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Axie Infinity: An In-Game Currency in the Metaverse Index

What are Axie Infinity Shards (AXS)?

As the governance token of the Axie Infinity Universe, AXS is used in key governance votes and decision making on how the funds in the Axie Infinity treasury can be spent.

AXS also serves as the in-game currency of the Axie Infinity Universe. The NFT-based game pits creatures called Axies against each other in a Pokémon-style battle, players can either buy Axies with AXS or breed their own Axies using the AXS token. In this guide we take a closer look at Axie to answer common questions including

Who created Axie Infinity Shards (AXS)?

AXS was created in 2018 by a Vietnamese developer company, Sky Mavis.  The company was founded in 2017 by Andy Ho, Aleksander Leonard Larsen, Trung Nguyen and Jeffrey Zirlin.

Why are Axie Infinity Shards (AXS) included in the Metaverse Index (MVI)?

The AXS token leads the way as the top NFT Coin, with a market capitalization of $7,321,873,786, at the time of writing.  In July of 2021, Axie Infinity made over $100 million in revenue in 30 days. In November of 2021, Axie infinity launched a decentralized exchange called Katana on the Ronin blockchain (An Ethereum sidechain), this DEX enables Axie Infinity players to easily swap between the various assets available within the Axie Infinity ecosystem.

The protocol has also conducted an independent security audit by Quantstamp.

The utility of Axie Infinity Shards (AXS)

Beyond the in game utility of the AXS token, there are a number of use cases available to holders of the token.

  • Governance: AXS has the primary utility of governance. Unlike normal games where all the decisions are made by the the company and developers, in the Axie Infinity Universe, token holders govern the platform. Players have the opportunity to stake AXS on the Axie Infinity protocol and reap rewards and participate in the governance voting process.
  • Payment induced liquidity: AXS enables users to facilitate payments for in-game purchases. With two million daily users, at the time of writing, the frequent token purchases to facilitate gaming gives the token a competitive edge in the Metaverse.

AXS Tokenomics

Axie Infinity takes pride in supporting a 100% player owned platform. Instead of charging players for items and copies, they only take small fees from the trades between players.

The Axie Infinity Universe is able to evolve and multiply users thanks to in-game resources, such as AXS tokens.

The AXS Token has a circulating supply of 70 Million AXS tokens and a total supply of 270 million tokens, at the time of writing. According to a chart from the AXS white paper, the issuance and supply of AXS will span over a 65 month period, and the issuance and total supply of AXS will never exceed 270 Million. The supply roadmap indicates the protocol plans distribute tokens through hosting a private and public sale, staking rewards, gaming issuance, funding ecosystem fund and the compensation of Sky Mavis and the Axie Infinity Protocol Advisors.

Beyond the 65 month schedule, it is unlikely more AXS will be released. This supply cap will aid in creating scarcity for the token as its utility becomes apparent over the months.

Axie Infinity Community

A protocol is only as strong as its community. Axie Infinity possesses a vibrant community of gamers and stakeholders who actively contribute to its operations. In the Axie Infinity Universe the players are the contributors. The Axie Infinity protocol currently has over 2 million monthly active players at the time of writing.  That’s a huge leap from the 10,500 monthly active players the game had when it launched in January of 2020.

The Axie community is also extremely vibrant on Discord. One of the co-founder’s, Jeff  “The Jiho” Zirlin, celebrated the growth of their Discord server on Twitter. The server recently reached 800,000 members. The vibrant Axie Infinity community holds substantial promise for the utility of the protocol’s currency which is the AXS token.

How can I buy AXS?

You can gain exposure to AXS and other leading entertainment, gaming, virtual economy and NFT projects by buying MVI which includes AXS. You can buy MVI directly from the Index Coop by connecting your wallet to the Index Coop app.  

If you’re looking to exchange a fiat currency, like the U.S. dollar, directly for MVI, then you’ll want an Ethereum wallet like Argent, Metamask, or Rainbow. With each of these wallets, you can connect to your bank account or debit card, which allows you to exchange fiat currencies directly for Index Coop products like MVI.

Infographic showing the token included in the metaverse index (MVI)

What is MVI?

The Metaverse Index (MVI) is a digital asset that currently tracks the performance of non-fungible tokens, entertainment, virtual reality, augmented reality and music assets across Ethereum. It combines the features of an ERC-20 token and a traditional structured product to capture the trend of entertainment, social activity and business moving to take place in virtual economies, powered by NFTs and blockchain technology. MVI uses a combination of root market cap and liquidity weighting based on the value of each token’s circulating supply and aims to track projects that have significant usage and show a commitment to ongoing maintenance and development.

About Index Coop

Index Coop is a decentralized autonomous organization (DAO) that powers structured decentralized finance (DeFi) products and strategy tokens using smart contracts on the blockchain. We offer a suite of sector structured products, leverage and inverse products, and yield-generating products. We aim to create products that are simple to use, accessible to everyone and secure. Our products are built on Set Protocol, a twice-audited, self-custodial DeFi tool that allows for the creation and management of Ethereum-based (or ERC-20) tokens. Among users, partner protocols, and our composable products, Index Coop maintains one of the largest partnership networks in the DeFi ecosystem.

How to buy Index Coop products with fiat currencies:

  • First, you’ll need to create an Ethereum wallet like Argent, Metamask, Gemini, or Rainbow.
  • Next, you’ll set up your new wallet and connect your bank account.

You can also earn or buy MVI tokens directly via your favorite decentralized exchange.

Disclaimer: This content is for informational purposes only and is not legal, tax, investment, financial, or other advice. You should not take, or refrain from taking, any action based on any information contained herein, or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, discord content, news feeds, tutorials, tweets, and videos. Before you make any financial, legal, technical, or other decisions, you should seek independent professional advice from a licensed and qualified individual in the area for which such advice would be appropriate. This information is not intended to be comprehensive or address all aspects of Index or its products. There is additional documentation on Index’s website about the functioning of Index Coop, and its ecosystem and community.

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