NFT game is attracting attention as a soaring word in 2021. This online game, linked to the blockchain (distributed ledger), is pioneering a new paradigm of not only playing and enjoying, but also earning while playing as an investment target.
While cryptocurrencies related to NFT games are showing an extraordinary surge, various questions are asked, "Is this popularity real?" "Is it really profitable?" "Is it just a temporary bubble trend?" It is also true that they are being thrown.
NFT tends to be preceded by some sensational topics, such as digital art being sold for about 7.9 billion yen, but what is the actual situation? This time, we will focus on the "NFT game" and unravel it.
<div class="mce-toc">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga2s85aqfl">Why NFT Game is that hot?</a>
<ul>
<li><a href="#mcetoc_1ga2s85aqfm">1. Create your own character</a></li>
<li><a href="#mcetoc_1ga2s85aqfn">2. The more popular it becomes, the more money you have</a></li>
<li><a href="#mcetoc_1ga2s85aqfo">3. Enjoy character exchange</a></li>
<li><a href="#mcetoc_1ga2s85aqfp">4. Hacking? No problem</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2s85aqfq">Can you really make money from games?</a></li>
<li><a href="#mcetoc_1ga2s85aqfr">Axie Infinity</a></li>
<li><a href="#mcetoc_1ga2s85aqfs">NFT game - Trends and future</a></li>
<li><a href="#mcetoc_1ga2s85aqft">Summary</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga2s85aqfl" style="text-align: justify;">Why NFT Game is that hot?</h2>
What exactly is an NFT game? It looks like a normal online game on the screen, but the process and rules for playing it are completely different. Of course, the main body is NFT.
Various contents such as digital art and videos are traded in NFT, but recently, the target is also extended to games. And we cannot overlook the fact that we are building a new game market as a decentralized application called Dapp. So first, let's take a look at the appeal and notable points of this NFT game.
<h3 id="mcetoc_1ga2s85aqfm" style="text-align: justify;">1. Create your own character</h3>
Since NFT is a non-fungible token, the characters of the game traded here will be unique. If you follow the rules in the game and use all the tools and items to grow your own unique character, you can trade this as an NFT. The world view of the character varies depending on the game. Moreover, its value is clearly evaluated numerically like a stock price, so the grower is not complacent. How to raise a star character loved by the market is a showcase of your skill, and it will be a big exciting point.
<h3 id="mcetoc_1ga2s85aqfn" style="text-align: justify;">2. The more popular it becomes, the more money you have</h3>
(High popularity, high price)
In NFT games, if the character you raise becomes popular, it will be a good investment target. In traditional games, characters are the only target you can control in the game, and they are just a way to earn points and defeat enemies. And if you are a player of that game, many people around the world can operate the same character, and even if it becomes popular, related goods will sell.
However, in NFT games, the character itself is an investment target, and if you sell it, even one will be worth tens of thousands of yen or more, and ownership will be proved. In addition, the price of virtual currency, which is a token used for payment, will fluctuate while being affected by the excitement of the game. Therefore, you can expect the asset value of the tokens you get by selling the popular characters.
<h3 id="mcetoc_1ga2s85aqfo" style="text-align: justify;">3. Enjoy character exchange</h3>
A notable feature of NFT games is the system that allows you to exchange characters between completely different games. Not all NFT games, and the number is still small, but compatibility is novel. In the real world of art, it may be like bartering. Invite characters raised in a completely different game into the game you play, customize and sell them. Motivation to enjoy the game and motivation to earn high praise in the market. The fusion of two incentives not found in conventional games will be a new attraction unique to NFT games.
<h3 id="mcetoc_1ga2s85aqfp" style="text-align: justify;">4. Hacking? No problem</h3>
A major problem in today's online and social games is the existence of cheats that make characters unusually strong by fraud. The act of a heartless user ruining the game market would be terrible for those who genuinely want to enjoy the game. However, in that respect, NFT games systematized by blockchain cannot easily tamper with data, so even if cheating is performed, it can be immediately discovered and quickly eliminated, so it is safe.
<h2 id="mcetoc_1ga2s85aqfq" style="text-align: justify;">Can you really make money from games?</h2>
Since NFT games are a business model that has never been seen before, many people may be wondering if they can really make money. The first NFT game is a game that breeds and raises cats called "CryptoKitties" that appeared in 2017. And since it wasn't until 2021 that NFT games began to boil in earnest, I can't help but wonder, "Is it really okay?" However, there are people who actually make money from NFT games, and it is a fact that a very meaningful business model is being built. One of them is the "scholarship system".
NFT games are attracting attention for their novel profit style of earning while playing, which is called "Play to Earn". Many young people, especially in Southeast Asia and Latin America, who have lost their income sources due to the corona disaster, are all seriously trying to make a living by "Play to Earn". However, due to the high price of NFTs, it is very difficult for these young people to buy their own characters and participate in the game.
