By James Davis
As crypto gaming continues to witness adoption, several blockchains designed to support crypto-powered games are being launched. These chains are created to offer cheaper and faster transactions than well-known networks such as Bitcoin and Ethereum.
While most gaming blockchains are public, some are private, meaning game developers must seek approval from the network creators to launch their gaming projects. One of the private gaming blockchains is Ronin. However, its founder plans to open it up later this year to allow more game developers to build projects.
Here is everything you need to know about Ronin.
Defining Ronin
Designed to process transactions quickly and cheaply, Ronin is a gaming-focused Ethereum sidechain. Being an Ethereum Virtual Machine compatible network, Ronin allows games built on Ethereum to migrate to the chain.
Initially, Ronin used the proof of authority consensus algorithm to process transactions. With this algorithm, only the parties that the Ethereum sidechain deemed reputable were allowed to run nodes to verify transactions.
However, due to criticism that the proof of authority mechanism makes blockchains less decentralized, Ronin decided to abandon it and adopted the delegated proof of stake consensus algorithm in April 2023. To become a node operator on Ronin today, you must stake a minimum of 250,000 RON tokens.
Ronin has been attacked in the past, with users losing over $622 million. In early 2022, hackers targeted Ronin’s bridge to Ethereum, stealing ETH and USDC tokens. The US Treasury linked notorious Korean cyber criminals to the exploit. Only $33 million was recovered. However, Ronin’s creator, Sky Mavis, managed to compensate all affected users fully.
Exploring the RON Token
RON serves as a utility token in the Ronin ecosystem. It is used to pay transaction fees. Moreover, holders of the token can deposit it on various staking platforms to receive yield.
The Ronin Wallet
Ronin’s self-developed wallet comes as a mobile app supported on both Android and iOS devices and a browser extension. At the moment, the wallet only supports Ethereum and the Ronin network. However, Sky Mavis said at the start of 2024 that it will add support for more blockchains like Polygon and BNB Chain over the coming months. Additionally, payment gateway Binance Pay will be integrated into the Ronin wallet, allowing users to buy various tokens.
Sky Mavis, the Crypto Startup
Established in early 2018, Sky Mavis is the cryptocurrency startup behind Ronin and the popular play-to-earn game Axie Infinity. The following individuals co-founded it: Tu Doan, Jeffrey Zirlin, Viet Anh Ho Sy, Trung Nguyen, and Aleksander Larsen.
Ronin has pulled funds from several venture capitalists over the years led by Animoca Brands and Andreessen Horowitz. Since its launch, the startup has raised over $300 million.
Ronin-Based Tokens
As of February 2024, the Ronin ecosystem hosts three tokens: SLP, RON, and AXS. As mentioned earlier, RON is used to pay network fees. On the other hand, SLP serves as a reward token in the Axie Infinity game, while AXS is the game’s governance token.
Sky Mavis is planning to upgrade the SLP token this year. The company says it will introduce a “stability fund” to automatically purchase SLP at defined levels to keep the price of digital currency within a desired range. Moreover, Sky Mavis looks to put a cap on SLP’s total token supply.
Games Running on the Ronin Blockchain
The most popular game on Ronin is Axie Infinity. Other games on the blockchain developed by Sky Mavis include Project T Prototype, Defenders of Lunancian Land, and Axie Classic. NFT-powered games launched by external builders on Ronin are Zoids Wild Arena, Civitas, Pixels, and The Machines Arena, among others.
Since migrating from Polygon late last year, Pixels has helped to generate renewed interest around Ronin. The blockchain has recorded a significant increase in daily users since the start of the year. Crypto analytics company Nansen recently reported that Ronin has seen an average of 70,000 daily users since January 1st.