New ‘Axie Infinity’ Ethereum Gaming Token Will Be Distributed to AXS Stakers

Simply put

• Axie Infinity plans to distribute airdropped bAXS, a new token linked to existing AXS tokens, to qualifying AXS stakers.
• bAXS will serve specific functions within the Axie economy.
• AXS has seen a 57% rise over the past month but is still down 99% from its peak.

Axie Infinity, the blockchain game where players raise and battle creatures, announced on Tuesday that it will be airdropping a new token, bound AXS (bAXS), to eligible wallets based on a snapshot taken on February 5.

This airdrop will feature 100,000 bAXS tokens, each one backed 1:1 by AXS tokens, and will go to wallets that have staked at least 10 AXS, which is around $16.90 in current token value. Players who stake 10 AXS will see their Axie score and amount staked impacting how much bAXS they receive.

Once introduced, bAXS will function like the original tokens, enabling actions such as evolving and breeding Axii monsters, as well as trading them on secondary markets. However, players are encouraged to use the new tokens specifically within the game’s economy.

“Most current AXS spending is through Axie cores, which necessitate AXS to upgrade,” stated Jeffrey Zirlin, co-founder of Sky Mavis.

“Every time an upgrade is needed for an Axie’s body part, AXS has to be spent. As we enhance the utility for these upgrades, the use of bAXS within the ecosystem should increase. With the arrival of Atia’s Legacy and Terrarium, we anticipate a surge in demand for upgrades.”

Besides the initial airdrop, bAXS will also reach players engaged in the upcoming land game, Terrariums.

“You can think of the Terrarium as the home for your Axie, where they can grow and earn through different activities,” the official description notes.

With Terrariums launching, Zirlin foresees a rise in spending for both AXS and bAXS.

“I can visualize both AXS and bAXS soaring in demand for purchasing items like terrariums and consumables for Axies,” he added.

These land-based games are anticipated to debut in the second quarter, following the bAXS launch and two different bAXS airdrops, though details on the second airdrop remain unclear.

The introduction of the bonded token comes after a busy period where AXS gained 57% in the last month, now trading around $1.55. However, it dropped about 35% in the past week, following a spike to $2.92 in late January.

Despite this uptick, the token remains down 99% from its all-time high of $164.90, set in 2021, which was spurred by the game’s Pokémon-like appeal. Daily active users peaked over 1 million, but the play-to-earn economy has faced challenges recently.

Axie Infinity is built on the Ronin network, designed by Sky Mavis for Ethereum-based gaming. The franchise is set to expand with a new MMORPG, Axie Infinity: Atia’s Legacy, first announced last year.