Axie Infinity: Infinite Opportunity or Infinite Peril? — Naavik

Games where earning is at the core are also inheriting a difficult sustainability problem. It’s impossible to create an economy that constantly grows. Axie earnings have already started to decline, which will soon make the game undesirable for their current player base who are primarily playing to earn. If new entrants cannot win and turn a profit,... See more

The interesting thing about Axie Infinity is that, just like Ponzi and Madoff, it has a fundamentally unsustainable economic model that depends on inflows from new players to fund payouts to existing players. But here’s the weird, mind-bending part of it: everybody knows! The team knows, their investors know, ordinary players know—and they talk abo... See more

However, an increasing number of crypto assets are fundamental, not speculative, in nature. Blockchain technology is being used to build real businesses - businesses that generate cash flow and can be valued on the basis of future cash flow. The rest of this post is dedicated to doing just that: valuing the Axie Infinity Universe, a blockchain-base... See more

This week, I want to dive deeper into the economics of Axie. This is important because 1) Axie is probably the most important on-ramp to crypto in the world right now, and 2) because as more workers find work in the metaverse, we often overlook how complex these economies are. Digital economies may be disguised within games—in Axie’s case, within a... See more