If wealthy people, investors, and even the decentralized autonomous organization "Yield Guild Games (YGG)" for investing in NFTs rent out the purchased characters and young people play and earn money using them, that is the case. A scholarship system is underway to share the amount (tokens) at a fixed rate. As a result, for example, Filipino users earn an average of $ 50 a day in Vietnam's first NFT game "Axie Infinity," which will be described later, far exceeding the average wage of $30 is marked.
In addition, game players can earn more assets by earning tokens and not immediately monetizing them, but by holding them and waiting for the tokens to rise in market price. In fact, the price of Axie infinity Axs tokens has increased 20 times in about 3 months. By the way, some Chinese investors who have paid attention to the asset value of NFT games have already owned more than 100 million JPY in games alone. Recently, transactions related to NFT games have become active, and the transaction volume of NFT in August 2021 of major exchanges marked about 120 billion yen, which is three times that of July in just over two weeks. Therefore, if you trade characters in NFT games and invest in virtual currencies that accompany them, you can expect to make a considerable amount of money.
<h2 id="mcetoc_1ga2s85aqfr" style="text-align: justify;">Axie Infinity</h2>
<img class="responsiveImage" src="http://api.relipa.global/storage/478/5428917.jpg" alt="NFT game" />
The NFT game "Dapp" is appearing one after another, but the one that is by far the most noticeable is "Axie Infinity" released by a Vietnamese startup in 2018. Axie Infinity is an NFT game where you can grow, breed and battle monsters on the blockchain Ethereum. The protagonists are six types of monsters called "Axie", each with a different personality. Insect-type, plant-type, bird-type, etc. have various appearances, strengths, and durability, and have their own strengths and weaknesses.
In addition, each Axie has four levels of rarity (rare value), and the rarity value increases in the order of common &rarr; rare &rarr; ultra rare &rarr; legend. Breeding with two monsters will create new monsters that have never existed in the past, and the possibilities are endless. Players buy the virtual currency Ethereum, set up a wallet on the web, deposit Ethereum there, and buy monsters. The condition is to purchase three monsters first, and one is cheap and costs around 20,000 yen, and if it is expensive, it costs 50,000 to 60,000 yen or more, so an initial investment of at least 100,000 to 150,000 yen is required. is.
There are two play styles, "Adventure" like sugoroku and "Arena" where players can enjoy battles with each other, and each player gets a virtual currency SLP token every time they win. If you sell a monster, you can get a virtual currency AXS token, but one unit is about 70 dollars (as of August 2021), it has risen about 15 times in about 2 months, and the market capitalization is 4 billion dollars. Axie Infinity has about 500,000 active users, 60% of whom are Filipinos. Axie Infinity is the first scholarship system I explained earlier, and if it continues to operate smoothly, it is thought that the second and third Axie Infinity will appear.
Also see:&nbsp;<a title="Axie Infinity and Ponzi Scheme - Play more, earn more?" href="../../blogs/axie-infinity-ponzi-scheme" target="_blank" rel="noopener">Axie Infinity and Ponzi Scheme - Play more, earn more?</a>
<h2 id="mcetoc_1ga2s85aqfs" style="text-align: justify;">NFT game - Trends and future</h2>
Axie Infinity has increased its profits by about 170 times in just four months from April 2021. This is an astronomical number from a real economic perspective, and it can be said that it is nothing more than a bubble. However, on the other hand, it is also true that NFT games have a mechanism that does not end this boom transiently. Traditionally, in the NFT market, transactions using the cryptocurrency Ethereum required a high fee called Gas, which was a factor that hindered the entry of many people. However, in May 2021, the developers of Axie Infinity built a side chain called "Ronin" that does not require a gas fee, and succeeded in the transition. As a result, the popularity of Axie Infinity exploded at once.
Furthermore, the appeal of NFT games lies in the epoch-making system that allows you to sell characters (real money trading) as mentioned earlier. This is an act that has been strictly prohibited in traditional social games. However, from the perspective of core gamers around the world, the NFT game has made buying and selling in the currency of characters, which was a big admiration, a reality. Therefore, the current situation is that many praises have been raised saying, "You did it well!". Its appeal has endless possibilities, so if people all over the world are addicted to this world view and the social significance of the scholarship system is widely recognized, NFT games will never be popular. It doesn't end with transients, and it may grow by an order of magnitude from here.
However, since NFTs are built on the blockchain, it cannot be denied that they may be targeted by cyber attacks or become a hotbed for money laundering. Moreover, since the way of thinking about NFT is different in each country and the legislation has not caught up, it is unknown what kind of trajectory the NFT game market will take in the future.
