Axie Infinity Reduces SLP Emissions to Prevent "Collapse"

Axie Infinity Recently Adjusted the Tokenomics of SLP to Prevent its Economy from Imploding for Context.

Smooth Love Potion (SLP) is a crypto token earned by Axie Infinity players. It's required to breed in game avatars which are known as axes. Any SLP used for breeding is burned. Now until recently SLP minting was outpacing SLP burning by a factor of four.

This flood of SLP supply caused its price to crash in the absence of demand from breeders in turn. This caused Axie Infinity players to leave for greener pastures since their play to earn profits were cut resulting in the first decline in user activity. 

Since the game's release the Axion affinity team noticed this and tweaked SLP's Tokenomics to reduce issuance and bring it back in line with the demand coming from Axi breeders. This caused SLP's price to explode and Axie Infinity user growth is likely to follow on the prospect of renewed play to earn profits. 

Its game economy is a perfect parallel to the real world economy because both rely on constant growth whereas Central Banks control the issuance of money the Axie Infinity team controls the issuance of SLP and this makes it the perfect sandbox to test monetary theories.

Many people around the world currently rely on Axie Infinity for income because of the pandemic and this means any economic experimentation can have very real economic consequences funnily enough Axie Infinity has proven yet again that cryptocurrency projects are more responsible with monetary policy than Central Banks which continue to print fiat currencies at the expense of the average person.