In a notable development for web3 gaming, Sky Mavis, the studio behind the play-to-earn hit Axie Infinity, has finally revealed its long-awaited 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.

Axie's Part Evolution feature is now LIVE, allowing players to evolve their Axies through App.Axie using Atia’s Flame. This new feature brings significant changes to the game's mechanics, requiring players to understand the materials, Garuda Shrine Shop, and Consumables. Additionally, the Axie level cap has been increased to 60, permitting players to evolve all six parts progressively.

To begin the Axie evolution process, players should be aware of specific requirements, including materials, AXS fees, and ascension levels. After ensuring the Axie meets these criteria, players can navigate to Atia’s Flame on App.Axie and initiate the evolution process. This involves selecting the Axie, confirming readiness, and providing the necessary materials and AXS.

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.

The evolution process incurs costs in materials, AXS, and time. For instance, evolving an Axie's first part requires 100 materials, while evolving all six parts necessitates 1013 materials. Similarly, the AXS fee varies based on the part being evolved. Players should note that evolution typically takes 96 hours unless they opt for an instant evolution by doubling the materials.

The introduction of Radiant Spirit Shells adds another dimension to the evolution process. These tokens are essential for evolving specific Axie parts and can be acquired through various means, such as ascending Mystic Axies, Garuda Shrine Shop rewards, and marketplace purchases.

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 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.”

Furthermore, Axie has launched the Race to Evolution Challenge, offering rewards to the first 10,000 Axies evolved. Participants have the opportunity to win Origin Axies and Radiant Spirit Shells, with an additional prize for the first Axie to evolve all six parts.

Sky Mavis also officially opened its debut merch store. The focus of the launch was 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. 

In summary, Axie's part evolution update introduces a new gameplay mechanic that requires players to understand materials, costs, and rewards. With the increased level cap and the introduction of Radiant Spirit Shells, players have more opportunities for progression and engagement within the Axie universe.