Also see:&nbsp;<a title="NFT Development - The ultimate guide from NFT Game Widiland" href="../../blogs/nft-development-the-ultimate-guide-from-nft-game-widiland" target="_blank" rel="noopener">NFT Development - The ultimate guide from NFT Game Widiland</a>
<h2 id="mcetoc_1ga2s85aqft" style="text-align: justify;">Summary</h2>
In our company Relipa, we always try our best to give customers the optimum blockchain Development services.&nbsp;
Taking advantage of the strengths unique to outsource development, our services exceed expectations at a low cost, with the high technical capabilities and abundant experience from the engineers who are familiar with Japanese and well-qualified Bridge SE, IT Comtor team.
If you have any requests for NFT development or other Blockchain development, please feel free to contact us. We are&nbsp;sincerely&nbsp;looking forward for you.
Also see:&nbsp;<a title="Relipa's NFT Development Service (Japanese)" href="https://relipasoft.com/nft-development/" target="_blank" rel="noopener">Relipa's NFT Development Service (Japanese - Translated English)</a>

NFT game - Money from games? Just a piece of cake

With the era of Web 3.0, the third-generation of the Internet revolution, services utilizing blockchain mechanisms just cannot be ignored by their significant existance.
In 2021, when DeFi (Decentralized Finance) and <a href="../../blogs/nft-development-the-ultimate-guide-from-nft-game-widiland" target="_blank" rel="noopener">NFT</a> (non-fungible tokens) attracted a lot of attention, <a href="../../blogs/metafi" target="_blank" rel="noopener">Metaverse</a> began to come into the spotlight. Furthermore, there is a <a href="../../blogs/pros-and-cons-of-dao" target="_blank" rel="noopener">DAO</a> (Distributed Autonomous Organization) in the administrator-absent blockchain platform that supports the Metaverse.
DAO shows the best value of decentralized ecosystem based on blockchain that does not depend on centralized entities such as governments or large corporations, and the financial mechanism that applies DAO is SocialFi.
SocialFi can be said to be the newest blockchain service, and as in the first half of 2022, there is still no clear definition about this. However, the concept formation is definitely progressing, and if SocialFi spreads globally, there is possibly a crustal movement that will occur in the monetization method using SNS and blockchain.
<div class="mce-toc">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga0ubvsk36">What is SocialFi?</a></li>
<li><a href="#mcetoc_1ga0ubvsk37">How it was created?</a></li>
<li><a href="#mcetoc_1ga0ubvsk38">SocialFi - The main mechanism</a></li>
<li><a href="#mcetoc_1ga0ubvsk39">Example</a></li>
<li><a href="#mcetoc_1ga0ubvsk3a">Future Potential</a></li>
<li><a href="#mcetoc_1ga0ubvsk3b">Summary</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga0ubvsk36" style="text-align: justify;">What is SocialFi?</h2>
SocialFi is a concept that combines SNS (Social Networking Service) with Blockchain and Finance. In other words, it is an SNS platform where individuals can earn money.
Traditional SNS such as Twitter and Instagram have been used as tools for individuals to send various kinds of content. Since those services are provided by administrators of Social Companies such as Twitter and Meta..., profiles, comments, images and videos have all been managed on corporate servers.
SocialFi makes it possible for users to privately manage those things through a decentralized mechanism that applies blockchain technology in the absence of administrators. In addition to sharing contents it is also possible to monetize with crypto assets by exchanging them.
In other words, the comments, likes, images, and videos that have been posted on SNS until now will become the target of business and will be able to make them assets.
<h2 id="mcetoc_1ga0ubvsk37" style="text-align: justify;">How it was created?</h2>
The transition from Web 1.0, where the Internet was simply browsed, to Web 2.0, which made it possible to build interactive relationships on the Internet such as SNS, whose dramatic growth was encouraged by the huge tech companies (known as <a href="https://www.statista.com/topics/4213/google-apple-facebook-amazon-and-microsoft-gafam/#topicHeader__wrapper" target="_blank" rel="noopener">GAFA</a>).&nbsp;
FaceBook in 2004, YouTube in 2005, Twitter in 2006, and other SNS and video sites were launched one after another, and the building of interactive relationships and the formation of communities on the Internet began to spread explosively. Along with this movement, the growth of Amazon, which has built a major global economic zone in e-commerce, and Apple, which has enabled a major digital shift through the development of smartphones, has been remarkable. The market capitalization of only four companies, including Google and Meta, has grown to such as high level that exceeds the total capital of approximately 2,170 companies listed on the First Section of Tokyo Stock Exchange in Japan.
And the hidden side of this is the control and utilization of big data focused on personal information by giant techs. With the spread of SNS, the act of monopolizing enormous profits by accumulating and selling profiles, behavior histories, tastes and preferences data, regardless of the person's intentions, eventually came under worldwide criticism. Content, retweets, and personal data on SNS are not fully owned by users themselves, and if individuals can freely use these for business purposes, the profits are immeasurable.&nbsp;
Based on the background of such social dissatisfaction and needs, SocialFi was developed as an ideal system that anyone can join in without an administrator and can monetize while managing personal information and content by themselves. So, how SocialFi can help people meet these needs?
