. If you purchase an NFT, you own the exclusive URL describing it. Even if a player were to screen-shot the image of your NFT, they wouldn’t have access to replace its unique data identifier. This play-to-earn game lets you – as the owner of the NFT – possess that character, even when you’re not playing.
Scholars, managers, guilds
People have evaded the high costs of joining is to using Axie Infinity’s scholars and scheme. Managers are users that have either been playing the game since it first started or wealthy users who have been able to purchase an extensive collection of Axies.
Managers give their Axies to users who cannot afford the initial purchase price. These scholars – then play to earn rewards in the game using borrowed Axies, earning SLP and AXS tokens. In return, the manager asks for a share of what they earn. This can be from 10% to 60%. Managers and scholars can form a guild with other managers and scholars teams and take on tougher challenges.
Applications to become a scholar have become increasingly popular, as users recognize it as the easiest way of joining Axie Infinity. Click here to read about Guilds in the transition to modernity: The cases of Germany, the United Kingdom, and the Netherlands.
What else do you need to know?
As with any cryptocurrency-related venture, it’s important to remember that the value of your currency or your NFT can vary massively. Sky Mavis isn’t responsible for any money you lose if the game goes under or if the value of AXS tokens or Ethereum drops. It’s possible to put a lot of money into the game only to find that the value of your Axies has decreased, and they are not as profitable as they once were.
Axie Infinity is rated 18+. However, there is no age-verification process. When you sign up to Axie, you do so via your crypto wallet. The recommended wallet, MetaMask, allows users under 18 if they have parental permission. This is the case with other crypto wallets. Be careful that if you’ve let your child open one of these wallets, they could quickly sign up to play the game.
Children should not be playing Axie Infinity. They are vulnerable to being taken advantage of by other players. They may not fully understand the consequences of the ‘real’ money they are spending. You can also read about What Is Play-to-Earn and How to Cash Out? by visiting https://academy.binance.com/en/articles/what-is-play-to-earn-and-how-to-cash-out
The manager/scholar model
Axie Infinity is an easy way to make money without leaving home – in theory – but it’s now prohibitively expensive to even join the game unless you participate as a scholar. Playing Axie Infinity doesn’t guarantee job security. While managers are interested in creating an active community, others are likely interested in their profit. If your manager asks for a share of more than half what you make via playing, you can actually earn less than minimum wage. Often scholars are in precarious positions, and having a profit-driven manager can exploit this. Children around the age restrictions would also fall into this vulnerable category of players.
Suppose you’re willing to put in the time and effort. In that case, gaming can be a very lucrative career, something we’ve already seen with Esports players. But where this play-to-earn game differs is in the use of cryptocurrency, which is unstable. Until they turn 18, ensure that your child isn’t using Axie Infinity. They could lose vast sums of money or be taken advantage of by other players. Check out: Core business aspects of NFT play to earn games