Ronin (RON)
Ronin, an EVM-compatible blockchain that focuses on creating web3 games with player-owned economies and is backed by some big names, made headlines for losing money in a major bridge exploit.
It was only a matter of time before we needed to take a look at Ronin, which is not only a gaming blockchain, but also a term dating back to feudal Japan, which refers to a wandering samurai who has no master…
Ronin is a blockchain platform that supports the Ethereum Virtual Machine (EVM), in order to make it a prime choice for developers that are looking to build gaming applications in this new gaming era. By using the Ronin chain, you can eliminate the common bloat found in other permissionless blockchains. This is done by focusing on curating high-quality apps and lowering spam in order to provide high uptime for games.
The project is spearheaded by Sky Mavis, which are also the creators of the Web3 gaming catalyst Axie Infinity. In the glory days (2021), Ronin processed 15% of all NFT trading volume and became the repository for all Axie Infinity assets, which included Axies, Land, SLP, and AXS. Interested in Axie Infinity? Check out our Axie Infinity Tutorial.
This review of Ronin (RON) was created for informational purposes. This article is not intended for promotion.
As a blockchain Ronin uses its own technologies to create a decentralized, secure, and scalable infrastructure. We take a look at the Ronin Consensus, including their Delegated Proof of Stake, as well as the Ronin ZKEVM and Ronin Bridge, that was hacked in the past.
Ronin’s journey began with a Proof of Authority (PoA) mechanism but it later (April 2023) transitioned to a Delegated Proof of Stake (DPoS).
This means a few selected validators (or any RON token holder with sufficient stake), can be trusted for their expertise and reputation, will maintain the Ronin network and verify the transactions happening. This also means that:
Ronin also has implemented Zero-knowledge (ZK) rollups and these cryptographic techniques validate transactions quickly and securely and even are increasing Ronin’s:
Ronin also utilizes its own bridge, in order to bridge assets from ZKEVMs or mainnet to Ronin. With the Ronin-Ethereum Bridge that ensures ‘secure’ cross-chain transactions.
However, there were some hiccups along the way, as on August 6th 2024, a critical misconfiguration in a bridge upgrade proposal caused the bridge to misinterpret the voting weight threshold required for withdrawals.
This was followed by a significant security breach where 173,600 ETH and 25.5M USDC were stolen from the Ronin Bridge due to a socially engineered attack.
Whitehat hackers notified the Ronin team of the issue, and the bridge was paused to prevent further exploitation. In a post-mortem, all funds were recovered, and the whitehats were awarded a $500K bounty for their efforts. All good.
Ronin hosts a diverse range of game genres that saturate different player preferences and gaming styles. When we look at the Ronin gaming portfolio, we see the following:
Pixels Online, which is a farming simulation MMORPG reminiscent of Stardew Valley. The game saw a daily active users peak above 1.3 million and even received a feature in the prestigious New York Times.
Lumiterra, which is an open-world survival and crafting game, generated over $1.65 million in NFT trading volume across its closed beta tests and is also being run on Ronin.
Runiverse, a fantasy MMORPG, did an impressive 1.4 million hours played and clinched the #1 RPG spot on DappRadar after just a two-week open beta period.
Ronin has also a mobile game, RPG Fableborne, which took home the coveted Best Mobile Game award at the GAM3 Awards.
Tatsumeeko Lumina Fates, also run on Ronin, is a free-to-play life simulation RPG that’s integrated with a Telegram spin-off called Lumina Hunt.
Ragnarok, a legendary gaming universe and transmedia IP, made its Ronin debut in 2024 and has two games that are set in the Ragnarok universe: Monster World and Landverse.
No discussion of Ronin’s success and offering would be complete without mentioning Axie Infinity. Which was more than a legendary pump, but pioneered the play-to-earn concept by onboarding millions of users to the world of Web3 gaming.
We can say that Axie Infinity is the reference for many web3 gaming fanatics and is something many want to mimic in terms of adoption and relevance.
