Axie Infinity is a blockchain game in which players own their creatures (Axies), land and items as NFTs, and its economy runs on two tokens: AXS, the governance token, and SLP, earned in play and used for breeding. It is developed by Sky Mavis, a studio founded in early 2018 and headquartered in Ho Chi Minh City at the time of its 2021 whitepaper. The game makes money from fees, not ticket sales: the whitepaper lists a 4.25% marketplace fee on sales of Axies, land and land items and a breeding fee paid in AXS, and says all such fees and revenue go to a Community Treasury governed by AXS holders.
The whitepaper (last updated November 2021) lists a 4.25% fee on successful sales of Axie NFT assets: Axies, land and land items.
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Breeding fee
Breeding two Axies costs AXS plus SLP, and the SLP cost rises with each breed up to seven times per Axie. Axie Infinity says it does not sell SLP to players directly.
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The Community Treasury
The whitepaper says all fees and revenue generated by Axie Infinity go to the Community Treasury, governed by AXS holders, which in 2021 held over $1 billion in value. Its listed possible uses include supplementing staking rewards and burning AXS.
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Sky Mavis and Ronin
Sky Mavis builds the game and Ronin, the blockchain Axie runs on, which Sky Mavis describes as an EVM chain for games with player-owned economies. Sky Mavis does not publish its own revenue.
What changed in 2025-26
A second token, bAXS
In February 2026 Axie launched Bonded AXS (bAXS), worth 1 AXS but spendable only inside Axie: no trading or transfers. It pays breeding, evolution and other fees, and is meant to keep economic activity inside the game.
Staking rewards cut back
In November 2025 Axie said AXS staking rewards would fall by 5% every 9 days, after about 95% of total staking rewards had been distributed, and that it would test rewards tied to players’ Axie Score.
Treasury earns from the chain
From 12 May 2026 Ronin began rewarding builders by their onchain activity. Axie said 100% of its RON rewards would go to the Axie Treasury and estimated they could reach 200,000 RON a month.
Games built with AI
In September 2026 Axie ran a Vibeathon inviting fans to build playable Axie games with AI coding tools; Round 1 produced 91 playable games, mostly from beginners. Its next title, Atia’s Legacy, was in public playtests in 2026.
How value flows in Axie Infinity
AXS
What it doesGovernance and staking token; pays breeding and other fees
Who earnsHolders who stake; the Treasury from fees
bAXS
What it doesSpend-only version of AXS (1 bAXS = 1 AXS), launched February 2026
Who earnsPlayers earn it as rewards
SLP
What it doesEarned by playing; consumed by breeding
Who earnsPlayers
Marketplace
What it doesTrading of Axies, land and items; 4.25% fee in the whitepaper
Who earnsCommunity Treasury
Ronin rewards
What it doesRON paid to builders for onchain activity from May 2026
Who earnsAxie Treasury
What it means for you
For game builders: decide early who collects fees (the studio, the treasury or players) and write it down; Axie's whitepaper made that explicit.
Design sinks as carefully as rewards; Axie keeps adding ways to spend tokens, such as bAXS, because rewards alone inflate supply.
Treat earnings in a token economy as variable; reward rates can be changed, as the 2025 staking change shows.
Check any business-model claim against the official whitepaper and blog; many third-party write-ups mix up the studio, the treasury and community guilds.
Watch AI-built content: if fans can build games with AI tools, a game's IP can grow faster than its own team.
The Business Engineer lens
Axie showed that a game can be run as an economy, and also that token rewards without enough spending drain value. The Business Engineer view is that its newer moves, spend-only tokens, chain-level rewards and AI-built fan games, are attempts to make the economy pay for itself rather than depend on new buyers.
Through fees: the whitepaper lists a 4.25% marketplace fee on sales of Axies, land and items and an AXS breeding fee, and says these go to the Community Treasury governed by AXS holders.
Who makes Axie Infinity?
Sky Mavis, a game studio founded in early 2018, which also builds the Ronin blockchain that Axie runs on.
What is bAXS?