<h2 id="mcetoc_1ga0ubvsk38" style="text-align: justify;">SocialFi - The main mechanism</h2>
DAO is an organization built on blockchains equipped with smart contracts, such as Ethereum, where each member is involved in the operation without a central administrator.
All transactions in DAO are automatically executed by smart contracts and recorded on the blockchain, so third parties is impossible to view and make any action. DAO members have the right to vote on project policies by obtaining their own community tokens, while earning rewards through staking and trading.
SocialFi mainly adopts the method of converting content into NFT and exchange it on DAO. If you use crypto assets such as Ethereum, Solana, and Polygon, you can link comments, retweets, images, videos, etc. Let's look at an example to make the story easier to understand.
In 2021, the news that Twitter founder Jack Dorsey's first tweet in the world was sold at auction for $ 2.9 million (about 310 million JPY) spread all around the world. It was NFT which made this possible.
NFTs can usually be traded by being listed on a dedicated marketplace. When digital content is purchased with cryptocurrency, ownership is transferred to the buyer and continues to have unique value. In this way, digital art, videos, images, music, and the contents of tweets are traded.
It would be easy to understand if SocialFi is to shorten this process further and buy and sell NFTs as they are within DAO without using the marketplace. In other words, in the above example, you can not only send comments tweeted on Twitter, but also sell them as NFTs on the spot. Not only that, likes and retweets will also reflect token rewards.
With DAO, there is no administrators and you can trade using your cryptocurrency wallet address, so your information will not be exploited by anyone, and your data will not be sold without permission. It also has the advantage of significantly lower fees.
Even if YouTube distributes videos, most of the advertising fee is Google's revenue. However, when SocialFi becomes real, it will no longer be a dream to create excellent content and receive advertising fees directly from companies. With this, SocialFi is sometimes called &ldquo;Write to Earn&rdquo; or &ldquo;Social to Earn&rdquo;.
Just as celebrities and actors appear in commercials and earn a guarantee, it can be said that SNS will be used to invest in your own content and earn rewards. It is no exaggeration to say that if this business model is established, there will be a major shift in monetization methods using SNS and blockchain.
Related article: <a title="Pros and cons of DAO &ndash; Next generation organization" href="../../blogs/pros-and-cons-of-dao" target="_blank" rel="noopener">Pros and cons of DAO &ndash; Next generation organization</a>
<h2 id="mcetoc_1ga0ubvsk39" style="text-align: justify;">Example</h2>
One example of SocialFi is "Lens Protocol", the alpha version of which was just launched in May 2022.
Lens Protocol is a service that allows individuals to freely build decentralized social media networks. It runs on Polygon's blockchain, and you can develop your own worldview with content such as long texts, music, and games, and decide the distribution range and monetization method yourself.
User IDs work by linking cryptocurrency wallet addresses and NFTs, rather than using real names and email addresses like traditional SNS. Shortly after its release, over 50 projects have already been built on the Lens Protocol.
<h2 id="mcetoc_1ga0ubvsk3a" style="text-align: justify;">Future Potential</h2>
&ldquo;Fi&rdquo; in SocialFi means &ldquo;Finance&rdquo;, which means the reason why SocialFi exists is to earn money.
If it becomes possible to monetize through SNS, which was not in the past, it will become an incentive, and we can expect to see the emergence of attractive content that has never existed before, such as valuable texts, epoch-making digital art, and rare videos. If that movement becomes a prime mover, and companies as well as investors actively invest in SocialFi projects, the future will be greatly enhanced.
However, the revenue based on SocialFi is crypto assets, and if the tokens in the service rise, the reward amount will increase significantly, but if it crashes sharply, the remaining revenue will be insignificant. Therefore, it can be said that the unstable value compared to fiat currency is a major concern for SocialFi.
In the case of YouTube, which was mentioned as an example earlier, most of the advertising fees are certainly collected by Google, the administrator. However, content creators are paid in fiat currency, so the value is incomparably more stable than crypto assets.
SocialFi's examples are still limited, so it's unclear how much revenue can actually be expected. However, even MANA, a crypto asset that can be used in the NFT game <a title="Decentraland" href="https://decentraland.org/" target="_blank" rel="noopener">Decentraland</a>, which is popular as a DAO representing the Metaverse, is currently experiencing extreme fluctuations. Even looking at price trends since the beginning of 2022, there are examples where prices have fallen to less than one-third in just one month.
Even Decentraland, which is like a descendant of the Metaverse, which has been attracting worldwide attention after being requested by FaceBook to change its name to "Meta" in October 2021, is in this state. Therefore, even if the raison d'etre of SocialFi is recognized, it may take some time before it actually gains citizenship as a method of monetization.
