What is the issuance and circulation of SLP coins?

Issuance and Circulation of Smooth Love Potion (SLP) Coins1. Issuance Background and Purpose

Smooth Love Potion (SLP) is the native ERC-20 token of the popular play-to-earn game Axie Infinity. It was first issued in July 2021 with the following primary purposes:

• Rewarding players for in-game activities, such as breeding and battling Axies (game characters).
• Facilitating in-game transactions, such as purchasing Axies and items.
• Enabling players to participate in governance decisions through SLP staking.

2. Token Supply and Circulation

The total supply of SLP coins is capped at 1 billion. As of March 2023, approximately 600 million SLP coins have been issued and are in circulation.

3. SLP Issuance Mechanism

SLP is primarily issued through in-game rewards. Players earn SLP by:

• Winning battles against other players.
• Completing daily quests.
• Breeding Axies.

The issuance rate of SLP is adjusted dynamically based on the supply and demand in the game economy.

4. SLP Distribution

SLP is distributed as follows:

• 60% to players: Rewarded for in-game activities.
• 20% to treasury: Controlled by the Axie Infinity team and used for ecosystem development.
• 20% to stakers: Distributed to players who stake their SLP tokens for governance rights.

5. Use Cases

SLP coins have multiple use cases within the Axie Infinity ecosystem:

• In-Game Rewards: SLP is the primary reward currency for players, encouraging them to engage in various game activities.
• In-Game Transactions: SLP is used to purchase Axies, items, and services within the game.
• Governance: SLP holders can stake their tokens to participate in governance decisions related to the game's development.
• Staking Rewards: Staking SLP earns rewards in the form of additional SLP tokens and rare in-game items.