Axie Infinity: AXS Governance Token & Treasury

Axie Infinity Shards (AXS)

Axie Infinity Shards (AXS) are ERC-20 governance tokens for the Axie Universe. AXS holders will be able to claim rewards if they stake their tokens, play the game, and participate in key governance votes. Players will also be able to earn AXS when they play various games within the Axie Infinity Universe and through user-generated content initiatives.

The goal of the token is as follows:

  • To reward players for interacting with Axie Infinity while simultaneously incentivizing them to hold on to their tokens so they can claim additional rewards.
  • To decentralize the ownership and governance of Axie Infinity.

Community Treasury

Early 2021, the Community Treasurey will go live. The treasury will hold revenue generated by Axie Infinity, as well as a portion of staking rewards. The treasury will be governed by AXS stakers, once the network has been sufficiently decentralized.

For now, there is a 4.25% marketplace fee as well as a fee of 4 AXS for breeding Axies that goes into the Community Treasury.

Marketplace Fees

You can check out the Axie Marketplace Dashboard, which shows the total volume sold over the last day, the last 7 days or the last month. Below is a screenshot on 28th of April, 2021.

This means that a total volume of 150.86 ETH has been traded in one day. The marketplace fee is 4.25%, which means that 6,4 ETH would have been deposited to the Community Treasury over the last 24 hours. This doesn’t take into account the Breeding Fees.

Delphi Digital has proposed sending 5% of the Community Treasury to stakers each week. Besides fee-sharing, here are some additional factors that will affect the value of AXS. Below information is taken from this Medium post.

  • Monetary premium for AXS.
  • Additional utility such as marketplace fee discounts and access to certain exclusive sales.
  • Use of the Community Treasury. For example, the Treasury funds could be seen as a sovereign wealth fund for the Axie Universe. Fund managers or systems such as YFI could be appointed to grow the value of the assets stored inside the Treasury

Once the Treasury is live, it’s likely that the Axie community will eventually turn its eye towards new monetization strategies. Here are a few potential paths:

  • Revenue from cosmetic sales. While skins for parts could be harder to introduce, things like rare pets, skins for summons, and animations could be a hit. 
  • Axie tattoos & emotes. Rare emotes would be awesome for things like the arena and land play.
  • Licensing cuts from 3rd party content built on top of Axie.
  • Tournament entry fees and tickets.
  • Marketing fees from other organizations. Rather than donating tokens to “seasons” as partners have done in the past, sponsors can directly put assets into the Treasury. These contributions can be distributed through a lottery format to stakers/voters.

Leave a Comment

Your email address will not be published. Required fields are marked *