If you check the game, its almost the same with axie with using two coins for breeding. The only difference is pegaxy has massive burning features that keeps them on the balance of minting and burning.
Never heard of it is this the website of that NFT game?
https://pegaxy.io/ about the Axie yes the supply of the SLP is really increasing and I'm not sure what other things they can do with the SLP about the Pegaxy and its burning and minting feature I think this could be an advantage against the Axie since they can burn the supply of their coins. I also see that they are built in Polygoin Chain.