There is nothing held closer to the teams chest (yes, not even land gameplay) than the economic design of Luna, the native currency/token of Lunacia. There have been many theories about the tokens eventual use, but not much confirmed by the team.
Axie Infinity is unique in that it combines online/internet gameplay with real world value. We’ve seen plenty of games with their own economy (World of Warcraft, RuneScape, Diablo3), but rarely do the in-game currencies cross paths with traditional financial markets. Cryptocurrency in general tried to bridge this gap, but a large part of the reason a game like Axie Infinity is so exciting is because it blends these various financial models with whats expected to be a highly addicting game.
The team’s ambition, and care in the delivery of this economy, only fuel that passion in its community. The reason Luna is so “hush, hush”, is because getting it right is getting Axie Infinity right, and getting Axie Infinity right is successfully intermingling the Lunacian and Real World economies.
- Total Supply: 6,000,000 Tokens
- Max Supply: 420,000,000 Tokens
- At the time of this writing, there were 950 Luna Holders
Updated Info for the Luna Token can be found on EtherScan.
Where did LUNA come from?
Luna was stealthily announced along with the initial land sale. Under the area where you could purchase chests, was a little yellow banner stating that referring other users to the land sale will provide the purchaser 10% of their money back in LUNA tokens. There have also been several promotions, events, and tournaments with LUNA given as prizes to the community.
What can you do with LUNA?
Initially, a LUNA holder was only able to purchase new chests with it in the land sale. Now that the 1st quadrant has sold out, we are left guessing as to what LUNA will be used for next. Fortunately, there are a few hints sprinkled around past announcements as well as use cases alluded to by the team in Discord. From what we gather, Luna may be able to be used on:
- Land and Chests (Quadrant 2-4 sales to be announced!)
- In game items like Potions, Chimera Beacons, etc.
- Upgrading your Axies (lvl 1 through lvl 4 parts).
- Upgrading your Land.
- Building Blueprints.
- Stake Luna to unlock different structures.
- Real world merchandise like TShirts, Hoodies, and Plushies.
- Player Services such as crafting or smithing.
- Axie purchases from the Axie Labs.
Another interesting concept provided by Luna is its ability to grant the holder Governance over the game. This will allow the community, aka LUNA holders, to have a voice in big decisions within Lunacia. What does this mean? It seems that one of the AI teams eventual goals is true decentralization from a central organization. Similar a town council, Luna can potentially give holders the ability to give the yay or nay on buildings being built, businesses being created, or possibly even economic decisions like token burns. We don’t know a whole lot about this mechanic yet, but expect more information as land gameplay nears its release.
The Economics of Lunacia
Luna starts getting interesting when you combine everything we know about land game play. We’ve been able to gather enough to put together a rough understanding of how Luna travels in Lunacia.
Remember all those things you can spend LUNA on we discussed above? Well that LUNA is expected to go back into circulation via Resource Node Drops, Chimera Drops, Promotions, and Tournament Prizes. Its anticipated that they will also except other currencies (USD, ETH, Bitcoin, etc.), which will be used to buy back LUNA tokens from an exchange recirculate. Additionally, Sky Mavis takes a 4.5% fee from their Marketplace (as well as 1% from OpenSeas), which is rumored to be redirected towards these buybacks as well. Essentially all transactions within the Axie Infinity Universe will directly affect LUNA.
So what happens after its distributed via the various drops. Players who earn the LUNA must bring it back to their land in order to keep it. Some of this LUNA is dropped along the way, directly benefiting the land owners it drops to. Land closer to the nodes (designated by the pink spaces below) will benefit from a higher frequency of LUNA drops.
It also seems that larger quantities of LUNA will occur closer to the center of the Map. The better the land, the better the drops.
Currently, until land gameplay is released, there is no current way to acquire LUNA other than trading for it or earning it in a tournament or promotion. However from everything we’ve seen so far, we can make a few guesses about how to increase your earnings once the Alpha begins:
- Own Land. Preferably closer to nodes. Higher rarity = more LUNA (Genesis > Mystic > Artic > Forest > Savannah)
- Build shops on your Land to sell items.
- Purchase a MakerDao item to keep on your land (Axies have a greater chance to spill LUNA when traveling over land this item is placed on. Gold 5%, Silver 2%, Bronze 1%)
- Play frequently. LUNA will be available in normal gameplay!
- Its rumored that certain Mystic Axies may enable faster LUNA accrual through quicker battling, or being able to craft better resources.
The Name Change
14 months after the initial land sale began, and the quiet launch of LUNA, it was noted in discord that the LUNA name will be getting a makeover – after all, there are several coins with the name LUNA in existence already. There is no expected date for when this change may happen, but current LUNA holders can feel confident knowing that the new token will be given/airdropped to wallets where LUNA is held.
As to what the name may change to? Some sleuthing by “Owl” in the discord turned up a new ENS purchase in the Axie Infinity Team’s ENS Registry. Will VERTH be the new LUNA? Only time will tell.
In discussing its worth with members of the community, Baronar provided the following insight:
At the present time, LUNA is soft capped in the sense it is not readily obtainable. The only methods presently available to acquire LUNA are to purchase it from another holder or receive LUNA as a reward from Axie Infinity. Despite the 6M cap, careful analysis of the present holders of LUNA reveals the high likelihood that there are less than 1M LUNA in circulation at the present time. Given calculation of the“10% referral bonus” of LUNA in the Phase 1 land sale, LUNA was specifically tied to eth’s value in USD. LUNA to USD was figured at the rate of 1 LUNA equivalent to a US dime ($0.10). Now that the referral bonus is complete, LUNA is highly unlikely to remain tied to USD in any way. I would argue that the present digital exchange value of LUNA is many multiples of the original “referral bonus” value. Particularly given the utility presented by LUNA in the primary material from Axie Infinity with regard to land play, governance and so on. I would even argue that it might be more appropriate that 10 LUNA might be closer to an eth dime (0.10 eth)today.Baronar (Axie Infinity Discord)
Baronar asked to remind readers that this is purely speculation and not meant to be investment advice.
Want to Buy LUNA?
Before you go buying LUNA, don’t. At least not yet. LUNA is being migrated to a new token (see the name change segment above) and snapshots of the blockchain have already been taken. What this means is that when the new token is distributed, an equivalent amount of the new token will be transferred to the old holders (at the time of the snapshot) in LUNA’s place. This means, that buying LUNA now will not mean you get the new token. At this point its best to wait until after the new token is issued.
Currently, LUNA isn’t available on any exchanges, but the sources below will be the most likely first places it might pop up.
- ForkDelta (No open orders at time of writing)
- Asking players to sell or trade on the Axie Infinity Discord.