The token unlock schedule is clearly defined and strategically planned over a 65-month period, aligning well with the game's long-term economic goals and development milestones.
Transparency is high, with specific details provided about the allocation and unlock periods for different token categories (public sale, private sale, play-to-earn, staking rewards, ecosystem fund, etc.).
The supply management mechanisms, such as staking rewards and the ecosystem fund, are robust and designed to prevent market flooding and ensure economic stability.
Community governance is incorporated, allowing token holders to influence the distribution and use of tokens, enhancing adaptability and transparency.
The model is competitive within the Web3 gaming space, featuring innovative features like the 'Axie Score' system for weighted voting power based on contributions to the ecosystem.
The initial token distribution was fair, with public sale tokens instantly unlocked and private sale tokens distributed gradually over two years.
The game maintains a good balance between token scarcity and liquidity, with emissions decreasing over time to prevent oversupply.
Introduction
Token unlock schedules and supply management are critical components of a Web3 game's economic model, directly influencing its sustainability, player engagement, and long-term growth.
Axie Infinity, one of the most prominent Web3 games, has implemented a structured token unlock schedule and supply management strategy to ensure economic balance and incentivize long-term participation.
This report will cover:
The structured token unlock schedule and its alignment with the game's economic model.
[1a]
The mechanisms in place for supply management, including staking, emissions, and the ecosystem fund.
[2a]
The role of community governance in shaping the token supply and unlock mechanisms.
[3a]
Token Unlock Schedule
Axie Infinity's token unlock schedule is designed to gradually release tokens into circulation over a 65-month period, ensuring a controlled distribution that aligns with the game's long-term economic goals.
[1b]The initial circulating supply is set at 22.22% of the total supply, with tokens allocated to various categories such as play-to-earn, staking rewards, and the ecosystem fund.
[1c]
Public sale tokens were instantly unlocked, with 29,700,000 AXS (11% of total supply) distributed at launch.
[4a]
Private sale tokens are unlocked quarterly over two years, with 20% unlocked at the public sale and the rest distributed gradually.
[5a]
Play-to-earn tokens are gradually unlocked over 4.5 years, with monthly distributions to incentivize player participation.
[6a]
Staking rewards are distributed over 5.5 years, with monthly emissions decreasing over time.
[2b]
Ecosystem fund tokens are gradually unlocked over 4 years, with initial unlocks managed by Sky Mavis.
[7a]
Tokens allocated to Sky Mavis, advisors, and other stakeholders are unlocked gradually over 4 to 4.5 years.
[8a][9a]
Supply Management Mechanisms
Axie Infinity employs several mechanisms to manage token supply and ensure economic stability, including staking rewards, controlled emissions, and an ecosystem fund.
[2a][7b]
Staking rewards incentivize long-term holding, with emissions decreasing over time to prevent oversupply.
[2b]
The ecosystem fund is used to invest in community growth initiatives, with tokens unlocked gradually to avoid market flooding.
[7a]
Play-to-earn tokens are issued in alignment with game growth, ensuring that emissions scale with player activity.
[1d]
Alignment with Economic Model and Milestones
The token unlock schedule is designed to align with Axie Infinity's development milestones, ensuring that tokens are released in sync with the game's growth and player base.
[1d]
Play-to-earn tokens are distributed as the game reaches growth phases, ensuring that rewards are proportional to player activity.
[1d]
Staking rewards decrease over time, reflecting the game's transition from a growth-focused model to a sustainable, long-term economy.
[2b]
The ecosystem fund is managed to support community growth, with tokens unlocked as needed to fund initiatives that drive player engagement.
[7b]
Community Governance and Adaptability
Axie Infinity's tokenomics incorporate community governance, allowing stakeholders to influence the distribution and use of tokens through voting and proposals.
[10a]
Staking rewards will eventually be used to fund community-driven initiatives, with token holders directing the use of the Treasury.
[10b]
The ecosystem fund will be integrated into the DAO, allowing stakers to vote on funding allocations for community projects.
[7e]
The team is exploring innovative governance models, such as an 'Axie Score' system, which would weight voting power based on contributions to the ecosystem.
[3b]
Conclusion
Axie Infinity's token unlock schedule and supply management strategy demonstrate a well-planned, transparent, and adaptable approach that supports the game's economic model and long-term sustainability.
The gradual release of tokens aligns with development milestones, ensuring that supply is managed in sync with the game's growth and player base.
However, further clarity on governance mechanisms and the integration of community feedback could enhance the adaptability and transparency of the system.
The structured token unlock schedule ensures controlled distribution, preventing market flooding and supporting economic stability.
[1b]
Supply management mechanisms, such as staking rewards and the ecosystem fund, incentivize long-term participation and community growth.
[2a]
Community governance plays a central role in shaping the token supply and unlock mechanisms, though further integration of community feedback could enhance transparency.
[3a]
