Token's Price Drop Illustrates Challenge in Play-to-Earn Gaming
source link: https://news.slashdot.org/story/22/04/12/197207/tokens-price-drop-illustrates-challenge-in-play-to-earn-gaming
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Token's Price Drop Illustrates Challenge in Play-to-Earn Gaming
Follow Slashdot stories on Twitter
binspamdupenotthebestofftopicslownewsdaystalestupid
freshfunnyinsightfulinterestingmaybe
offtopicflamebaittrollredundantoverrated
insightfulinterestinginformativefunnyunderrated
To access the game, players need once valuable NFTs called Axies. Axie owners can breed more Axies with their Axies, but they need to spend SLP to do so. Users spend SLP in the game and it gets destroyed, decreasing the supply. That's supposed to help maintain the price, but there's been too much earning and not enough burning. The token has been in a long fall since the peak of its strength last July, because too few players are using SLP to make more Axies, analytics firm Naavik contends.
-
›
by Powercntrl ( 458442 ) on Tuesday April 12, 2022 @05:34PM (#62441526)
To access the game, players need once valuable NFTs called Axies. Axie owners can breed more Axies with their Axies, but they need to spend SLP to do so. Users spend SLP in the game and it gets destroyed, decreasing the supply.
Congratulations, you've just made less sense than a Rick and Morty inter-dimensional cable skit.
-
They're combining synergies in a value-added, consumer-driven new marketspace.
-
-
Deflation leading to hoarding of currency rather than spending ("earn instead of burn"), leading to a dropoff in economic activity, is a classic pattern in economics. Perhaps the most-discussed (and argued about) example in the literature is the case of the Capitol Hill Babysitting Co-op. [wikipedia.org]
-
-
As far as I know, having read some about this game, those players don't actually get the tokens anyway. They are being paid by people who own the account to play the game. The account owner converts the tokens to another crypto or to USD.
Hard to see how it's a game really. Players playing it for minimum wage to feed themselves rather than for entertainment. Account owners just in it for the $
-
-
That is the exact opposite of what is happening here. The value of the currency is declining (i.e., inflation, not deflation) and rather than hoarding, the problem is the market is flooded.
-
Good point. It does seem that the company tried to create deflationary expectations, and people hoarded in part as a result of that. The ultimate outcome, though, yeah, is hardly deflationary.
-
Economics always forgets that entropy cannot be reversed.
-
-
-
Yep. And it also heavily skews the rewards towards those that have and hold, rather than those that earn and spend. So the rich get more and the ones that aren't rich yet have to climb an ever steeper mountain. And yet some people want cryptocurrencies to have this property. Well, there's a reason we don't want it. It kills the economy.
An older example is the hoarding of gold by the church in the Middle Ages. The most positive influence here were the Vikings who looted those churches and then put the gold b
-
-
-
Indeed, they've seem to have ignored a fundamental tactic: Why make more Axies? You've given one reason. But the real question is why choose SLP over Axies? Presumably, turning-up is something the players will do anyway, guaranteeing more SLP, while making Axies has lost its appeal. One sees this in 'living' games: Where the goal is calculating how the latest expansion pack changes the weaknesses and strengths of available maneouvres. When the game runs out of expansion packs, everyone leaves.
-
-
Axie Infinity? Never heard of it.
Smooth Love Potion? Never heard of it.So it's actually pay-to-play, not play-to-earn?
-
There are national economies based on it so that you have never heard of it says more about you than about the game.
My company has an office in Quezon City, and we've had employees quit their day job to focus on playing Axie Infinity for profit.
It starts as pay-to-play and then transitions to play-to-earn as you build up resources.
Since the later payouts are dependent on an inflow of new players, it is a pyramid scheme.
-
Sure, and Liechtenstein is a country, but it's not generally on my radar.
Not going to lie; I had to look that one up.
And I've even been to the Philippines, but it is a big place!We got there in the end. No wonder I've never heard of it.
-
I'm pretty sure the fact that employees left his company to play a game for a living says more about his entire schtick than anything else.
-
-
-
-
Why is this news? P2E has been around for ages.
Eve Online has Plex (2008), World of Warcraft has WoW Token (2015).
Stop monetizing the shit out of games. We just want to play them for fun, not have a second job.
-
The issue is the cost of SLP. It might take you 12 weeks or more to earn enough SLP to breed a new Axie. How much is 12 weeks of a person's time worth?
You can buy an Axie right now in the marketplace for way less than the value of 12 weeks of time. Why the fuck would you spend SLP to breed? What else can you do with SLP? Almost nothing, try to flip it at an exchange for cash or some other token.
With a flooded marketplace that has lower prices and nothing productive to do with SLP it no wonder its worthless
-
Seem like the author isn't aware they were "hacked" i.e. exit scam on March 25th (or earlier, the funds were moved about a week earlier).
The token doesn't hold value because there's no longer any value behind it. Duh.
Recommend
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK