Axie Infinity White Paper Review Part 3

Back again (with the white vans) for the third part of the White Paper review! As I said last article there are so many things to unpack in this White Paper and each part of it makes me more excited and should make you more excited about the future of Axie Infinity. If you haven’t read the first two articles, you can check out Part 1 and Part 2

So let’s get back into it…

Community:

The first sentence that the team writes sets the tone for how they view the community:

“Axie Infinity is a new type of game — one where users and the core development team are both incentivized to work together to grow the network.”

The community is not just the users, it is everyone involved from scholarship players to the whales to the core devs and Psycheout and Jihoz. The community is the ecosystem surrounding Axie Infinity. Everyone benefits from a common goal: to grow the network. It isn’t just one party that benefits, it is the community as a whole. 

NFT top 5 wallets from Nonfungible.com. Axie at the top then, and now.

This is why the community growth is strong and engagement is high, which is clearly reflected in the data. There are now 20,000+ discord members and 27.2k Twitter followers (and counting). However, it easy to get caught up on the data and numbers. The data doesn’t make you emotionally feel anything. They are just numbers. If you go into the Axie Discord and chat, you will see how it is the most helpful community in blockchain gaming. And I do not say that lightly, I truly believe that. We (the community) realize it is not a zero sum game, it is a positive sum game. By helping bring others in and making their time in chat satisfying, the community can grow that much bigger and everyone can benefit. This was one of the first articles I wrote about and it still holds true today. If you don’t believe me or think I am blowing smoke, join the discord and find out for yourself.

Continuing, the belief in the team and the game itself has driven tons of community based content. From artwork to videos and podcasts, people go out of their way to support this game. This is seen further with the different third party development around the game. Many websites have been developed such as: Axie World, Axie Zone, Freak’s Tools, and Axie Edge. This may seem trivial, but these community sites have enhanced the gaming experience better. I will say, at the beginning of Axie Infinity (and still to this day), Freak’s extension was one of the main contributors to the success of Axie. The ability to see the outcome of your breed or to auto-queue all your teams at the same time made playing the game fun. 

Also, currently, if a new community member joins and wants to succeed in the arena, they can use Axie Zone to analyze the top teams and their team compositions. This allows for better learning and studying of the game.

The 3rd party development around Axie Infinity has enhanced the user experience.

Decentralized Organization:

The goal of the team has been from the beginning to evolve into a “community-owned Decentralized Organization”. This means that there will not be one central company that dictates how the game will be played or how the rewards will be distributed. These decisions will be delegated to the stakers and people will be able to vote on proposals. This allows for everyone to feel as though they are a part of the process.

I talked about the role of the team prior to full decentralization in Part 2. The team is set on ensuring that the direction of the game is mapped out before full decentralization can happen. They re-enforced this by saying: 

“The Sky Mavis team will be able to vote with the locked Play to Earn and Staking rewards allocations. This will prevent hostile actors from disrupting the ecosystem during the early and crucial phases of development. We estimate that Sky Mavis will no longer have the Majority vote by October 2023.”

The ability for the team to vote with the locked Play to Earn and Staking funds is a fail safe against potential hostile actors that seek to cause harm to the network. No one wants to see one bad actor ruin the game when it is vulnerable early on, to protect from this the team has these funds available for voting. But once the ship has set sail, the team will back away from command and let the community plot the course.

The road to becoming decentralized:

Version 0 October 2020: No voting possible with initial token release.

Version 1 First half 2021 / Staking dashboard released:

In this version, users will be able to stake their tokens and participate in governance votes proposed by the team. These votes will revolve around who will get funds from the Ecosystem fund and how the treasury should get distributed.

Version 2 Early 2022:

More on-chain voting. Along with potentially changing from 1 to 1 voting to quadratic voting. This is something we will analyze in another article.

Version 3 — September 2023 / Decentralized Organization:

In this version, stakers will be able to determine how the “governance framework should be used and how much should be voted on.” This is when the decisions become fully decentralized under the community’s control. The team listed things that can be voted on, they include:

  • Should Axie Infinity Limited continue to pay Sky Mavis to develop Axie Infinity?
  • Should Axie Infinity use the marketplace created by Sky Mavis?
  • How should the Community Treasury be used to reward AXS holders and the broader Axie community?
  • Should the Community Treasury funds be attached to any yield farming/staking services such as Yearn.finance or Rari.Capital?

These decisions are ones that determine the significant facets of the game, not to be understated.

Key Metrics:

Axie Stats

Growth is going parabolic. Hockey stick style.

This data is even out of date! The monthly users have breached the 10k mark and I expect it to continue to go up each month. Plus, Axie Infinity already has revenue as a blockchain startup. Pretty significant. 

Axie is global, there are no boundaries to growth. If you want to check out more data, check the dashboard here.

Past Revenue Streams:

Future Revenue Streams:

From the team:

“Axie Infinity will be run using a Game-as-a-Service model where new features will be introduced over time. Axie can potentially earn revenue from selling Axies, Land, cosmetics, and in-game consumables. Additionally, there will be fees when players want to level up their game characters, play in tournaments, and craft new assets.

The Community Treasury will begin to accumulate fees in early 2021 at the same time as the staking dashboard is enabled. All the fees and revenue generated by Axie Infinity will be placed in the Community Treasury which is governed by the AXS holders.”

This is exciting. There will be many different facets where Axie Infinity will be able to generate revenue through an entertaining game economy. I can imagine Axie’s wearing cosmetics, or adding a resource economy, and even special NFT drops. All these are just scratching the surface of what is possible…

And that brings us to the end of Part 3 of the Axie Infinity White Paper Review! In Part 4 I will finish up the last couple sections and give my final thoughts.

Don’t forget to follow and share, it is appreciated and makes me want to keep writing about Axie! If you have anything you want me to write about or talk about, my Twitter and discord handle are below:

on Twitter: https://twitter.com/the_YCB

Or in Axie Infinity’s Discord as YCB: https://discord.gg/axie

Thank you!

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