What is Smooth Love Potion (SLP)?

Deep Dive

1. Purpose & Value Proposition

SLP is the lifeblood of Axie Infinity’s economy. Players earn SLP by winning battles or completing daily quests, then spend it to breed new Axies—digital pets used in gameplay. Each breeding cycle consumes SLP, which increases exponentially (100 SLP for the first breed, up to 2,100 SLP for the seventh). This burn mechanism aims to balance supply but historically struggled with hyperinflation during periods of high player growth.

2. Tokenomics & Governance

SLP has no maximum supply, making its value highly sensitive to player demand. New tokens enter circulation as players earn rewards, while burns occur during breeding. For example, breeding an Axie seven times consumes 4,300 SLP in total. However, the lack of a hard cap led to a 98% price crash in 2022 when player growth stalled. Recent updates (as of 2025) introduced deflationary measures like a capped supply and reduced issuance rates to stabilize the ecosystem.

3. Ecosystem Role

Beyond breeding, SLP’s utility expanded with Axie Infinity’s evolution. It now fuels in-game upgrades, NFT crafting, and staking pools. The token’s ERC-20 design allows integration with platforms like Uniswap and Binance, where it’s traded against ETH, USDT, and fiat pairs like PHP—critical for players in the Philippines, a key user base.

Conclusion

SLP is a play-to-earn pioneer, blending gaming incentives with decentralized token mechanics. While its supply dynamics have posed challenges, ongoing adjustments aim to align issuance with sustainable demand. Can Axie Infinity’s evolving tokenomics finally reconcile player rewards with long-term token stability?