Bonded AXS, launched in February 2026: worth 1 AXS but usable only inside Axie, for breeding, evolutions, staking and other fees; it cannot be traded or transferred.
Can you still earn from playing Axie?
Players can earn tokens as rewards, but reward rates change; in November 2025 Axie cut AXS staking rewards by 5% every 9 days.
The complete explainer, cleaned up and reformatted for mobile.
Axie Infinity is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio founded by Trung Nguyen in 2018. Nguyen combined his interest in blockchain accountability and the CryptoKitties craze to launch the game in August 2018. The game’s main fee is 4.25% on marketplace sales of Axies, land and land items, plus a breeding fee paid in AXS; the official whitepaper says these fees go to the Community Treasury governed by AXS holders. In 2021, Axie Infinity required new players to own three monsters to get started.
Value Proposition
AnalysisAxie Infinity’s value proposition includes: – Play-to-Earn: Allowing players to earn cryptocurrency (AXS and SLP tokens) by playing the game. – Ownership of NFTs: Enabling players to own, trade, and sell NFT-based Axies. – Blockchain-based: Ensuring transparency and security of in-game assets. – Community and Governance: Allowing players to participate in the game’s development and governance. Axie Infinity appeals to players seeking opportunities to earn, trade, and participate in a blockchain-based gaming community.
ImplicationsAttracts gamers interested in earning cryptocurrency while playing. Offers ownership and trading of NFT assets, providing a unique gaming experience. Builds trust through blockchain technology for asset ownership and transparency. Engages the community in the game’s development and governance, fostering loyalty.
Examples– Earning cryptocurrency (AXS and SLP) while playing the game. – Ownership and trading of NFT-based Axies. – Utilizing blockchain for asset security and transparency. – Involving the community in game development and governance.
Customer Segments
AnalysisAxie Infinity serves the following customer segments: 1. Players: Gamers interested in playing and earning cryptocurrency through Axie Infinity. 2. Collectors and Traders: Individuals who buy, collect, trade, and sell Axie NFTs. 3. Blockchain Enthusiasts: People interested in blockchain technology and decentralized gaming. 4. Developers and Contributors: Participants in the game’s development and governance. Axie Infinity caters to a diverse set of users with different motivations.
ImplicationsAppeals to gamers seeking play-to-earn opportunities and a unique gaming experience. Attracts collectors and traders looking to invest in and trade NFT-based assets. Engages blockchain enthusiasts interested in blockchain gaming. Involves developers and contributors in shaping the game’s future. Addresses the needs of various customer segments.
Examples– Gamers interested in play-to-earn opportunities. – Collectors and traders of Axie NFTs. – Blockchain enthusiasts looking for blockchain-based gaming. – Developers and contributors participating in game development and governance.
Distribution Strategy
AnalysisAxie Infinity’s distributionstrategy includes: – Blockchain Technology: Leveraging blockchain for asset ownership and security. – NFT Marketplaces: Listing Axie NFTs on NFT marketplaces for trading. – Gaming Community: Building and engaging a strong gaming community. – Social Media and Influencers: Utilizing social media and influencers to reach a wider audience. Axie Infinity ensures asset security through blockchain, leverages NFT marketplaces for trading, fosters community engagement, and uses social media to reach potential players.
ImplicationsProvides users with secure asset ownership through blockchain technology. Enables trading of Axie NFTs on popular NFT marketplaces. Cultivates a strong and engaged gaming community. Expands its reach through social media and influencer partnerships. Implements a multi-pronged distribution approach.
Examples– Leveraging blockchain for secure asset ownership. – Listing Axie NFTs on NFT marketplaces for trading. – Building and engaging a strong gaming community. – Using social media and influencers for wider outreach.
Revenue Streams
AnalysisAxie Infinity generates revenue through several streams: 1. Marketplace Fees: Charging fees for NFT transactions on the marketplace. 2. Axie Breeding: Earning fees from breeding Axies to create new ones. 3. Game Asset Sales: Selling in-game assets and cosmetics. 4. Governance Token: Holding a governance token (AXS) with potential value appreciation. 5. Play-to-Earn Model: Generating income from user activities, including battles and quests. Axie Infinity diversifies its income sources through marketplace fees, breeding, in-game asset sales, governance tokens, and the play-to-earn model.
