Ronin Network Review: Sidechain for Web3 Games Developed by Sky Mavis

Ronin Network is a game-changing layer-two scaling solution built on Ethereum. It offers lightning-fast transactions and lower fees, revolutionizing DeFi. With a focus on scalability and user experience, Ronin Network is poised to redefine the future of blockchain gaming and GameFi.

What is Ronin Network?

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Ronin Network is a sidechain connected to Ethereum, designed to facilitate fast transactions with minimal fees for the game Axie Infinity. Moreover, Ronin Network aspires to serve as a blockchain platform for developers to contribute to shaping the future Web3 gaming ecosystem.

The team behind this project is none other than Sky Mavis – the creator of the Axie Infinity game (one of the most successful Play To Earn games to date) in February 2021 with the aim of revolutionizing the gaming experience on the blockchain. Ronin addresses key issues such as high gas fees of Ethereum and slow transaction speed.

Currently, the Ronin Network utilizes the Delegated Proof of Stake (DPoS) consensus mechanism, a fusion of Proof of Stake (PoS) and Proof of Authority (PoA), to choose validators based on their reputation as trustworthy stakers. This approach is a foundation for the Ronin Network to introduce functionalities like running nodes, staking, and platform governance using the RON token.

Highlights of Ronin Network

Ronin Network, developed by Sky Mavis, is a pioneering blockchain project that supports decentralized gaming applications and non-fungible tokens (NFT) used in games like Axie Infinity. Here are some key features of the Ronin Network:

1. Scalability: Designed to enhance blockchain scalability, Ronin Network ensures swift and efficient transaction processing.
2. Affordable Transaction Fees: Ronin Network minimizes transaction fees, offering a more cost-effective experience than other blockchain platforms.
3. Interoperability: Built to work compatibly with diverse standards and protocols, Ronin Network facilitates easy integration within the broad blockchain ecosystem.
4. NFT Gaming Support: With the rise of Axie Infinity, a blockchain game utilizing NFT technology, Ronin Network provides an optimized sidechain for creating, trading, and managing decentralized tokens, enhancing the gaming experience.
5. Community-driven Development: Ronin Network fosters a vibrant community of developers, users, and blockchain enthusiasts, facilitating the project’s sustainable and continuous growth.

These highlights are just the tip of the iceberg for Ronin Network, anticipating further improvements and features to enhance user experience and bolster the blockchain ecosystem.

How Does it Work?

Initially, the Ronin Network utilized the Proof of Authority (PoA) consensus protocol, with fewer than 25 validators typically. Top partners across various sectors, such as Animoca Brands and Binance, were granted validator rights by Sky Mavis to secure the project. These validators had the task of creating and verifying blocks, as well as processing the transfer and storage of assets between Ronin and Ethereum, including ERC20 tokens and NFTs.

However, this led to issues due to the platform’s centralization, lack of validator diversity, and limited benefits for RON holders. Recently, Ronin announced a shift from PoA to Delegated Proof of Stake (DPoS), a reputation-based validator selection mechanism rather than wealth or identity. This change allows even small-scale investors to run nodes, stake RON, and earn rewards.

Ronin Ecosystem

The Ronin Ecosystem plays a crucial role in the construction and development of the Ronin Network blockchain. Here are some notable aspects of the Ronin Ecosystem:

• GameFi: Axie Infinity is the flagship game on the Ronin Network. Other announced games to be built on this sidechain include Pixels, Apeiron, and CyberKongz.
• Mavis Hub: This is the account manager for the Axie Infinity game on the Ronin Network.
• Marketplace: This is the Non-Fungible Token (NFT) trading market within Axie Infinity.
• Katana DEX: This is a decentralized exchange (DEX) on the Ronin Network, supporting the trading of tokens like USDC, WETH, SLP, and AXS.
• Ronin Wallet: This wallet stores assets on the Ronin Network.
• Ronin Explorer: This tool, similar to Etherscan, allows users to search and track transactions on the Ronin Network.
• Ron Staking: This feature allows users to stake RON tokens to earn rewards and help secure the network.
• Ronin Bridge: This bridge allows asset transfers between the Ronin Network and Ethereum.
• Ramp: This tool enables users to purchase cryptocurrency on the Ronin Network with fiat money.
• MetaLend: This is a lending project on the Ronin Network that allows players to use their NFTs as collateral to borrow WETH.
• Scatter: This feature allows tokens to be sent to multiple wallet addresses on the Ronin Network.

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Tokenomics and Use Case

Token metrics

• Token Name: Ronin Network
• Ticker: RON
• Blockchain: Ronin Network
• Token Type: Utility, Governance
• Total Supply: 1.000.000.000 

Token allocation

• Rewards: 25%
• Community incentives: 30%
• Sky Mavis: 30%
• Ecosystem fund: 15%

Use Case

The RON token is utilized in the following scenarios:

• It serves as the transaction fee within the Ronin Network.
• It is used to secure Axie Infinity and future games.
• RON holders can participate in project governance through DAO.
• It is used for running nodes, farming, staking, and platform administration.

Where to Buy Ronin Network?

Currently, investors can trade the RON token at the following platforms:

• Centralized exchanges (CEX): Binance, OKX, Gate.io, Bitget, MEXC, and BingX, among others.
• Decentralized exchanges (DEX): Katana.

Team and Investors 

Team

The Ronin Network was established and is being developed by the Sky Mavis team, which includes the following notable members:

• Trung Nguyen: He serves as the CEO of Sky Mavis.
• Aleksander Leonard Larsen: He is the COO of Sky Mavis.
• Andy Ho: He holds the position of CTO at Sky Mavis.

Investor and partners

Sky Mavis, the parent company of Ronin, has raised funds through four rounds from 2019 to 2022. The latest funding round, held on April 6, 2022, brought the total capital raised to $311 million USD, valuing Sky Mavis at $4.5 billion USD.

Ronin Network has received approximately $150 million USD in investments from prominent crypto market players such as a16z, Binance Labs, and Animoca Brands.

By the end of 2022, Sky Mavis hosted AxieCon, announcing their new partnership with Google and inviting game studios, referred to as builders, to contribute to product development. Presently, there are over 250 game studios on Sky Mavis’s potential partner list.

Additionally, to invest in and support projects within the Ronin ecosystem, Sky Mavis has allocated $42 million from the Ecosystem Fund present in their tokenomics, along with an extra $10 million from Sky Mavis’s own fund. Ronin Network boasts partnerships with notable entities in the crypto market like Binance, Nansen, Coingecko, and OKX.

Conclusion

Significant investment funds never hesitate to invest in gaming to develop high-quality games. From this, Sky Mavis aspires to evolve the Ronin Network into a dedicated blockchain to cultivate a future gaming ecosystem. However, time is needed to verify whether quality games will be developed on the Ronin Network.

CoinCu rates this as a top-tier project for infrastructure in the gaming sector. Notably, Pixels recently overtook Axie Infinity to become the number one game, further demonstrating the potential of the Ronin Network in the world of Web3 gaming.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.