Decentralization and Community Evolution in Blockchain Games: The Role of Governance Tokens

This study explores the role of governance tokens in shaping player communities in blockchain games, focusing on Axie Infinity. Blockchain games introduced governance tokens to empower players with decision-making capabilities, enhancing decentralization. However, their impact on community dynamics remains insufficiently understood. This research adopts a data-driven approach, collecting AXS transaction data, constructing monthly token transfer networks, and analyzing community evolution using a detection algorithm. The results reveal an increasing trend towards decentralization over time. While larger communities generally have longer lifespans, surpassing a certain size threshold can accelerate their decline due to decentralization. Maintaining stability within community membership is essential for longevity, highlighting the roles played by experienced players and established communities in governance.