Axie Infinity Prepares for AXS Staking Launch, Community Treasury Skyrockets Past $1 Billion
Sky Mavis, the company behind Axie Infinity, is asking its community members to “abide by the laws of their home countries” after the Philippines government started investigating the play-to-earn games.
Popular play-to-earn blockchain game Axie Infinity continues to lead the protocol revenue chart, earning $125.8 million on a weekly basis. In the last three months, the project has generated more than half a billion dollars in revenue, $1.1 bln in the past six months, and $1.4 bln in the past year.
The token AXS also continues to trade above $71 and is within reach for its $82.40 ATH from less than a week back.
Amidst this, Delphi Digital made its report on Axie from the end of June public in which it noted that it was the Ronin launch that was the key catalyst for the NFT game’s explosive growth as its daily active users went to 252,000 from 38,000 in just two months.
The majority of Axie’s new users are from the Philippines and Venezuela, it added.
The community treasury of the project has also grown from less than $1 million to over $14 million at June end. In another two months, the Treasury skyrocketed to surpass the billion-dollar mark as everyone piled into the project.
In November 2020, the Axie team had shared that 100% of all fees and primary sales from the Axie universe will be deposited in the Treasury. It also said that it would also direct a portion of staking issuance, starting at 35%, and gradually taper off over time towards Community Treasury.
“We're also working with the Axie team on the upcoming launch of AXS staking. There's a meaningful amount of supply set aside for staking rewards, and the treasury itself is over $1B and growing rapidly,” said Yan Liberman, Co-Founder and Managing Partner at Delphi Digital, on Thursday.
The treasury also saw daily growth increasing from sub-100k in April to a peak of over $600k in June.
Delphi Digital projected in its June-end report that the community treasury is expected to have 15.6 million AXS and 26.6k ETH, equating to roughly $150 million at the time when the price of AXS was a mere $5 and Ether was just above $2k while currently past $3k. This, however, does not include additional AXS deposited once staking incentives go live, scheduled for a Q3 release as such could come by September end.
An estimated 24% of circulating AXS is expected to be held by the treasury by the end of the year.
AXS token holders are entitled to this treasury and, once staking goes live, will start receiving distributions and further dictate how it’s spent through governance.
“It will be interesting to see how the treasury build-up plays out, given that treasury growth will likely be higher than circulating supply expansion,” the report said.
Amidst this explosive growth, Sky Mavis, the company behind Axie Infinity, posted a statement on Twitter in regards to the reports of the government in the Philippines investigating the play-to-earn games and Axie Infinity in particular regarding the nature of tokens and because officials say the company should pay taxes on their revenue.
The Vietnamese company has asked its community members to “abide by the laws of their home countries.”
“Play-to-earn is an important shift in the nature of work; we look forward to working with physical nations (governments) on a path forward that encourages innovation and empowers gamers.”