<h2 id="mcetoc_1ga0ubvsk3b" style="text-align: justify;">Summary</h2>
SocialFi is a noticeable concept as a monetization method that utilizes blockchain, along with &ldquo;Play to Earn&rdquo; that earns from NFT games and &ldquo;Move to Earn&rdquo; that acquires crypto assets by moving the body such as walking.
However, at the present, the theory is somewhat preceding, and even if the scheme for practical use has been constructed, it is thought that many of them will still take time before they are released. Therefore, future trends will be under tight observation.
At Relipa, we help our customers build blockchain services step by step. If you are considering DX using blockchain such as NFT, DeFi, and IDO, please contact us.&nbsp;
Relipa exists to enhance growth mindset for modern young generation, create a positive, knowledge-sharing environment and people-first attitude for all members. By doing so, we provide professional and reliable services to our customers.

SocialFi - From the very first step to the bright-to-be future

Play to Earn (P2E), also known as GameFi - the NFT game in which you can earn rewards and money just by playing games. Not surprisingly, the number of users continues to increase in Japan as well as overseas as interest in the Metaverse rapidly increases.
Therefore, in this blog, taking Axie Infinity, the game which made blockchain game become famous as an example, we will specifically explain the business model of Play to Earn. Besides, some people still believe that Axie Infinity is a Ponzi Scheme, but is it really so? Let&rsquo;s find out in the blog!
<div class="mce-toc" style="text-align: justify;">
<h2>Table of Contents</h2>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8o">How to earn money with Axie Infinity</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8p">Business model in Season 19</a></li>
<li><a href="#mcetoc_1ga2p3d7i8q">Business Model Changes in Season 20</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8r">Axie Infinity is a Ponzi scheme?</a>
<ul>
<li><a href="#mcetoc_1ga2p3d7i8s">What is a Ponzi scheme?</a></li>
<li><a href="#mcetoc_1ga2p3d7i8t">Actually, Axie Infinity is not a Ponzi scheme</a></li>
</ul>
</li>
<li><a href="#mcetoc_1ga2p3d7i8u">Axie Infinity - Future Potential</a></li>
<li><a href="#mcetoc_1ga2p3d7i8v">In conclusion,</a></li>
</ul>
</div>
<h2 id="mcetoc_1ga2p3d7i8o" style="text-align: justify;">How to earn money with Axie Infinity</h2>
<a title="Axie Infinity" href="https://axieinfinity.com/" target="_blank" rel="noopener">Axie Infinity</a> is a pioneer and one of the most popular blockchain games in the world. The number of daily users reaches 3 million, and the feature is that you can use 3 monsters called Axie that you purchase yourself at the start and get rewards such as battles. This is Play to Earn (P2E).
There are mainly 4 ways of getting money:
<ul style="text-align: justify;">
<li style="font-weight: 400;" aria-level="1">Get rewards by playing game&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Earn money by selling owned or bred Axies as NFTs on the marketplace</li>
<li style="font-weight: 400;" aria-level="1">After purchasing Axies, rent them out to players and receive a certain percentage of the earnings as a reward. (Scholarship)</li>
<li style="font-weight: 400;" aria-level="1">Buy, sell and rent land in the virtual space to earn real estate income</li>
</ul>
Axie Infinity has been updated many times, and as in February 2022, season 20 was officially launched. Season 20 has made a big change in playing rule to how you earn in Axie Infinity. So, for the sake of clarity, let's explain the Play to Earn business model in comparison to Season 19.
<h3 id="mcetoc_1ga2p3d7i8p" style="text-align: justify;">Business model in Season 19</h3>
The play stage is divided into two types: Adventure mode and Arena mode.
Adventure mode is positioned as a trial version for beginners, where they will play and battle against the computer. By playing here, in Season 19, players may be able to earn 50 SLP in crypto a day. SLP is one of Axie Infinity's two unique currencies, the other being AXS, a governance token. By the way, the price of SLP fluctuated between 0.06 and 0.4 JPY throughout 2021. Therefore, in adventure mode, even if you could earn it, it was just about a few JPY a day.
In Arena mode, it is called PVP (person vs. person), where users battle vs each other online and earn money. This is the main battlefield of Axie Infinity. All users' battle results in arena mode were ranked at any time, and rewards of 3,000 AXS were distributed to the top 1,000. In the case of the first place, there was a time when the reward was as high as several million JPY.
Furthermore, when using scholarships, the mainstream distribution includes 70% of the earned rewards are invested and 30% are players. In this case, if the player earns 1 million JPY, 700,000 JPY is the share of the investor.
In addition, the world of Luciana where Axie inhabits is divided into 301 x 301 squares called Terra, and players can obtain this tokenized land and sell it freel. Land that can be traded as real estate has a rank, and in November 2021, the parcel classified as Genesis, which is the highest rank, was sold for 550 ETH (about 286 million JPY).
