Axie Infinity is closing in on $2B in the staking of its AXS governance tokens. These AXS tokens are left untouched for a set amount of time, allowing awards to accrue.
A huge airdrop of $60M in AXS to early adopters, increasing popularity of play-to-earn gaming protocol, and the launching of the staking platform on Sept 30, 2021, saw AXS tokens hit $118 by Oct 1. As of Oct 4, 2021, the price of AXS hit an all-time high of over $150.
Staking incentivizes users to hold the tokens which support the growth of the Axie gaming ecosystem. Rewards vary with staking amounts and expertise in the game and annual percentage rates (APR) for AXS tokens are currently sitting at 189%.
By Oct 2, $1.17B had been staked, and the most recent figures indicate that the $2B threshold has nearly been crossed.
AXS staking process
Axie Infinity users can participate in staking to earn rewards. The team has noted that better rewards may be given to people who have ‘measurably added value to the Axie ecosystem’ in the future.
Claiming is the process whereby total AXS rewards are immediately made available for breeding or exchanging Axies in the Ronin wallet. A 24-hour window must elapse before another claim is made and claimed rewards can also then be re-staked.
In the future, staking AXS will give voting rights and a say on how the Community Treasury Fund is used.
Sneaking up on global gaming giants
Sky Mavis, the producer of Axie Infinity, has now become the fifth-largest video game company in the world, rubbing shoulders with entrenched companies like Activision, Blizzard, Nintendo, Roblox, and Electronic Arts, with a market cap in excess of $29.9B. It stands among crypto gaming heavyweights like Decentraland, Mythical Games, and Dapper Labs, who were responsible for the infamous CryptoKitties collectibles.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.