Valuing DAOs: What is Axie Infinity Really Worth?

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 roughly 5% that the Axie protocol takes goes into the Community Treasury, which currently stands at 46k ETH or $95 million, and the Treasury is controlled by token holders, including but not limited to the developers, Sky Mavis, who hold about ~20% of the nation’s governance token, AXS.

A typical game would spend millions of dollars on marketing and keep the majority of profits to itself; Axie spends nothing on marketing, but lets players keep most of the value created. That should lead to a stickier game and more opportunities for expansion.

If DAOs really are the future, if they end up supplanting joint-stock corporations as the best and most common way to organize economic activity, then I believe key early experiments like NounsDAO have a good shot at retaining their value. It would be like owning a piece of art connected to the East India Company. But this is only possible if the N... See more