ImplicationsEarns revenue from transaction fees on NFT marketplaces. Benefits from breeding fees when players create new Axies. Generates income from in-game asset sales and cosmetics. Holds a governance token (AXS) that may appreciate in value. Capitalizes on the play-to-earn model for income generation. Diversifies revenue streams for financial sustainability.
Examples– Charging fees for NFT transactions on the marketplace. – Earning fees from breeding Axies. – Selling in-game assets and cosmetics. – Holding a governance token (AXS) with potential value appreciation. – Generating income from user activities, including battles and quests.
Marketing Strategy
AnalysisAxie Infinity’s marketingstrategy involves: – Social Media Promotion: Leveraging platforms like Twitter and Discord to engage with the community. – Influencer Partnerships: Collaborating with influencers to reach a wider audience. – Play-to-Earn Narrative: Emphasizing the play-to-earn aspect of the game in marketing. – User Engagement: Fostering community engagement through competitions and events. Axie Infinity focuses on community engagement, influencer partnerships, and the play-to-earn narrative to attract and retain players.
ImplicationsEngages with the community through active social media presence. Reaches a wider audience through influencer collaborations. Highlights the play-to-earn feature in marketing materials. Encourages user participation through competitions and events. Implements a community-centric marketing approach.
Examples– Leveraging social media for community engagement. – Collaborating with influencers to expand the user base. – Emphasizing the play-to-earn aspect in marketing. – Fostering user engagement through competitions and events.
Organization Structure
AnalysisAxie Infinity’s organizational structure includes: – Development Team: Responsible for game development and updates. – Marketplace Team: Manages the NFT marketplace and transactions. – Community Managers: Engage with and support the gaming community. – Governance Team: Oversees the governance aspect of the platform. – Marketing and Growth: Focuses on user acquisition and engagement. – Finance and Operations: Manages financial aspects and platform operations. Axie Infinity maintains a structure that supports game development, marketplace management, community engagement, governance, marketing, and financial operations.
ImplicationsLed by a team responsible for game development and updates. Manages the NFT marketplace and transactions. Engages with and supports the gaming community. Oversees the governance aspect of the platform. Focuses on user acquisition and engagement through marketing. Manages financial aspects and ensures smooth platform operations. Maintains a structure aligned with core functions and business goals.
Examples– Led by a team responsible for game development and updates. – Manages the NFT marketplace and transactions. – Engages with and supports the gaming community. – Oversees the governance aspect of the platform. – Focuses on user acquisition and engagement through marketing. – Manages financial aspects and ensures smooth platform operations. – Aligns with core functions and business goals.
Competitive Advantage
AnalysisAxie Infinity’s competitive advantage stems from: – Play-to-Earn Innovation: Pioneering the play-to-earn model in blockchain gaming. – Asset Ownership: Offering true ownership of NFT-based in-game assets. – NFT Ecosystem: Creating a vibrant NFT ecosystem with Axies and land. – Community Engagement: Fostering an engaged and loyal gaming community. – Governance Participation: Allowing players to participate in platform governance. Axie Infinity’s strengths in play-to-earn innovation, asset ownership, NFT ecosystem, community engagement, and governance participation position it as a leader in blockchain gaming.
ImplicationsDistinguishes itself as a pioneer in the play-to-earn blockchain gaming model. Offers genuine ownership of NFT-based in-game assets. Creates a vibrant NFT ecosystem, enhancing player engagement. Fosters a strong and loyal gaming community. Involves players in platform governance, increasing loyalty and participation. Enjoys a competitive edge in the blockchain gaming industry.
Examples– Pioneering the play-to-earn blockchain gaming model. – Offering true ownership of NFT-based in-game assets. – Creating a vibrant NFT ecosystem with Axies and land. – Fostering an engaged and loyal gaming community. – Allowing players to participate in platform governance. – Maintaining a competitive edge in the blockchain gaming industry.
