Axie Infinity is the NFT based game that is conquering Southeast Asia. With growing membership especially in the Philippines, the cryptocurrency revenue-generating game has now aroused the interest of merchants in the country, who have already started accepting payments in the native token “Smooth Love Potion” (SLP).
As determined by the CoinDesk, there are a growing number of Philippine establishments and businesses that are accepting digital currency. It is one of Axie Infinity’s native tokens, the SLP, acquired through in-game activities.
The Nextperience Group is one of those companies that have joined the trend. Focused on organizing events and “co-baking” gastronomic spaces, she told the CoinDesk which, since mid-July, has handled around US$ 3,000 in SLP.
This token is the main revenue generator within the game. A player acquires it by winning battles, performing quests and other activities. Having a value like any cryptocurrency, it can be exchanged for fiat money or other digital currencies across a variety of platforms. SLP can also be used to create new Axies, the little monsters that are also NFTs and can be traded.
With the game’s growing popularity in Southeast Asia, the volume of SLP deals has taken off in recent months. Cryptocurrency brokerages and platforms in the region are already allowing users to exchange the token for the local currency.
“Issuing and acquiring the SLP has become an everyday task for many people,” Nextperience told CoinDesk. For the company, it is in the interest of the Filipino population that this digital currency also has a daily use, which can be spent in commercial establishments.
Merchants test payment models
At Nextperience merchants, payments in SLP are made based on an amount referenced in the quote from Binance, the largest cryptocurrency broker in the world. Thus, when a customer wants to carry out a transaction with the Axie Infinity token, the price in SLP is calculated based on its fiat currency equivalence at the time of purchase. Payment is then made with a transfer between digital wallets.
However, there are also traders who prefer to establish fixed prices in SLP based on the average asset value in the month rather than immediately converting the token to the national currency. In this model, merchants are betting that their earnings will be greater in the long run, as the cryptocurrency appreciates.
According to CoinDesk, customers typically pay with SLP through the Ronin wallet, which operates on a side chain of the Ethereum blockchain, allowing users to perform up to 100 free transactions every day. “There are more Filipinos with a Ronin wallet than Filipinos with a credit card,” said a spokesperson for Nextperience.
Philippine government wants to tax earnings at Axie Infinity
Axie Infinity is one of the most popular blockchain games in the world. Globally, it already has nearly half a million daily active users, with over 60% of them located in the Philippines. However, the income generated has already caught the attention of the country’s tax authorities, who are looking for a way to tax the players’ earnings.
Players who sell Axies and earn real-world money must pay proper income tax on such transactions, according to the Philippines Department of Finance (DOF). The country’s central bank and the Securities and Exchange Commission are also discussing whether Axie Infinity tokens are assets or securities, and then define an appropriate taxation model.
With information: CoinDesk