# Axie Infinity - Blockchain-based Play-to-Earn Gaming

> 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.

**Sector:** Tertiary sector · **Industry:** Gaming and esports · **Organisation:** Sky Mavis · **Maturity level:** Production

Canonical URL: https://www.sapientblock.com/en/use-cases/sky-mavis-spielend-echtes-einkommen-erzielen

## 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.

## Benefits

- Gaming companies can open new revenue streams through NFT sales and transaction fees.
- 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.
- 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.
- Developers expand their skills with cutting-edge blockchain technologies and become sought-after specialists.

## Challenges

- Companies must comply with complex regulatory requirements for cryptocurrencies and NFTs in various countries.
- Players bear the risk of value fluctuations of their digital assets and possible total losses due to hacks or technical issues.
- 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.
- 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.

## Sources

- [Wikipedia - Axie Infinity](https://de.wikipedia.org/wiki/Axie_Infinity)
- [HelloSafe - Axie Infinity Investment Guide](https://hellosafe.ch/de/investieren/crypto/coins/axie-infinity)
- [OMR - Axie Infinity Inflation Problems](https://omr.com/de/daily/axie-infinity-inflation)
- [Blockchainwelt - Axie Infinity Guide](https://blockchainwelt.de/axie-infinity/)