Axie Infinity origin story
Axie Infinity is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio founded by Trung Nguyen in 2018.
Before founding Sky Mavis, Nguyen had worked for the Silicon Valley-based Anduin Transactions, a platform that made investment deals faster, more efficient, and more transparent.
Nguyen had a particular interest in the accountability facilitated by the Anduin platform, which he linked with the burgeoning interest in blockchain in Vietnam.
While others focused on Bitcoin and other cryptocurrencies, Nguyen recognized that blockchain technology could be used to build video games. He was particularly in the game CryptoKitties, where users could buy, sell, and breed unique virtual cats validated by the Ethereum blockchain.
Over the next few months, Nguyen developed his own blockchain-based game, combining the true ownership element of CryptoKitties with the competitive gameplay of the Pokémon series.
The game, which he called Axie Infinity, featured fantasy creatures based on the axolotl, a Mexican salamander with the ability to regenerate limbs, gills, and parts of the eyes and brains. It was released in August 2018 and was an instant success.
In Axie Infinity, every monster is a non-fungible token (NFT).
Players earn tokens by engaging in turn-based battles with other players or computer-controlled teams. These tokens are then used to “breed” new monsters by creating more NFTs.
The company also earns money from breeding fees, which are collected when a player decides to create a new monster. Fees are payable in either SLP (Smooth Love Potion) or the game governance token AXS.
Note that Sky Mavis must share the breeding fee with the developers and owners of AXS.
User earnings
In 2021, new players had to own three monsters to start playing.
Key Highlights
Sky Mavis and Axie Infinity: Axie Infinity is an NFT-based online video game developed by Sky Mavis, a Vietnamese game studio established by Trung Nguyen in 2018. The game leverages blockchain technology and NFTs to create a unique gaming experience.
Founder’s Background and Vision: Trung Nguyen’s background included working at Anduin Transactions, a Silicon Valley platform that enhanced investment deal efficiency through transparency. Drawing from this, Nguyen identified the potential of blockchain technology beyond cryptocurrencies, leading to his interest in developing blockchain-based video games like Axie Infinity.
Inspiration from CryptoKitties: The popularity of blockchain-based games, particularly CryptoKitties, which enabled users to trade and breed virtual cats validated by Ethereum blockchain, fueled Nguyen’s vision. He aimed to blend blockchain’s ownership aspect with engaging gameplay, culminating in Axie Infinity.
Axie Infinity’s Launch and Success: Axie Infinity, released in August 2018, introduced fantasy creatures inspired by the axolotl. This Mexican salamander’s regenerative abilities influenced the game’s mechanics. Axie Infinity rapidly gained popularity, with total sales reaching $2.3 billion by October 2021.
Series B Funding and Development Platform: Sky Mavis secured a substantial $152 million in Series B funding. This capital infusion is aimed at developing a distributionplatform to assist game developers in creating blockchain-based games, reflecting the company’s commitment to advancing the blockchain gaming ecosystem.
Game Mechanics and NFT Integration: In Axie Infinity, each monster is represented as an NFT on the Ethereum blockchain. Players engage in turn-based battles and earn tokens, which can be used for “breeding” new monsters. The blockchain ensures unique, verifiable creatures, thus enhancing their value.
Revenue Streams: Sky Mavis generates revenue through two primary channels:
Marketplace fee: A 4.25% fee on marketplace sales of Axies, land and land items, which the whitepaper says goes to the Community Treasury.
User Earnings: New players must invest in three monsters to start.
In-Game Purchases and Breeding:
Land and NFTs: Sky Mavis gains revenue from sales of in-game items like land and NFT monsters, charging a 4.25% fee. Notably, a set of nine land plots sold for around $1.5 million in February 2021.
Breeding Fees: When players breed new monsters, they pay fees in either SLP (Smooth Love Potion) or the game’s governance token AXS. Sky Mavis shares these fees with the developers and AXS owners.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
