Axie Infinity’s SLP Burn Rate Exceeds Minting Rate for First Time Since August 2021

Smooth Love Potion (SLP), one of the two core tokens of the Axie Infinity on-chain gaming ecosystem, underpins its tokenomics. As such, GameFi enthusiasts are watching its metrics closely.

Axie Infinity’s SLP burn/mint ratio becomes negative

Axie Infinity (AXS) enthusiast @maxbrand99 has taken to Twitter to demonstrate the unusual pattern of the game’s tokenomics. According to his observations, the Axie Infinity team destroyed more Smooth Love Potion (SLP) than it minted over the last days.

For the first time since 8/4/21 @AxieInfinity has burned more SLP than was minted. I also added numbers for the amount of SLP Burned since the event started and the average SLP cost / Axie bred #LunacianSummer pic.twitter.com/BP1KP2G3jA

— Maxbrand99.eth (@maxbrand99) July 15, 2022

This situation was registered on July 14, 2022. In his tweet, @maxbrand99 stated that it was previously registered in August 2021, almost a year ago.

The burning rate for SLP tokens has been surging since June 26, 2022. Meanwhile, in the past 10 days, this process goes hand in hand with the SLP minting rate decrease.

It should be noted that on July 14, Axie Infinity started its special “breeding” campaign, Lunacian Summer. With this campaign active, Axie Infinity fans can get exclusive “skins” for their Axies.

SLP still 99% down from its ATH

Previously, such campaigns were launched in Q3, 2018, and Q3, 2019; enthusiasts were able to create unique “Summer Axies” and use them in game mechanisms.

Following Lunacian Summer’s launch, the price of the SLP token jumped by more than 17.6%, from $0.0034 to over $0.004. However, it remains one of the worst performers among the GameFi heavyweights: it declined by 99.1% since the all-time high registered in May 2021.

As covered by U.Today previously, Bloomberg Crypto published a longread covering the rise and fall of Axie Infinity’s tokenomics. One of its distracted enthusiasts claimed that many of its full-time players could have worked in McDonald’s and earned more than by playing this overhyped game.