Ronin was launched by Sky Mavis. It has proven to scale a single game to facilitate millions of daily active users. It has processed over $4 Billion in NFT volumes. The blockchain facilitates seamless instant transactions with negligible fees which makes it the first choice for Web3 games.
It has performed extraordinarily in its first nine months with 250,000 unique daily active addresses, $5 Billion in TVL, more than 2 Million wallet downloads, and 15% of all NFT transactions on the market.
How did the Word Ronin emerge?
The word Ronin emerged from Feudal Japan, as it was used for Samurai who either lost in battle, or witnessed the untimely death of their Lord, or due to their misdeeds because of which they were removed from their noble sponsorship. The subject of Ronin is an integral part of Japanese films set in Feudal Japan. .
A large number of these samurai left their lords and became ronin. This highlights the revolutionary mood of the country at the time.
Creators of Ronin
Ronin was created by Sky Mavis. It is the team behind Axie Infinity and it is backed by some investors like Animoca Brands, Paradigm, Libertus, Mark Cuban, etc. Jeffrey Zirlin and Alexander Leonard Larsen are the cofounders of this blockchain.
How is Ronin Unique?
Hyper-optimized for gaming: Ronin accommodates millions of daily users. In 2021, the blockchain processed 15% of all NFT trading volume. This scalable blockchain is second only to Ethereum for NFT sales by volume. It is hyper-optimized for gaming. It ensures that there is minimal spam and high uptime for games.
Use of DPos: This blockchain aims to gradually increase the decentralization of Sky Mavis’ products. At the time of its launch, Ronin used Proof-of-Authority (PoA) as its consensus mechanism. In this system, validators approved the transactions. This mechanism is criticized for being less decentralized compared to Proof-of-Stake (PoS) and Proof-of-Work (PoW).
To make the blockchain more decentralized, the team integrated Delegated-Proof-of-Stake (DPoS) which includes features of delegation and validator selection. The token holders delegate their stake to select the validators. The transaction, along with new blocks and earning rewards for work are verified by these validators.
Environmentally friendly: It is comparatively environmentally friendly. One Bitcoin transaction uses as much energy as 695,505,316.31 Ronin transactions.
Backed by Sky Mavis: Ronin is backed by Sky Mavis, and their experience in building and scaling Axie Infinity has given them unique insights into the development of the product, community building, and market. They also provide advisory support.
Ronin is secure: Sky Mavis has faced many scaling roadblocks and security threats. It faced the Ronin Validator Breach in March 2022 where 173,600 ETH and 25.5 Million USDC were drained from the Ronin Bridge. It was an attack by hackers and not caused by a technical flaw. Subsequently, the team implemented robust security measures to prevent future attacks. The codes underwent thorough review, incorporating insights from security experts into the entire architecture.
Who can Become a Delegator and How is Staking Conducted on Ronin?
The token holders who do not have enough RON to meet the minimum requirements can earn the staking reward and take part in the network as delegators. For this, the delegator has to contribute their RON stake to any validator.
The staking token is called RON; those token holders who have a minimum of 250,000 RON can become validators. Staking takes place at the beginning of the day. The validators are selected daily based on the highest amount they staked.
Validators can un-stake and renounce their role after a waiting period of a week. Delegates can un-stake in three days since they last staked into this validator.
Ronin (RON) Market Analysis and Tokenization
At press time, market capitalization stood at $454,629,903, along with a circulating supply of 276,637,252 RON. The fully diluted market cap is $1,643,213,307.
The total supply of RON is capped at 1 Billion. Launched on the native Katana DEX, no private sales have been conducted, and distribution occurs through an incentivized liquidity program. Quarterly, the issuance will decrease. The token will be distributed as follows:
- 25% rewards allocated for staking and bridge incentives.
- 30% allocated for a community that includes liquidity mining, content creation, grants, and reward programs.
- 30% for the team (Sky Mavis).
- 15% for ecosystem fund that comprises grants, investments, and hackathons bringing applications, game-changing content, and tooling to Ronin.
There are two sources of rewards for validators, the transaction fees and 90% of the staking reward. When a block is generated by a validator, they earn transaction fees in that block along with some fixed amount of the staking reward.
However, the reward is not sent directly to the validator but is distributed and stored on a smart contract. At the end of each day, the smart contract allocates the reward to eligible validators and their delegators. Hence, the validators and their delegators can claim the allocated reward at the end of the day. RON is available on DEX, OKX, and Katana.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.