Axie Infinity guide: how the NFT game, AXS, and SLP economy work

Learn how Axie Infinity uses NFT Axies, AXS, and SLP so you can understand gameplay rewards, Ronin sidechain costs, and major ecosystem risks.

Introduction

Axie Infinity is a blockchain game where players collect, battle, and breed digital creatures called Axies. Each Axie is a non-fungible token (NFT), which is a unique digital asset recorded on a blockchain. Axie Infinity uses the Ethereum blockchain and the Ronin Network sidechain to record ownership and process in-game transactions.

Sky Mavis, a studio based in Ho Chi Minh City, Vietnam, launched Axie Infinity in 2018. The game combines turn-based card battles, breeding mechanics, and an open NFT marketplace where players trade Axies and land plots. Players earn cryptocurrency tokens through gameplay, mainly Axie Infinity Shards (AXS) and Smooth Love Potion (SLP), which trade on public markets.

Axie Infinity reached more than 2.7 million daily active users at its peak in 2021 and recorded over 4 billion USD in marketplace volume before usage and profitability dropped sharply. As of January 2026, AXS trades around 2.4–2.9 USD per token and SLP trades around 0.0009–0.0010 USD, far below 2021 levels. The ecosystem now includes three main game modes (Origins, Classic, Homeland), a two-token economy, and infrastructure on the Ronin Network sidechain.

How does Axie Infinity work?

Axie Infinity uses a gameplay loop where players collect Axies, battle opponents, breed new Axies, and trade them on a marketplace. Each Axie is an NFT stored on a blockchain, so players own the digital creature and trade it without Sky Mavis intervention. An NFT is a unique blockchain token that represents a specific digital item; unlike fungible tokens such as Bitcoin, each NFT has distinct properties. Battles use turn-based card mechanics where teams of three Axies face other players or computer-controlled opponents.

Each Axie has six body parts: eyes, ears, horn, mouth, back, and tail. Four parts (horn, mouth, back, tail) produce battle cards that define the Axie's combat abilities. Each battle card has attributes for damage, shield, and sometimes healing or special effects such as energy gain. Players build teams by combining body parts and cards to form offensive or defensive strategies.

Four stats define Axie performance in battle: Health, Speed, Skill, and Morale. Health measures how much damage an Axie absorbs before defeat. Speed determines turn order during each round. Skill increases total damage when a player uses combo attacks with multiple cards in one turn. Morale raises critical hit chance and influences the number of "last stand" ticks an Axie receives before leaving the battlefield.

Axies belong to nine classes that interact through a rock–paper–scissors system. Class advantages and disadvantages modify damage by about plus or minus 15 percent in many matchups. Players who understand class matchups, card effects, and stat distributions build stronger teams and win more battles.

What are Axies?

Axies are NFT-based digital pets that use the ERC-721 token standard on the Ethereum blockchain. ERC-721 defines how unique tokens function on Ethereum, so each Axie keeps a distinct on-chain identity. This structure gives players direct ownership of Axies instead of storing them solely on a game server. Players sell, trade, or transfer Axies through the official marketplace or third-party platforms that support Axie NFTs.... Each Axie has six body parts: eyes, ears, horn, mouth, back, and tail. Four parts (horn, mouth, back, tail) generate the cards used in battles. Breeding passes genetic traits from parent Axies to offspring, which affects body parts, appearance, and card abilities. Rare body parts, strong cards, and efficient stat distributions increase an Axie's trading value on the marketplace.

The breeding system limits each Axie to seven total breeds. After seven breeds, an Axie becomes sterile and cannot produce new offspring. This limit slows population growth and supports some scarcity in the Axie supply. Axie prices depend on class, body part rarity, stats, and remaining breed count, with "zero-breed" Axies usually priced higher because they retain full breeding potential.

Understanding AXS and SLP tokens

Axie Infinity uses a two-token economy consisting of AXS (Axie Infinity Shards) and SLP (Smooth Love Potion). AXS functions as a governance and staking token, while SLP functions as a gameplay utility token primarily used for breeding Axies. Both tokens trade on cryptocurrency exchanges and experience substantial price volatility.

AXS (Axie Infinity Shards)

AXS is the governance token for the Axie Infinity ecosystem and has a maximum supply of 270 million tokens. Token holders vote on governance proposals, stake AXS for reward distributions, and use AXS as part of breeding costs. Staking means locking AXS in a smart contract for a period in exchange for reward tokens.

As of January 2026, AXS trades around 2.4–2.9 USD, with estimates near 2.47 USD on some price feeds. Circulating supply stands around 168 million AXS, which equals roughly 62 percent of the 270 million maximum. AXS traded near 155–165 USD during its November 2021 all-time high, so the current price reflects a decline of more than 98 percent.

SLP (Smooth Love Potion)

SLP is a utility token that players earn from gameplay and spend mainly when they breed Axies. SLP uses the ERC-20 token standard, which defines fungible tokens on Ethereum. Unlike AXS, SLP has no fixed maximum supply, so total supply expands when players earn more SLP than breeding burns.

