Analysing Economic Gain Dynamics in a P2E Metaverse: The Case of Axie Infinity

The metaverse was recently proposed as a new way for people to socialise and interact with each other and digital objects in a world malleable at users' will. Blockchain plays a big role in the current metaverse proposals because it enables keeping track of digital assets' property via NFTs. Thanks to the blockchain, metaverses like Axie Infinity, also implement a rewarding system to keep players engaged in the platform following a Play 2 Earn model. However, users interested in the economic gain dynamics of such platforms may be encouraged to find alternative ways to earn by playing the game. In this paper, we discuss the Breed 2 Earn strategy used by players in the Axie Infinity metaverse to generate profit in the game. We identify two breeding methods to create new axies (in-game creatures used to access rewards) and study their efficacy using a 2-year dataset. Our analyses confirm that the two strategies are widely used, and by exploiting the bull run market they generate profits for breeders.