Axie Infinity Caps SLP Supply
Axie Infinity is changing the monetary policy of Smooth Love Potion ($SLP), implementing a deflationary policy and capping its supply at 44 billion while introducing a buyback and stability fund.
The Deets
- 📉 SLP supply capped at 44 billion
- 🔥 For every 10 SLP burned, 2 SLP minted to a buyback & stability fund
- 🌟 Targeting 2% deflation for SLP
The Bulk
In an effort to create a more stable and sustainable ecosystem, SLP's supply is now capped at 44 billion. This decision comes in response to the dynamics of digital economies and the need to balance token supply with demand.
To further stabilize the currency, a new mechanism is being introduced: for every 10 SLP burned, 2 SLP will be minted to a dedicated buyback and stability fund. Initially, this fund is seeded with $60,000 USDC. This strategy deviates from traditional central banking systems, which often target a 2% inflation rate, as SLP aims for a 2% deflationary model.
While SLP has been essential for the breeding process and the overall growth of the Axie population its abundance and scarcity have fluctuated due to various factors, leading to a need for a more controlled economic approach.
📊 By the Numbers
$SLP is down 2% in the last 24 hours, but is up 14% over the last 30 days to $0.003.
🔜 What's Next?
The SLP supply cap and the introduction of the buyback & stability fund are just the beginning. As the Axie Infinity team continues to monitor and adjust these policies, the future of SLP and its impact on the digital economy remain a focal point of interest.
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