Ronin Network, the Ethereum sidechain made for Axie Infinity, has its own token

Axie Infinity developer Sky Mavis announced the launch of RON, the governance token of the Ronin Network sidechain.

RON is the new governance token that the game developer has launched Sky Mavisfor its sidechain (side chain) Ronin Network. The creators of the popular blockchain game and Play to Earn Axie Infinity celebrated on Twitter the successful launch of RON, which has a market capitalization of more than $500 million at the time of writing, according to data from CoinMarketCap.

As a governance token, RON was born to secure and decentralize the Ronin network, launched in February 2021 to meet the scalability and accessibility needs of the Axie Infinity gaming community.

In its Blog, Sky Mavis explained that the token will contribute to the Ronin Network being completely in the hands of its community of developers and users. In addition, RON will be used to pay gas fees within the chain, which will reduce the number of canceled transactions and increase the number of transactions that can be sent per day within this network. Owners of Axie Infinity NFTs will also be rewarded, the company reported, noting that they will receive free transactions based on the assets they hold in their wallets.

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What is Ronin Network?

When the popularity of Axie Infinity began to grow, the developers were forced to create a new blockchain, capable of scaling and being cheap, to overcome scalability and performance issues and sustain the wave of players approaching the game. now popular blockchain game. A) Yes, Ronin Network is an Ethereum-pegged sidechain that was created specifically for Axie Infinity.

However, due to the scalability trilemma of blockchainSky Mavis created the Ronin Network under the consensus protocol Proof of Authority (PoA), which guarantees a high level of scalability and speed, sacrificing decentralization. PoA is a variation of the protocol Proof-of-Stake (POS) which uses fewer validators, so it is highly centralized.

Due to its characteristics and to guarantee the safety of the chain, Sky Mavis put the consensus of the network in the hands of a handful of highly reputable partners, from both the traditional video game industry and the gaming industry. cryptocurrencies and the NFT.

15% of NFT volume on the Ronin Network

Despite its centralization and short life, the Ronin Network is one of the most successful scalability solutions seen so far. According to data published by Sky Mavis, in 2021, this blockchain processed 15% of all NFT volume; so that was the most used scalability solutionoutperforming even other chains focused on scalability and performance, such as Solarium, Polygon Network and WAX.

NFT volume per blockchain.
Source: CryptoSlam

In total, last year the Ronin Network processed more than 13 million transactions and handled more than $3.9 billion in NFT trading volume. The massive adoption of this chain and the launch of its RON governance token has its creators thinking that the Ronin Network will become the preferred default NFT scaling solution for blockchain gaming.

RON, validators and staking

With the launch of the RON token, validators on the Ronin Network are now required to hold and stake the token within the network to participate in block validation. Ronin Network validators will receive newly created RON tokens as a reward for their labor, based on the number of tokens in stake within the chain.

In addition, RON holders will be able to make use of a new liquidity pool available at Katanaits own DEX, where 500,000 RON will be distributed daily in rewards and incentives until next Thursday, February 3. Sky Mavis will then launch rewards for new liquidity pools, which will run until the end of 2022.

The incentives through RON are designed to drive adoption of the token so that Sky Mavis can ensure that the governance of the chain and the game are in the hands of the community.

Ronin Network RON token price.
Source: CoinMarketCap

According to data from CoinMarketCap, RON grew 32% in a few minutes, although at press time, it has fallen 18% from its all-time high.

Conflict between RON and SLP

Although the launch of the RON token was highly anticipated since it was first announced, its arrival produced several reactions in the Axie Infinity community. holders of SLP (Smooth Love Potion), the blockchain game reward token, are going through a time of anxiety and uncertainty due to their massive loss in value, of more than 97% since last July, when it reached an all-time high of $0.39. According to CoinMarketCap, SLP trades at $0.01 at the time of this edition.

Incentive Program and Axie Land

Despite some criticism, Sky Mavis assures that it will continue to add value and utility to Axie Infinity as its cornerstone. In fact, she reported that in the coming weeks, she will announce the launch of her first game developer incentive program, in order to open up the Ronin Network and the Axie Infinity ecosystem to the new generation of blockchain builders.

The company is also preparing to launch its next 3D digital earth metaverse, called Project K or Axie Landwhere the community can build and share their own virtual worlds.

Continue reading: “Project K”, the next metaverse to unlock the virtual earth in Axie Infinity