What is Axie Infinity and Dispute Resolution? Let’s find out with our company through the article below
This last week I gave a presentation for ASEAN Legal Alliance on NFTs, Axie Infinity, and the major problem digital assets present for national sovereigns. I’ve previously written in this space about the difficulty of the Metaverse being largely owned and operated by an American company. Citing the United States reaction to Chinese limitations to Facebook in order to protect their citizens from having their data collected by a foreign company in a country currently at odds with them. That Facebook and, by extension, the Metaverse collects more data on its users than any other social media provider and that doing so presents a very real risk to foreign governments who wish to protect the data of their citizens.
This problem of data privacy being controlled by a bully company in a bully country is only the beginning of the problem, especially for countries that may not be in the exact sphere of influence of the Western alliance. Let me explore the issues using Axie Infinity as a definite example for ease of discussion. (Also as a way to localize the problems to Vietnam and ASEAN.)
As I’ve written elsewhere, Axie Infinity is an NFT game using the play-to-pay model that has become increasingly popular over the last six months. Users buy NFT avatars, or Axies, for a given amount in order to play. This amount ranges in an amount just shy of one thousand dollars worth of AXS, one of the games cryptocurrencies. With these Axies, users can then breed more Axies which they can sell, or battle other Axies to earn SLP, the game’s other cryptocurrency. A player who spends several hours a day on the game can earn fifty to seventy dollars in a day in SLP.
Because the nature of the game play is time intensive, it is very attractive to users in developing countries where the average daily income is quite a bit less than the amount that can be earned through game play. But the cost of joining the game is sufficiently prohibitive that very few of these same players are able to afford the buy-in. This has given rise to a sponsorship situation where investors in wealthy countries sponsor a player in a developing country in exchange for a percentage of the user’s daily earnings. This proved fruitful initially until it became obvious that the unlimited supply of SLP devalued the cryptocurrency and changes were required to make it more difficult to earn.
Another challenge of Axie Infinity arose when, a few months ago, North Korean hackers stole over 600 million dollars worth of players’ SLP from the game. Not only was this a blow to the game’s reputation and the incomes of the users who struggled to make ends meet on their income from the game, but it also demonstrated the larger issue of lax cybersecurity in the blockchain (an issue I will address at a later date.)
All of this gives rise to a large number of potential disputes in relation to the game play and all if the ecosystem of relationships that arise therefrom.
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