Players earn SLP from daily quests, Arena battles, Adventure stages, and Gauntlet Mode in Axie Infinity Origins. As of January 2026, SLP trades around 0.0009–0.0010 USD, far below its 2021 peak of about 0.40 USD. Sky Mavis halted SLP emissions in Origins in early 2026 to reduce inflation, which cut daily SLP output by more than 30 percent according to exchange reports.

How to get started with Axie Infinity

New players follow five main steps: create a Ronin Wallet, register an account, download the game, use free starter Axies, and optionally purchase NFT Axies.

Step 1: Create a Ronin Wallet... Players install the Ronin Wallet browser extension from the official website or download the mobile application from app stores. The wallet setup process generates a seed phrase, which is a 12-word recovery code that restores the wallet on a new device. Users store this seed phrase offline and never share it, because anyone with the phrase can move all funds.

Step 2: Register an Axie Infinity account

Players visit app.axieinfinity.com and register using an email address and a display name. The site prompts them to connect the Ronin Wallet, which links blockchain assets to the game account.

Step 3: Download the game client

Players download Axie Infinity Origins through Mavis Hub for PC or through mobile distribution channels for iOS and Android. Origins became the primary entry game mode from 2024 onwards.

Step 4: Use free starter Axies

Origins provides several free starter Axies that players use to complete tutorials and early Adventure stages. These Axies do not exist as NFTs, so players cannot trade or breed them. Starter Axies help players learn battle mechanics and basic strategies before spending money.

Step 5: Purchase NFT Axies (optional)

Players who want to earn cryptocurrency or access full features purchase at least three NFT Axies from the official marketplace at app.axieinfinity.com/marketplace. The marketplace accepts Wrapped Ether (WETH), AXS, and Ronin (RON) tokens transferred through the Ronin Bridge from Ethereum or acquired on exchanges that support Ronin assets. Strong competitive Axies with rare parts and high stats often cost significantly more than the cheapest "floor" Axies.

What are the different game modes?

Axie Infinity currently includes three main game modes: Origins, Classic, and Homeland. All three modes use the same NFT Axies and share AXS and SLP economics, but each mode uses different gameplay systems.

Axie Infinity Origins

Origins is a turn-based card battler with real-time matchmaking and seasonal leaderboards. Players build three-Axie teams and queue for Arena battles against other players or run Adventure stages against computer-controlled enemies. Origins introduced mechanics like Meta Morph, which temporarily modifies stats; Part Evolution, which changes body parts during battles; and Gauntlet Mode, which offers higher difficulty and SLP rewards.

Origins includes a progression system with ranks, rewards, and rotating seasonal formats. Free starter Axies and Gauntlet Mode support experimentation without immediate NFT purchases, but only NFT Axies participate in full economic features such as breeding and marketplace trading.

Axie Infinity Classic

Classic retains the original battle system that defined Axie Infinity between 2018 and 2021. The mode uses energy systems, critical hits, and combo mechanics that long-term players recognise from earlier seasons. Classic includes Guild Wars, regional esports tournaments, and the Axie World Cup competition.

Classic requires three NFT Axies to join and has no starter Axies. Sky Mavis maintains Classic and runs events but focuses new development mainly on Origins.

Axie Infinity Homeland

Homeland is a land management and strategy game that uses land plot NFTs within the Axie ecosystem. Players manage land plots, gather resources, craft items, and build structures. Homeland remains in pre-beta status without a final release date as of January 2026.

Landowners may delegate land access to other players through a sharing system that splits in-game output. Homeland adds Avatar Mode, where players control character avatars exploring the land, separate from Axies used in battles.

How does play-to-earn work in Axie Infinity?

Play-to-earn is a model where players earn cryptocurrency for in-game actions such as winning battles or completing quests. Axie Infinity uses this model through SLP and AXS rewards. Early in 2021, some players in countries such as the Philippines earned more than local minimum wages using this system before token prices dropped.

Players earn SLP through several gameplay channels:

• Daily quests: complete tasks linked to Adventure wins, Arena wins, and check-ins for SLP rewards.
• Arena battles: win ranked matches to receive SLP based on rank and matchmaking rating.
• Adventure mode: clear campaign stages with a daily SLP cap near 100 tokens.
• Gauntlet Mode: finish high-difficulty challenge runs in Origins for higher SLP payouts.... Competitive players earn AXS by finishing in top positions on seasonal leaderboards. AXS rewards can reach thousands of tokens for top-ranked players during major seasons. Players who stake AXS in designated contracts also receive AXS reward streams paid from ecosystem allocations.

Token price declines sharply reduced real-world income from these rewards. AXS fell from about 155–165 USD in November 2021 to about 2.4–2.9 USD in January 2026, which equals a drop of more than 98 percent. SLP fell from about 0.40 USD to about 0.0009–0.0010 USD in the same period, or more than a 99 percent decline. Players now need high skill, time investment, and efficient teams to earn amounts that cover hardware or internet costs.

