Ronin network and Sky Mavis have introduced the AxieDAO token burn that allows users to burn Smooth Love Portion.
Ronin network has created a token sink to burn SLP as requested by tournament organizers as a way to return order to the ecosystem and help balance the economy.
Ronin network has introduced the AxieDAO token burn that allows users to burn Smooth Love Portion. This feature was deployed due to requests by tournament organizers so that they could host tournaments with an SLP buy-in that gets burned to help balance the economy.
Smooth Love Potion (SLP) is an ERC-20 gaming token in the popular Axie Infinity. It has an unlimited supply and is the primary source of income for Axie Infinity gamers. Additionally, within the Axie Infinity ecosystem, players can use SLP to breed digital pets called Axies which are sold on the marketplace as NFTs to other players or traded on crypto exchanges like Binance.
Players can complete daily quests to earn SLP, battle other players in the Arena (PvP), or fight in the Adventure mode (PvE). There is a limited amount of SLP players can earn per day, and the SLP used for breeding will be burned once a new Axie is created.
SLP has a burning mechanism that involves burning the SLP tokens forever after each Axie breeding. Axies can breed a maximum of 7 times each and as the breed count gets higher, more SLP is required.
As players can only farm a limited amount of SLP in the game per day, the token demand is expected to grow as players try to get ahead of the breeding game. The SLP price therefore varies according to the forces of supply and demand.
Ronin network and Sky Mavis have faced several challenges in the past weeks ranging from immense price volatility to the exploit on the Ronin validator nodes for Sky Mavis which led to a loss pegged at 173,600 ether and 25.5 million in USDC, currently worth over $625 million.
Tournament organizers hope that the consequence of burning the token will positively affect the token’s price and the overall economy of the game.