In a notable development, Sky Mavis, the team behind the play-to-earn hit Axie Infinity, has announced a substantial update introducing a "Stage 2" evolution system for Axie NFTs. This latest update enables the evolution of more than 250 distinct Axie "parts," providing players with opportunities to enhance both battle capabilities and visual aesthetics. Sky Mavis co-founder, Jeff 'Jihoz' Zirlin, shared insights into this evolutionary feature, emphasizing the team's vision of evolving Axies into dynamic digital collectibles. “We’re turning Axies into digital collectibles that evolve as you play with them. This has been something that’s been at the core of our vision for over five years now.” 

Since its 2018 launch, Axie Infinity has garnered millions of players participating in strategic battles using NFT-based monster cards. Despite facing a significant $622 million hack, the game has not only recovered but also thrived within the broader Ronin blockchain ecosystem. Drawing parallels to the CryptoKitties NFT collection, Jeff 'Jihoz' Zirlin highlighted the immersive nature of Axie NFTs, describing them as animated entities with distinct characteristics.

In conjunction with the evolution update, the Axie team plans to release a 20-page comic and an animated video exploring the lore behind Axie upgrades. The narrative follows characters Ema and Bing on a quest to find "spirit shells" in the Axie world of Lunacia, ultimately leading to the discovery of the Atia Temple, the sacred ground for Axie evolution. However, evolution comes at a cost. NFT owners keen on upgrading their Axies will need crafting materials or may have to "burn" other Axies, essentially removing them from the blockchain to empower their chosen Axie. The evolution process begins at level 10 and requires players to be "ascended," with each part taking 36 hours to evolve. An option to expedite the process by paying an extra 200% in materials cost is available for those unwilling to wait.

Jeff 'Jihoz' Zirlin emphasized the practicality of dynamic and evolving NFTs, allowing developers to introduce new content without overwhelming the market with new collections. With over 11.9 million Axie NFTs across 1.9 million wallets, evolving NFTs present a sustainable way to expand content without saturating the existing supply. The evolution update extends beyond Axie Infinity, linking all Axie games through a shared system of experience points, crafting materials, and progression. This move toward vertical progression represents a significant innovation in the NFT space, according to Jeff 'Jihoz' Zirlin. “We've seen some, let's say, disasters over the last year where NFT projects would need funding, or their communities wanted new content, so they would mint an entirely new collection. And that would basically crash the market for their NFTs. Dynamic NFTs and evolving NFTs allow developers to introduce new content without expanding the supply of their initial collections.”

Sky Mavis continues efforts to expand the Axie brand, attracting game developers to the Ronin blockchain. Recent developments, including the migration of the Pixels browser game to Ronin, have sparked significant interest. In November 2023, according to data from Nansen, Ronin hosted over 150,000 Unique Active Wallets (UAWs), with on-chain transactions surpassing 500,000. Simultaneously, the native token RON is on the rise - experiencing a 13% increase, reaching a price of approximately $0.68, according to CoinGecko data. This adds to a moderate 37% rise over the course of a week and a steady 59% increase in a period of 30 days, indicating Ronin's growing influence within the web3 gaming ecosystem. Furthermore, the loosening of commercial use restrictions on certain Axie NFTs allows rare Axie owners to launch their projects, leveraging their NFT intellectual property.

Sky Mavis also officially opened its debut merch store. The focus of the launch being an exclusive >Code: Axie_ Collection, paying tribute to the game's 2018 inception when the first Axie NFTs were presented in raw code. The >Code: Axie_ Collection is a time-limited release, including a hoodie, t-shirt, and cap, reflecting the essence of Axie Infinity's origins. Beyond this, the merch store offers a range of products, from figurines to plushies and apparel. Mystic Axie NFT holders will gain unique privileges, including access to token-gated figurines in physical and digital formats and updated licensing guidelines. As players anticipate the evolution update, the evolving NFTs promise to reshape play-to-earn gaming, offering a dynamic and interconnected experience for Axie enthusiasts.