The Axie Score is a new concept that was introduced with the recent Axie Infinity Shards announcement.
What is the Axie Score?
Staking has been a hot topic in 2020 with DeFi taking center stage for much of the year. The idea that a person can be rewarded for “staking” a portion of their money/tokens is not necessarily a break-through concept, but high interest rates and returns have made it a popular model for many new cryptocurrency projects. The Axie team, (and Delphi Digital who helped design the token model), learned from many of the mistakes they had been seeing with these other projects and implemented changes to help avoid the same pitfalls. One of these pitfalls is a lack of commitment from the investors – people who staked to earn rewards could pull their stake out at any time. Axie is using the Axie Score to incentivize people to stake for longer periods of times, and to help align investors values with players, and the overall game.
This score is weighted by both the time and amount staked with the formula being (stake*time)^.5+(stake*100)^.5. If someone unstakes some of their AXS, they lose a proportionate amount of score. – Delphi Digital
Staking your AXS doesn’t just get you a large annual yield, it also enters you into a lottery for limited edition assets and items. These assets could include anything from distributions of AXS from the Treasury, Rare Axies, or items that aren’t readily available. These have been noted to be valuable and rare. Your Axie Score will act somewhat like tickets in a lottery; the higher the score you have, the better chance you’ll have of winning. Due to the Axie Score’s structure, players who stake for a long time with a medium amount of AXS staked will be on similar playing fields as whales. As far as we can tell, there may also a cap (Axie Score of 11,487) to keep the playing field somewhat even for all players, although Jiho did mention that no cap has been “officially determined” yet. This lottery will start once staking begins, so while we don’t have a lot of info about what kind of prizes to expect just yet, we’re expecting that to occur by the end of Q2 2021, when the roadmap states staking rewards will be going live.
Fairness in Function
The Axie Score is a function of how much you stake, and how long you stake it for, however Psycheout noted in the initial Binance IEO announcement, that playing and voting for various DAO proposals will also be combined and used as part of your overall Axie Score. Its important to review the chart released by Delphi Digital as well (AXS Token Model – Last link on this page). I’ve condensed the Axie Score chart to make it a little easier to consume below:
As you can see your score improves over time, no matter how much you have staked. The currently available chart shows that in order to get the max Axie Score for your amount of AXS, you would have to stake for a little over 2 years, or 25 months. We can also assume that the max stake that contributes to your Axie Score could be 100,000 AXS (again, Jiho HAS stated that no official caps have been determined yet however). The team has said that the goal is to make the lottery fair between players who have a lot invested and players who have invested for a long period of time, so its unclear at this point how the score relates to overall lottery tickets. We can see clearly from the chart however that the person staking 1000AXS for 18 months, has the same chance to win as the person who just staked 10,000AXS this week.
This will be updated once we have a better idea of what these rewards look like, once staking starts to take place.