"Why is SLP Pumping?" The FundamentalsWhy is SLP pumping?
Roughly 40% of SLP is created from adventure mode, roughly ~44% of SLP is created from PVP, and the remainder (~14%) is minted from players claiming the daily quest.
Adventure and daily quest rewards have been completely REMOVED in season 20. 54% of SLP minting has just been TURNED OFF (well, before calculating new mints with updated PvP distro, that will take time though).
More slots added to PvP bracket, which means more teams will be breeding to hone Axies. SLP demand theoretically increases. Further incentives with a PvP total reward pool of roughly worth 6 million USD.
Other use functions for SLP teased with cosmetics and part upgrades. Users MIGHT horde SLP in anticipation. The dev team calls this "Vertical Progression", think skill trees in traditional video games, or other areas you sink EXP into.
Axie Land gameplay also looms on the horizon.
MY CONCERNS: New SLP distro will be quite top heavy in PvP ranking. This can create a self reinforcing feedback loop, where top teams remain top teams simply because they have more in game capital to continue improving. There's a possibility this can alienate new players and create a centralization of power. The question would be then, do the fat cats dump their SLP on the market to capitalize play to earn, or do they keep demand going and reinvest into their teams to hoover up more of the 6 mil reward pot (in AXS).
TL:DR SLP mint more than halved, demand and use case (or burn functions) increased.
Once again, the Axie Team is HIGHLY AWARE of their fragile ecosystem. Looking through their updates and white papers, the moves they've made so far are actually highly strategic. Now that they have the user base, they plan ok focusing more on the gameplay aspect, which means MORE USE CASES FOR SLP.
I don't have tons of capital, but I personally will be tossing a couple hundred into SLP every paycheck. I'll be looking to exit roughly around the time BTC has a blow off top. I am highly curious though how the economics of this coin will play out, seeing how the dev team can easily manipulate economic factors surrounding SLP. Maybe this means we see SLP and AXS break correlation from BTC's gravity. It's something I'll be keeping a close eye on.
