Axs is definitely used in game play. You need axs to breed Axies, believe it starts at 4 for first time breeding and goes up (so minimum for first breed is around $160usd cost).
The general idea behind Axie is to try and be a self regulating economy. You need to burn both SLP and AXS to breed whilst generating SLP daily through quests. Not sure of the generation of AXS though.
Axs is definitely used in game play. You need axs to breed...
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