DeFi Meets CryptoKitties: Axie Infinity to Introduce Governance Token

Axie Infinity is now the 11th-ranked NFT game by lifetime trade volume following a surge in players eager to get their hands on the platform’s governance token.

DeFi is converging with non-fungible tokens (NFTs), with the Ethereum-powered game Axie Infinity seeing a spike in users ahead of the expected launch of the project’s governance token.

Axie Infinity is a decentralized turn-based strategy game that draws influence from Pokemon and Tamagotchi with players able to breed, battle, and trade NFT-based fantasy creatures dubbed ‘Axie’.

Since launching in February 2018, the game has attracted more than 7,000 tokenholders, and more than 4,500 active marketplace participants. It was recently ranked the No.11 NFT game by lifetime Ether volume with 4,570 ETH.

Based on the number of NFT owners, Axie has outgrown all of the titles ranking in the top ten by volume, except for Gods Unchained and CryptoKitties.

Axie Infinity shares some characteristics with DeFi, with users composing guides instructing players how to ‘farm’ Axies to generate a consistent income.

Players can currently earn the ‘Small Love Potion’ (SLP) utility token by playing the game, with the token being required to breed new Axies. SLP is currently trading for $0.046 and has a 24-hour trading volume of $38,200.

The recent spike in Axie Infinity users has been attributed to anticipation for the project’s upcoming governance token.

The token was announced August 9 by the game’s co-founder Jeff Zirlin, who tweeted that a native governance coin would launch before 2021.

Other projects explore NFT-DeFi convergence

Axie is not the only crypto gaming company looking to bridge NFTs and DeFi, with Polyient Games announcing it will issue a membership and rewards ERC-20 token that can be used to provide liquidity to the market’s pool. In July, the company also revealed it would bring an “NFT-focused decentralized exchange” onto Ava Labs’ Avalanche platform.

Speaking to Cointelegraph, Polyient’s Craig Russo described NFTs as beginning to emerge as “a standalone asset within DeFi,” emphasizing the growth of lending markets and fractional trading for the tokens.

A protocol for bundling Compound (COMP) positions into tradeable NFTs has also been submitted to the Kyber DeFi virtual hackathon.

Crypto Porn Startup Says Its New Governance System Is Better than DAOs

PornVisory is moving to a decentralized governance structure based on the DFO standard, which allegedly allows greater user influence than DAOs.

Cryptocurrency pornography startup PornVisory is moving to a decentralized governance structure based on the (decentralized flexible organization) ​DFO standard.

According to PornVisory, DFO governance will enable token holders to propose changes and vote on governance aspects that will be subject to community voting. Platform users will need to stack the platform’s PVY Ethereum-based tokens to access the governance system.

The announcement comes shortly before the first airdrop of the firm’s PVY token scheduled for the end of the month.

DFOs are on-chain organizations that closely resemble decentralized autonomous organizations that further emphasize the community’s ability to shape the services. 

PornVisory’s founder, Veronica Noschese, told Cointelegraph that while a DAO handles some control over to the users, a DFO allows for any aspect of the decentralized application to be changed.

Noschese explained that DAOs allow the community to set the DApp’s configuration parameters, while DFOs allow them to change the code thanks to a modular design. Because of this, she said that the community can even determine the algorithms that govern the ecosystem:

“In a DFO users can cast votes in an anonymous and censorship-resistant way, because the code can be saved on-chain and becomes readable to all forever.”

Noschese concluded that decentralization is the feature that motivated her firm to move into the blockchain space. She said that she believes that users are important for any endeavor so they wanted them to be in control.

As Cointelegraph reported in late May, PornVisory plans to reward its users with tokens for watching adult content on its platform. The tokens can then be used to pay for premium content, interact with models on a dedicated live-streaming platform and spent in specialty shops.