The Axie Marketplace will see its transaction fee jump to 5.25%
Axie Infinity has announced an updated fee structure for its native marketplace. It will introduce a higher transaction fee starting March 7th. Currently, the transaction fee Axie Marketplace charges is 4.25%. However, starting next week it will jump by one percent to 5.25%.
The reasoning behind this increase is to allow creators to be rewarded for growing the Axie Infinity community. According to Sky mavis, this will benefit everyone in the ecosystem. According to the official announcement, next week Sky Mavis will introduce Axie Creator Codes. These will allow Axie supporters who share their artworks, gameplay, and thoughts about the game with the Axie social media community to receive contribution rewards.
In essence, by increasing the marketplace fee to 5.25% on all transactions, the Axie Infinity team can reward creators who refer new players to the game. Most importantly, the goal of the fee increase is not to impact the Axie Community Treasury, but to give back through the creator codes program.
Creator codes are not a revolutionary approach in the gaming industry. Epic Games, the creator of big titles like Rocket League and Fortnite, also uses it in their Epic Games Store. However, as Axie has one of the biggest play-to-earn communities globally, this seems like an interesting step for the project.
Axie players are not entirely satisfied
Creator codes might be beneficial to players who have a large following and a developed community surrounding their personal social media accounts. Unfortunately, the creator codes program will not bring rewards to everyone. While a select group of players who have enough of a following will be eligible to get a creator code, all players will have to pay the higher transaction fees.
Some players have already voiced their concerns with the new mechanic. According to some, the new fee rise is unfair, as it will take away funds from all players to give only to a select few. Additionally, Axie fans point out that the game is growing organically, because of the extensive play-to-earn mechanics, and not so much because of creators and influencers.
Other players are not too worried about the 1% fee increase, saying that it is a nice way to reward streamers and influencers who are struggling to make money as content creators. Currently, the cheapest Axie on the marketplace sells for about $22 dollars, which means the 1% going to the creators’ fund from its sale will be worth $0.22.
However, if we look at the cheapest Axie land NFT on the market, the calculation is a bit different. At the time of writing, the cheapest Axie land is up on the market for 2.5 ETH, or about $7436. With the current fee of 4.5%, this will cost the seller an additional $335. However, with the increased fee, the cost would jump to $410, with the additional $75 going to the creators’ fund. This is not a negligible increase, especially if the NFT you’re looking to sell is expensive. Considering this, the question remains, will the marketing benefits for the ecosystem outweigh player dissatisfaction?
DappRadar will continue monitoring the Axie Infinity ecosystem, as new improvements and developments come to the horizon. If you want to learn more about Axie Infinity check out the links below. Additionally, you can follow DappRadar on Twitter to get the latest Axie news first.