Token's Price Drop Illustrates Challenge in Play-to-Earn Gaming

The long decline in the price of Axie Infinity's Smooth Love Potion (SLP) token illustrates the challenge of play-to-earn (P2E) gaming: players need more than a way to earn some random token, the token needs mechanics that enable it to hold value. From a report: P2E worked great, particularly with one game, Axie Infinity (whose treasury clocked $1.3 billion in revenue last year), until profits took a dive in early December that it has never recovered from, as Token Terminal shows. The "Smooth Love Potion" (SLP) token is the fuel that Axie Infinity runs on. 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.

Read more of this story at Slashdot.