• Apple imposed a 30% tax on Web3 apps in 2022, hindering NFT adoption.
• Axie Infinity found a workaround to launch its game on the App Store without paying the tax.
• The Lite version of the game is free-to-play and uses externally purchased NFTs from the Ronin sidechain.

Apple Imposes Tax on Web3 Apps

In 2022, Apple implemented a 30% tax for all in-app purchases including Non-Fungible Token (NFT) sales. This policy has been met with strong criticism from figures within the Web3 community such as Polygon Studios’ CEO Ryan Wyatt who described it as “criminal”. As a result, this has hindered NFT adoption among Apple users.

Axie Infinity’s Listing Loophole

Sky Mavis, developers of blockchain game Axie Infinity, have released its card-based game Axie Infinity: Origins to the App Store in countries where it is popular such as Argentina, Colombia, Peru, Mexico, Venezuela, Indonesia and Malaysia. To bypass both the 30% tax and Apple’s listing process, they released a Lite version without any NFT trading which is free-to-play so users can join without any upfront cost. And since this game runs on Sky Mavis‘ Ethereum based Ronin sidechain players can transfer their existing Axies into the game making it one of the first times that externally purchased NFTs are usable on App Store.

What Else Can We Expect?

Axie Infinity Co-founder and COO Aleksander Leonard Larsen shared that they have been working with Apple for over two years and that this version of the game is still under development with more features to be announced in future updates.

How Will This Impact Adoption?

The release of Axie Infinity’s card based game to App Store could help improve user experience by providing an easier transition into blockchain games for new users while also allowing existing players to continue using their existing assets on both platforms without having to pay extra taxes or fees imposed by Apple– thus increasing overall adoption of blockchain games and Non Fungible Tokens (NFTs).

Conclusion

Axie Infinity launching its game on Apple App Store presents an opportunity to increase adoption of both blockchain games and Non Fungible Tokens (NFTs). With its workaround strategy for listing its Lite version of the game on App Store without paying taxes or going through rigorous review processes may open up opportunities for other projects looking into releasing their apps onto iOS platform as well– potentially leading to wider mainstream adoption for these technologies in general.