<img class="responsiveImage" src="https://api.relipa.global/storage/542/5348934.jpg" alt="" />
<h3 id="mcetoc_1ga2p3d7i8q" style="text-align: justify;">Business Model Changes in Season 20</h3>
In Season 20, which was launched in February 2022, major changes were made to the above earning methods.
One of the reasons for this is that the number of SLPs issued in its own currency has become so large that its price has fallen considerably.
If the original cryptocurrency declines, the value of Axie Infinity itself as GameFi will decrease, and the existence of Axie Infinity itself may be threatened. Therefore, in season 20, the SLP provided by the operator in adventure mode was reduced to 0 at once. By suppressing the number of SLPs, the aim was to make the price of SLPs to rise again due to market forces.
In other words, the 50 SLP you could get in a day by playing in adventure mode became 0, and the 25 SLP you could get by clearing 3 daily quests also became 0.
Instead, AXS payouts in Arena mode has ] raised by an order of magnitude. Specifically, the top 1,000 was only available, but it was increased to 300,000 and 300 times, and the distribution amount increased from 3,000 AXS to over 110,000 AXS. In adventure mode for beginners and light users, there is no real reward, and by that amount, introducing a generous reward system for heavy users in arena mode, it can be said that GameFi's characteristics have become even stronger.
Until Season 19, only 1,000 AXS can be obtained, so the company switched to a strategy that gives users who had given up on high rankings a sense of hope that they might be able to reach the top 300,000.
In the blockchain game market, new popular content is appearing one after another, as if to catch up and overtake Axie Infinit. In order not to lose users to these forces, it can be said that the above-mentioned drastic incentives have been set.
<h2 id="mcetoc_1ga2p3d7i8r" style="text-align: justify;">Axie Infinity is a Ponzi scheme?</h2>
These days, especially since the middle of 2021, Axie Infinity has been attracting worldwide attention as a pronoun of P2E, but there are people who criticize its business model as a Ponzi scheme.
<h3 id="mcetoc_1ga2p3d7i8s" style="text-align: justify;">What is a Ponzi scheme?</h3>
A "Ponzi scheme" is a fraudulent scheme in which investors are solicited for investment by making a profitable investment story, but do not actually manage the investment. Investors believe that part of the profit generated by investment is being paid as dividends, but in reality, no investment is being made. Therefore, when the number of new investors disappears or decreases, this mechanism will reach its limit and will surely fail.
This type of fraud has been practiced for a long time in both the East and the West, and even in Japan, major fraud cases have come to light repeatedly at a pace of once every few years.
<h3 id="mcetoc_1ga2p3d7i8t" style="text-align: justify;">Actually, Axie Infinity is not a Ponzi scheme</h3>
The issue that determines whether Axie Infinity is a Ponzi scheme is whether or not the investor's investment is managed in some way.
In other words, in the case of Axie Infinity, is the external money when the player purchases the three Axies required for the game, or the commission when the player sells Axie as NFT. The point is whether it is used only for distribution as a reward or not.
One point worth noting here is that if a player wants to win high prizes in Arena mode, he or she should not just use the same Axie, but rather introduce Axies with high fighting power from time to time and update the strategy, one method that can be used to do this is breeding, where two Axies are used to mate to create a new Axie. There is no guarantee that a strong Axie will be born, but if you succeed, you can get a new Axie with high combat power, and you can expect to rank higher.
During this bleed, players will have to pay SLP in their own currency, which will burn their crypto assets. In other words, if the number of SLPs themselves decreases, the price will increase. In this way, Axie Infinity has a mechanism where the operator side adjusts the price, and it can be said that the element of operation is included here.
Looking at the flow of external money such as Axie purchase funds as player rewards, it can be interpreted as a Ponzi scheme. However, as long as the operator of Axie Infinity issues its own crypto assets, AXS and SLP, which are actively traded in the market, and has additional operational elements such as price adjustment by burning as described above, it cannot be called a Ponzi scheme because it can be judged that a mechanism that is difficult to fail is intentionally constructed.
In addition, Axie Infinity constantly distributes useful information on social media and dedicated sites, values ​​dialogue with the community, and otherwise makes every effort to earn the trust of many users and investors. In fact, Season 20 was also redesigned after carefully listening to the voices of the community and emphasizing their content. Considering these management stances, it is clearly unreasonable to conclude that it is equivalent to a Ponzi scheme, which is based on deceiving investors through fraud.
<h2 id="mcetoc_1ga2p3d7i8u" style="text-align: justify;">Axie Infinity - Future Potential</h2>
On March 29, 2022, Sky Mavis, the operator of Axie Infinity, announced that the Ronin Network, which is the base of the game, was hacked and about $625 million (about 77 billion JPY) was lost.&nbsp;
The outflowed funds were ETH (Ethereum) and UNDC, not including AXS and SLP. However, it was said that it included the funds of players and investors, as well as the earnings of the game, which caused a great shock to those involved. The next day, Skye Mavis announced a full refund, after which the attackers were blamed on the infamous North Korean hacking group Lazarus.