RON, the native utility token of the Ronin blockchain, was launched in January 2022 without private sales. The token serves multiple functions including transaction fees, staking, and governance.
The distribution of RON tokens is strategically planned to support various network functions:
As of now, approximately 21% of RON tokens are in circulation. Over the next year, an additional 3% is expected to enter circulation through staking rewards, and 1.1% through the Katana Liquidity Mining program.
The Ronin network offers RON staking rewards to secure its network. The upcoming April 27th unlock will release about 11.4 million RON for staking rewards. These tokens will gradually circulate as they are earned by the stakers.
The Katana liquidity mining program rewards those providing liquidity on the Katana DEX and is done quarterly to balance the liquidity needs against inflation risks.
Sky Mavis holds 30% of the RON token supply, used for various purposes including employee incentives and shareholder agreements.
Of Sky Mavis’s allocation, 7.65% belongs to equity shareholders, with 2.68% already unlocked as of April 2023. The remaining allocation will be unlocked linearly until July 2026.
Approximately 6 million RON will go to the Ecosystem Fund in order to support initiatives that propel the Ronin network’s growth and are outside the regular operational funding.
Another fund belonging to Ronin is the Ronin Treasury that supports the ecosystem’s growth by funding public goods and incentivizing contributions from dApps.
Managed by the Sky Mavis core team, it hands out funds to the growth of the Ronin network community or anyone that adds clear value to the broader Ronin network ecosystem.
That being said, the maximum total supply of RON is set at 1,000,000,000 tokens, with a planned unlock over 108 months (9 years). The unlock schedule is structured to release tokens at quarterly intervals, although the actual implementation sees tokens unlocked on a continuous basis rather than at specific dates.
To manage, trade, and receive RON tokens, you will need a Ronin Wallet. Follow these steps to set up your wallet:
RON staking can be done simply, and by staking RON, you will help secure the network and earn rewards for your contribution.
Participating in RON staking is straightforward. You can delegate your tokens to any of the 22 validators based on criteria such as their contributions to the community, uptime, and commission rates.
When you delegate, you are a ‘delegator’ – that is anyone who delegates their RON stake to a validator to participate in the network indirectly. By delegating their stake, delegators earn rewards without needing the technical expertise or resources required to run a validator node themselves.
Ronin allocates a substantial reward pool to incentivize validators. Here’s a breakdown of the rewards structure:
For example, a validator with a 10% commission rate and a total stake of 7,000,000 RON would earn approximately 617 RON per day, estimating up to 225K RON in rewards in the first year. The minimum stake required to become a validator is 250,000 RON.
With the many things Ronin has going, including the implementation of zkEVM that paves new crosschain possibilities, a very big game/chains portfolio like Pixels, Apeiron, and even a dedicated Ragnarok chain, more developers will be drawn to create unique, ownership-driven gaming experiences. The result? Perhaps an explosion in the number of games and a surge in competition within the Ronin ecosystem.
If we look at the numbers, Ronin Network’s popularity skyrocketed in 2024, with monthly active addresses hitting 2.9 million and an increased NFT volume, reaching $71 million USD.
As the 4th most-used blockchain in 2024, boasting $4.3 billion in all-time NFT volume, 1.6 million monthly active addresses, and 17 million Ronin Wallet downloads, Ronin has established itself as a heavy hitter in the Web3 gaming space.
In 2024 alone, 17 new games became available on the platform, while the total number of NFT collections grew by a staggering 500% over the past year. We look forward to what 2025 will bring for Ronin.
In conclusion, Ronin has solidified its position as a formidable player in the Web3 gaming space. Despite the setbacks faced in the past, such as the significant bridge exploit, it has a diverse gaming portfolio, which includes titles like Pixels Online, Lumiterra, Runiverse, and the legendary Axie Infinity.
Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.
Start learning about crypto at YourCryptoLibrary
