What is Ronin Network (RON)?

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What is Ronin Network (RON)?

Ronin Network is a blockchain researched and developed by Sky Mavis, specifically designed to support the development of NFT Gaming.

https://roninchain.com/

Relationship between Axies & Ronin

Axie Infinity is a strategy game similar to Pokemon Go. By the end of 2020, Axie Infinity had become one of the leading blockchain games, gaining popularity in Southeast Asian countries such as the Philippines, Vietnam, Thailand, and others.

However, as Ethereum’s congestion issues worsened, and gas fees skyrocketed, Axie players decreased significantly. The team needed a solution to address these challenges. The Loom network was initially considered, but due to customization limitations, it couldn’t meet the needs of Axie Infinity’s massive user base.

This led to the creation of Ronin to enhance the gaming experience for Axie Infinity players. However, Ronin goes beyond improving user experience, aiming to develop all aspects of NFT Gaming, building an ecosystem with various gaming projects.

What is the operational mechanism of Ronin Network?

Ronin initially employed the Proof of Authority (PoA) consensus mechanism, a reputation-based consensus algorithm, which can be considered a customized version of PoS (Proof of Stake).

However, while the PoA consensus mechanism requires less energy and allows for faster transaction speeds, it tends to have lower decentralization. To enhance decentralization, Ronin integrated Delegated Proof of Stake (DPoS) into the validator selection process, enabling anyone holding a sufficient amount of RON Tokens to become a validator in the network.

Through the DPoS mechanism, others can delegate RON tokens to selected validators. Ronin validators are then responsible for creating, validating transactions, and safeguarding the network. The network also implements slashing rules to penalize validators for malicious actions.

As of the time of writing, Ronin has achieved:

$4.1 billion USD in NFT transaction volume
426 million transactions on the network
11.36 million active wallet addresses

Key Highlights of Ronin Network

Some notable features of the Ronin Network include:

Ronin enables near-instant transactions, providing fast and almost instantaneous transaction processing.
Transaction fees on Ronin are relatively low compared to Ethereum, where fees can range from a few dollars to tens of dollars per transaction.
Tokens within Axie Infinity (ERC20, NFT) can be freely transferred between Ethereum and Ronin using the Ronin Bridge.
Ronin is custom-built for Axie Infinity, addressing the complex customization requirements of Axie and significantly enhancing the gaming experience for Axies users.

The business model of Ronin utilizes a multi-sided platform, a model employed by leading blockchain and non-blockchain projects such as PayPal, Alibaba, Facebook, and Ethereum.

A multi-sided platform is a service or product that connects two or more participating groups, acting as an intermediary. Its value lies in facilitating easier discovery and interaction among participating groups.

However, Ronin experienced a significant security breach in March 2022, resulting in a theft of over 600 million USD. This incident is considered one of the largest crypto hacks recorded. The hacker stole 5 out of 9 private keys of the validators, causing substantial damage to the network.

The incident caused a shock in the community, but fortunately, various organizations in the market came forward to assist the Sky Mavis team in recovering from the aftermath. Immediately, the team raised 150 million USD from investors to compensate victims of the nearly 625 million USD hack.

Following the incident, the Ronin team conducted three audits for the Ronin Bridge by Certik and Verichains. Additionally, Ronin actively collaborated and added more validators to the network, increasing the total number of validators from 9 to the current 22 to enhance decentralization and avoid repeating mistakes.

What is RON Token?

RON Token Key Metrics

Token Name: RON token
Ticker: RON
Blockchain: Ronin Network
Token Contract: 0xe514d9deb7966c8be0ca922de8a064264ea6bcd4
Token Type: Utility & Governance
Max Supply: 1,000,000,000 RON
Circulating Supply: 214,829,446 RON (as of May 2023)

RON Token Use Cases

The RON token serves the following roles within the Ronin Network ecosystem:

Transaction fees within the network.
Staking for network operation and security.
Governance of the Ronin DAO.
Rewards for user-engagement activities on the chain.

RON Token Allocation

The distribution of RON is allocated as follows:

Staking Rewards: 25%
Incentives: 30%
Sky Mavis: 30%
Ecosystem Fund: 15%

RON Token Release Schedule

The RON Token will be unlocked over a period of 9 years, starting with the initial release on January 27, 2022, and unlocking monthly thereafter (a total of 108 months). The specific schedule is illustrated in the following chart:

Roadmap & Updates

The development journey of Ronin Network is summarized as follows:

Year 2020:

Axie identified the need for a long-term solution to facilitate quick, cost-effective, and seamless participation in the Axie game. Consequently, they initiated the development of an EVM sidechain named Ronin to implement this.

Year 2021:

Ronin’s official mainnet launch.
Sky Mavis, the company behind Ronin & Axies, raised $7.5 million in a Series A round.
Sky Mavis secured $125 million in a Series B round, Ronin reached a $5 billion asset value on-chain, and Ronin wallet exceeded 2 million downloads.
Introduction of RON token, launch of Ronin’s native DEX named Katana, and release of the mobile version of the Ronin wallet.

Year 2022:

Ronin Bridge was hacked, resulting in over $650 million in damages.
Addition of 5 validators to Ronin after the hack.
Ronin Bridge reopened after undergoing three rounds of audits.
Addition of 3 validators to Ronin.
Google Cloud became a validator and established a partnership with Ronin.
Sky Mavis collaborated with Studio Partners, including Google Cloud, in the AxieCon program.

Year 2023:

Introduction of Mavis Hub 2, a home featuring games developed on Ronin.
Launch of Metalend, Ronin’s first lending project.
Completion of the transition from the PoA mechanism to DPoS and enabling RON staking.

Project Team

Ronin is a chain developed by Sky Mavis, a Game-focused company founded in early 2018 and the owner of the well-known crypto game, Axie Infinity.

Investors and Funding Rounds

Sky Mavis, the parent company of Ronin, has undergone a total of 4 funding rounds spanning from 2019 to 2022.

The latest funding round on April 6, 2022, raised the total funding amount to $311 million, with the current valuation of Sky Mavis standing at $4.5 billion.

Sky Mavis boasts a total of 29 investors, ranging from major funds like a16z, Paradigm, Amonica Brands, to notable entities such as Binance.

Partnerships

In late 2022, Sky Mavis organized AxieCon to announce its new partners, including Google, and invited game studios to participate in building products. Currently, there are over 250 game studios in the potential partner list of Sky Mavis.

Moreover, to invest and support projects within the Ronin Network ecosystem, Sky Mavis allocated $42 million from the Ecosystem Fund in the tokenomics and added an additional $10 million from Sky Mavis’s own fund.

Conclusion

The article “What is Ronin Network (RON)? Gaming supporting Axie Infinity” has provided readers with comprehensive information about the Ronin Network project. While it holds potential in the gaming industry, the profitability for investors remains uncertain. Our article aims to offer information, and it is not investment advice!