Axie Infinity token surges after developers overhaul rewards system

Axie Infinity’s AXS token surged 123% after developer Sky Mavis announced major changes to in-game reward mechanics.

The blockchain game launched its new season on January 21 with AXS rewards no longer tradable by default.

Players will now earn bAXS, a one-to-one backed token that can be used in-game but cannot initially be transferred.

Developers said the move is designed to reward real players while discouraging bot-driven farming activity.

Axie Infinity co-founder Jeff Zirlin announced the changes on January 14, triggering the sharp rally in AXS.

The update follows years of declining engagement after Axie’s explosive growth during the 2021 play-to-earn boom.

Bot activity increased as token rewards lost value and genuine player earnings became unsustainable.

“These changes are designed to benefit real players,”

The developers said, adding:

“They remove incentives for the bot-heavy experience we see today and give us space to polish new products.”

Investors are optimistic the changes will reduce AXS supply entering the market and potentially trigger a supply shock.

Sky Mavis said future adjustments may also address oversupply of Axie creatures through increased burn mechanics.

At the time of reporting, Axie Infinity price was $2.59.