Axie Infinity is a blockchain-based game that has gained widespread popularity in the cryptocurrency and gaming ecosystems. Developed by Sky Mavis, Axie Infinity blends elements of traditional video games, collectible card games, and digital pet universes into a cohesive gaming experience. This report aims to delve into various facets of Axie Infinity including its network protocol, use-cases, and the utility of its tokens.
Axie Infinity is a turn-based card game built on the Ethereum network that allows players to breed, raise, battle and trade Axie creatures.
“Axie Infinity describes itself as a Pokemon and Tamagotchi inspired game that utilises Non-Fungible Tokens (NFTs) to represent unique creatures, abilities, land plots and other in-game assets.
Players are able to earn two tokens, Axie Infinity Shards (AXS) and Small Love Potions (SLP), by playing Axie Infinity in either Adventure or Arena modes. AXS serves as a governance token, allowing token holders to vote on the future development of the gaming experience. SLP is the in-game token used to breed Axies.
Axie Infinity operates on the Ethereum blockchain for its core features like Axie ownership and the marketplace. However, due to scalability issues and high transaction fees on Ethereum, the platform has its sidechain known as Ronin to handle in-game transactions. Ronin is an Ethereum-compatible chain, specifically tailored to meet the needs of Axie Infinity and potentially other future games.
a. Gaming and Collectibles
Axies are fantasy creatures that players can collect, breed, and battle. Each Axie is a non-fungible token (NFT), giving it unique attributes and ownership rights. Players can form teams of Axies to participate in battles, earn rewards, and climb leaderboards.
b. Play-to-Earn Model
Axie Infinity has popularized the ‘Play-to-Earn’ model, where players can earn various tokens through skilled gameplay and contributions to the ecosystem. This has created economic opportunities for players around the world.
c. Virtual Land and Governance
The platform also includes a feature called ‘Lunacia,’ a virtual land gameplay system where players can purchase, develop, and own parts of a digital landscape.
Axie Infinity features a decentralized marketplace where Axies, land, and items can be securely and transparently bought, sold, and traded.
AXS (Axie Infinity Shards)
- Governance: AXS token holders can vote on various proposals related to the game’s future.
- Staking: Users can stake AXS to earn additional AXS.
- Utility: The token can be used to participate in special activities within the Axie Infinity ecosystem.
SLP (Small Love Potion)
- Utility in Breeding: SLP is used in the breeding process of Axies.
- Tradable: SLP can be bought or sold in the marketplace and can be exchanged for other cryptocurrencies.
Based on and subject to the foregoing information, and for the purposes of this conclusion, we realise that the use cases and focus of Axie Infinity do not add any real world value, and promote a gaming culture which arguably has very little benefit. Shariah principles encourage using, investing and spending time in activities that are beneficial and value adding. Therefore, we cannot express AXS to be in congruence with the Shariah principles and rulings.
*Attention is drawn to the term ‘Sharia’ and ‘Sharia compliant’ and its interpretation thereof as expressed in the following link https://shariyah.net/glossary/