Axie Infinity Makes Radical Changes to SLP Tokenomics.

Axie Infinity has announced significant updates to its in-game token, Smooth Love Potion (SLP). While the total supply is now capped at 44 billion, a buyback and stability fund has been established to preserve SLP's value in conjunction with a deflation target.

Axie Infinity's popular blockchain game is undergoing substantial changes in SLP tokenomics. The total supply of SLP is now capped at 44 billion, stemming from the game's narrative of a crucial ingredient for SLP production being lost due to a sudden winter frost. The current supply hovers around 41.4 billion. This limitation aims to control SLP's supply and prevent inflation.

For every 10 SLPs burned (consumed in the game), 2 SLPs will be added to a new fund. This fund, starting with 60,000 USDC from Axie Infinity, is designed to maintain the token's value by buying back SLP if its value decreases or selling it if it rises too much.

In contrast to other currencies typically targeting a 2% inflation rate, SLP will focus on a 2% deflation target. This approach is intended to gradually increase the value of SLP over time, fostering consistent demand for the token and balancing its availability.

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