What is the scholarship program?

The scholarship program is a lending model where Axie owners (Managers) lend Axie teams to players (Scholars) who cannot buy their own teams. A standard team uses three Axies, which the Manager keeps in a Ronin Wallet while the Scholar receives game account access. Scholars play using these Axies and generate SLP, which both sides split according to a private agreement.

Typical revenue splits range between 40/60 and 70/30, usually favouring the Scholar as token prices declined. For example, a 60/40 split assigns 60 percent of SLP to the Scholar and 40 percent to the Manager. Managers earn passive income from idle Axies, while Scholars join the game without an initial NFT purchase.

Scholarships introduce several risks. Sky Mavis bans multi-account setups where several accounts share one device or IP address, because those patterns break game rules. Banned accounts lose access to Axies and earnings. Scholarship agreements also rely on trust because they usually use off-chain contracts or informal discussions rather than blockchain-enforced revenue splits. Declines in AXS and SLP prices since 2021 reduce earnings such that many Scholars earn less than minimum wages in developed economies.

What is the Ronin Network?

The Ronin Network is an Ethereum sidechain that Sky Mavis built for Axie Infinity and related games. A sidechain runs alongside a main blockchain and connects through a bridge contract that transfers assets between chains. Sky Mavis launched Ronin in February 2021 to cut Ethereum gas fees and shorten confirmation times.

Ronin processes Axie transactions such as Axie trades, land transfers, and token transfers with lower fees than Ethereum. Many transactions cost less than 0.01 USD, whereas Ethereum transactions often cost between 5 and 50 USD during high congestion. Blocks on Ronin confirm within seconds, which supports frequent marketplace activity and gameplay-related token transfers. The Ronin Wallet integrates directly with the Axie marketplace and game clients so players manage Axies, land, and tokens in one interface.

In March 2022, attackers linked to the Lazarus Group compromised Ronin validator nodes and drained about 625 million USD from the bridge. Validator nodes are servers that sign and validate transactions; once attackers control enough validators, they approve fraudulent withdrawals. Sky Mavis raised 150 million USD in external funding, used treasury funds, and repaid all affected users.

After the hack, Sky Mavis increased the number of validators, added more third-party operators, and deployed monitoring tools for suspicious activity. Ronin has not reported another incident of similar scale between mid-2022 and January 2026. The network still processes most Axie Infinity transactions and hosts additional Web3 games.

What are the risks of playing Axie Infinity?

Axie Infinity involves several risk categories: price volatility, upfront cost, game balance shifts, and structural criticisms of the economic model. Players who spend money on Axies or tokens take on exposure to these risks.

Risk 1: Market volatility

AXS dropped from an all-time high near 155–165 USD in November 2021 to around 2.4–2.9 USD in January 2026, a loss of over 98 percent. SLP dropped from about 0.40 USD to about 0.0009–0.0010 USD in the same period, a loss greater than 99 percent. These declines reduce the fiat value of SLP and AXS rewards relative to 2021. Token prices still change quickly because they trade on open cryptocurrency markets.

Risk 2: Initial investment cost

Competitive Axie teams with strong stats and rare parts can cost hundreds or thousands of USD, depending on market conditions. Cheaper "floor" Axies cost far less but rarely perform at high competitive levels. Scholarship models reduce upfront cost but split earnings, which lowers the Scholar's net income. Free starter Axies in Origins do not generate token rewards, so they do not remove financial barriers for earning.... Risk 3: Meta shifts and balance changes

Sky Mavis releases patches that modify card values, stats, and mechanics, which change the "meta" or dominant strategies. Axies that win frequently before a patch may underperform after changes. Players who spent significant funds on specific builds risk holding weaker teams after a few updates. Staying competitive requires regular monitoring of patch notes and community strategy discussions.

Risk 4: Critical perspectives on the model

Several commentators describe Axie Infinity's early economics as resembling a pyramid structure because returns for existing players relied heavily on new player spending. New players bought Axies from existing players at high prices during 2021, which supported play-to-earn income until demand slowed. The model also includes pay-to-win elements because players who spend more on strong Axies gain competitive advantages. Many analysts therefore treat Axie Infinity as speculative entertainment rather than predictable employment.

FAQ

References / sources

• 1. CoinPaprika – Axie Infinity (AXS) and Smooth Love Potion (SLP) price and market data.
• 2. MetaMask price pages – AXS and SLP live prices, recent ranges, and all-time high references.
• 3. Priori Data – Axie Infinity player counts, usage trends, and marketplace volume statistics.
• 4. Sky Mavis documentation and Axie Infinity ecosystem materials – gameplay, tokenomics, and Ronin Network design details.
• 5. News coverage on Axie Infinity user decline, token performance, and the Ronin bridge exploit.