Axie Infinity - Blockchain-based Play-to-Earn Gaming
Sector: Tertiary sector · Industry: Gaming and esports · Organisation: Sky Mavis · Maturity level: Production
Axie Infinity is a blockchain-based game by Sky Mavis that has been using Non-Fungible Tokens (NFTs) since 2018 to give real ownership rights to virtual creatures called Axies. The game reached over 2 million active players and became the first NFT game with 1 billion USD trading volume. Sky Mavis achieved revenue of 1.2 billion USD in 2021, surpassing even Candy Crush.
Documentation status
- Project status: Production
- Evidence: Evidence high
- Editorial review: Ufuk Avci, 15 April 2026
Description
Axie Infinity (Sky Mavis, founders Trung Nguyen and Jeff Zirlin, 2018) was the first mainstream play-to-earn blockchain platform. Each Axie is an NFT on the Ethereum blockchain (sidechain: Ronin). Two tokens: AXS (governance) and SLP (Smooth Love Potion, breeding utility). Players earn SLP through battles and quests; SLP can be exchanged on exchanges for Peso, USD, etc.
Axie Infinity exploded in 2021 during the COVID lockdown, especially in the Philippines (main market) and Venezuela (second largest market). In Nueva Ecija province north of Manila, people earned 15,000 Pesos (approx. $300) monthly — more than the Philippine average wage of about $200. The scholarship model enabled entry without capital: NFT owners (managers) lent Axies to players (scholars) for 50-60% profit sharing. Peak October/November 2021: 2.7 million daily users, $6–10 million daily revenue, AXS at $160/token. October 2021: Andreessen Horowitz led a $152 million Series B. Then the collapse: token inflation (new players needed to maintain value — Ponzi mechanism), SLP fell from $0.34 to under $0.005. March 2022: Ronin bridge hack — 173,600 ETH + 25.5 million USDC stolen ($625 million), later confirmed by the US government as a state-sponsored North Korean hack (Lazarus Group). Lessons: play-to-earn models need real gameplay value as a base; pure token economies without substance are unsustainable.
Perspectives
B2B — organisations perspective
For game developers and investors, Axie Infinity demonstrates how blockchain-based game ownership can create real markets and liquidity — and which pitfalls (token inflation, bridge security, regulatory risks) need managing.
B2C — consumers perspective
Players in developing countries were given the first opportunity to earn real income through playing — and players worldwide gained true ownership rights over their in-game assets, independent of the game developer.
Employees perspective
Developers must acquire new skills in smart contract programming and blockchain integration, while game designers need to understand tokenomics and decentralized economic systems. Marketing teams require expertise in cryptocurrency and NFT communities to successfully target these new audiences.
Benefits
General
- Players receive true ownership rights over digital assets and can freely trade or sell them.
- The play-to-earn model enables players to earn real income through gameplay.
- Blockchain technology provides transparency and security for digital transactions in gaming.
B2B — organisations
- Gaming companies can open new revenue streams through NFT sales and transaction fees.
B2C — consumers
- Players can convert their time and skills in the game into real income.
- True ownership rights over digital collectibles create long-term value for players.
Employees
- Developers expand their skills with cutting-edge blockchain technologies and become sought-after specialists.
Challenges
General
- Cryptocurrency volatility can affect the stability of the in-game economy and lead to hyperinflation.
- Security risks in smart contracts can cause significant financial losses, as shown by the €570 million Ronin bridge hack.
B2B — organisations
- Companies must comply with complex regulatory requirements for cryptocurrencies and NFTs in various countries.
B2C — consumers
- Players bear the risk of value fluctuations of their digital assets and possible total losses due to hacks or technical issues.
Employees
- Employees must continuously update their knowledge in rapidly evolving blockchain technologies and learn new security practices.
Technology foundation
Axie Infinity is based on the Ethereum blockchain and uses its own Ronin sidechain for better scalability and lower transaction costs. The virtual creatures are stored as ERC-721 NFTs, giving players true ownership rights and the ability to freely trade their assets.
Implementation examples
Sky Mavis Axie Infinity platform
Sky Mavis aimed to revolutionise the gaming industry by providing true ownership rights to digital assets and enabling players to earn real income through gameplay. The goal was to create a sustainable economic model that is profitable for both players and the company.
Sky Mavis developed Axie Infinity as the first successful play-to-earn blockchain game with its own sidechain infrastructure.
In 2018, Sky Mavis implemented a complete blockchain gaming ecosystem with the Ronin sidechain for scalable NFT transactions. The company created a sustainable play-to-earn model that attracted over 2 million active players and generated revenues of 1.2 billion USD in 2021. The platform integrated ERC-721 NFTs for Axies and land parcels with its own marketplace for trading.
Sky Mavis achieved revenues of 1.2 billion USD in 2021 and reached a total trading volume of 4 billion USD for NFTs.
The company solved the problem of high Ethereum transaction costs through its own Ronin sidechain and created a stable play-to-earn ecosystem. The integration of NFTs enabled true ownership rights to digital assets, which was not possible in traditional games before.
Tags
NFT, Play-to-Earn, Gaming, Smart Contracts, Sidechain, Metaverse, Cryptocurrency