This amount of damage is said to be the largest in the history of cryptocurrencies, and Skye Mavis, who was aiming for even higher heights in season 20, was greatly disappointed. As evidence of this, AXS, which was around 9,000 JPY in March of the same year, plummeted to the 2,400 JPY level in June.
It can be said that we are now at a critical stage where the true value of Sky Mavis will be put to the test as to whether the full amount of damage can be compensated, and how much Sky Mavis can regain trust, including the establishment of measures to prevent recurrence.
No one can honestly predict what the future holds for Axie Infinity. However, from September 2021, Axie Infinity will support staking, and like many cryptocurrency projects, a mechanism has been established to receive rewards simply by depositing AXS. In addition, it is worth noting how far the P2E rule change due to Season 20 and the real estate transaction market in the virtual space will grow together with the Metaverse boom.
A notable feature of Axie Infinity, as already mentioned, is the strong tendency to pick up the voices of users and communities and reflect them in the system. That's exactly what happened with Season 20.
There is no doubt that the community-first mindset of providing an easier-to-use and more attractive environment without neglecting player dissatisfaction has won the hearts of many users and has gained strong support. Now that we are on the brink of a crisis, we must keep an eye on this critical moment to see if the management attitude of the past will speak for itself, and whether it will succeed in overcoming hardships and leading to a revival.
<h2 id="mcetoc_1ga2p3d7i8v" style="text-align: justify;">In conclusion,</h2>
The P2E business model at Axie Infinity is never static. Sometimes, like this Season 20, there are major rule changes. It can be said that this is a situation unique to blockchain games that are based on crypto assets and NFTs.
In particular, due to the interest rate hike policy originating in the United States from the end of last year and Russia's invasion of Ukraine, the cryptocurrency market in 2022 has caused considerable turmoil. Even the most popular Bitcoin and Ethereum have fallen nearly half of last year's all-time highs. Furthermore, we cannot predict or be optimistic about the trends of other altcoins such as AXS and SLP.
Therefore, even if you make money with Axie Infinity, you will need to calmly collect information, including the status of the hacking case and further rule changes, and be involved carefully.
At Relipa, we help our customers with their blockchain business. If you are thinking of DX with a safe and competitive blockchain service, please let us know. Our experienced engineers look forward to working with you.
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Axie Infinity and Ponzi Scheme - Play more, earn more?

From 2010s, Smart contract - which was advocated in the 1990s - will gradually get the whole spotlight along with the growth of blockchain technology in general. Ethereum blockchain has become the trigger one.
With the appearance of Ethereum, some applications (Dapps - Decentralized application) have been added to crypto assets, which were merely means of remittance and payment. As a result, services and platforms originating from Ethereum such as NFT, DAO, DeFi, and DEX were born one after another, attracting the attention of investors and wealthy men from all over the world, and a lot of funds flowed in due to the future potential. A big Ethereum ecosystem is been built as this result. In addition, blockchains equipped with Smart contracts such as Polygons - Ethereum&rsquo;s second layer and Solana - the famous one as an Ethereum killer have been developed, and have grown to surpass Ethereum.
<h2 style="text-align: justify;">About Smart Contract</h2>
Firstly, let's explain the basics of smart contracts.
<h3 style="text-align: justify;">What is Smart contract?</h3>
Various economic and social activities are based on legal contracts, and all plans and actions are carried out according to the rules set by the agreements in the contract. In modern society, such as real estate transactions, construction, manufacturing, renting, buying and selling, and employment, normal organizational management, national and local governance, and the formation of various communities are impossible without contracts.
"Smart contract" means to automate all the above contracts, and the mechanism is mainly constructed by programming. Smart contracts are the concept advocated by computer scientist - Nick Szabo in 1994, but the term has been used frequently in recent years only in areas of "Blockchain". Specifically, it means that the program is automatically executed according to predetermined rules, starting from transactions on the blockchain platforms or other external information.
<h3 style="text-align: justify;">Ethereum's main protocol</h3>
Ethereum is equipped with smart contracts as a blockchain protocol for crypto assets. Bitcoin, which had been released before, also had smart contracts, but it was not worth the attention because it was beyond the scope of remittance and trading. However, in the Ethereum area, there was a "EIP (Ethereum Improvement Proposals)" where developers from all over the world solicited proposals in an open space, and with the launch of Ethereum, innovative actions were taken in rapid succession. The most important is the development of a smart contract standard called "ERC (Ethereum Request for Comments) 20" released in 2015 and the number of tokens using it. Until then, crypto assets were incompatible because they were operated according to the developers&rsquo; set standards, and in order to ensure compatibility on exchanges and wallets, additional work was required to implement a different program. In order to prevent this problems and improve convenience, many users and engineers have called for standardization, and the unified standards for smart contracts called "ERC20" was developed to meet those needs.
All tokens created using ERC20, the 20th proposed and developed in EIP, are compatible, such as Tether, Chainlink, Binancecoin (BNB), DAI (DAI), etc. Cryptocurrency assets that may achieve a break later will be born one after another. And by utilizing the crypto asset blockchain based on these ERC20 standards, various performances such as voting, crowdfunding, fee settlement, etc. can be automatically executed without the intervention of a centralized administrator.
<h2 style="text-align: justify;">ERC721's Epoch-making Role</h2>
ERC20 creates all the same Fungible tokens as currencies and stocks. For example, Mr. A's 100 JPY and Mr. B's 100 JPY have exactly the same value, and even if they are exchanged or handed over to someone else, they are still the same 100 JPY. This is "Fungible". About two years after this ERC20, the "ERC721" was developed in 2017. What remarkable about ERC721 was that it is possible to develop "non-Fungible" tokens. The smart contract installed in the ERC721 has the function of proving unique ownership by linking it with digital data such as videos, images, and music. As a result, "NFT (Non-Fungible Token)" was born.
In the first place, digital data can be easily copied by anyone by a device. No matter how good the digital art is, it can be duplicated as many times as you like, so once it was copied, it was not possible to prove which one was the original. However, the ERC721 standard smart contract made it possible. Originally, ERC721 was developed for the NFT game "CryptoKitties" launched in 2017. The epoch-making characteristic of this game is that not only can you enjoy breeding cats, but you can also buy and sell those cats as NFTs as the only character that each player has.
The birth of ERC20 was welcomed by many people involved in Ethereum and became a hot topic, but it was ERC721 that made an impact. The release request of ERC721 in 2017, NFT was suddenly becoming popular, but in 2021, when NFT art is traded at a high price, it will suddenly become a stardom. Along with this, the price of Ethereum increased about four times in just half a year, more than five times in the latter half of autumn, and at one point it soared to nearly 560,000 JPY, marking the highest price ever. Ethereum's smart contracts will allow other platforms such as DEX (Decentralized Exchange), DAO (Decentralized Autonomous Organization), and DeFi (Decentralized Finance) to trade in the absence of centralized managers for a short period of time. Moreover, they are not functioning alone, but by merging with others, and they are steadily building the Ethereum economic zone, which would be the main axis of Web3.0.
<h2 style="text-align: justify;">Differences between ERC721 and ERC1155</h2>
ERC1155 is also the standard one that is drawing attention in ERC. The features of ERC1155 are easier to understand than that of ERC721. For example, in the case of NFT games, the ERC721 smart contract had no choice but to list the NFT characters and items in the game individually on the marketplace. The Ethereum blockchain has a "scalability problem" in which the fee (gas fee) charged at each transaction is by far the highest compared to other crypto assets, and the transaction speed is delayed. With ERC721, even if you want to list all characters, you can only list them one by one, so you will have to pay a fee each time. This would increase the gas fee, which would not only impose a burden on many users, but could also be a barrier to entry. Therefore, ERC1155 was newly developed. With the ERC1155 smart contract, you can list NFTs in bulk on the marketplace, which not only speeds up transactions, but also keeps gas costs low. Furthermore, not only NFT but also several types of tokens including Fungible tokens can be sent to multiple addresses at once, ensuring unprecedented convenience. Because of these features, the ERC1155 is also known as the "multi-token standard."
When highly functional standards such as ERC20, 721, and 1155 are developed and released, ten or hundred thousand of tokens are developed and disappear in a short period of time. However, among them, crypto assets that have been highly evaluated by influential investors and wealthy people remain in the market, and we are repeating the movement to raise a large amount of funds and form new projects. In the world of crypto assets, there is no perfect system, so it is quite possible that new ERC standards with higher utility value and effectiveness will lead to further innovation. Ethereum and related services are rapidly becoming more connected to the Metaverse. Keep an eye on future trends, including the rise of crypto assets equipped with smart contracts other than Ethereum.
<h2 style="text-align: justify;">In conclusion,</h2>
Smart contracts are indispensable for building distributed networks using blockchain, which will play a leading role in Web3.0. Blockchain still has a strong image of crypto assets in the world, but in reality, it is the construction of supply chains centered on finance, manufacturing, entertainment, art, etc. There are a wide variety of usage, including examples where electronic medical records are managed by blockchain.
The potential of smart contracts is immeasurable, and we all are looking forward to the widespread penetration of an ecosystem that is safe, convenient, speedy, and functions without human intervention.
At Relipa, we are developing the blockchain related services and products. If you are thinking of DX using blockchain such as NFT, DeFi, Metaverse, please let us be your partner. Experienced engineers are looking forward to hear you.

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