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 mavis, for its side chain (sidechain) 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 cap of over $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 her blog, Sky Mavis explained that the token will contribute to the Ronin Network being fully in the hands of its community of developers and users. In addition, RON will be used to pay gas fees on the chain, which will reduce the number of cancelled transactions and increase the number of transactions that can be sent per day within this network. Axie Infinity NFT owners 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?
As Axie Infinity's popularity began to grow, the developers were forced to create a new blockchain, one that was capable of scaling and being affordable, to overcome the scalability and performance issues and sustain the wave of players who were approaching the now popular blockchain game. Thus, Ronin Network is an Ethereum-linked sidechain that was created specifically for Axie Infinity.
However, due to the scalability trilemma of the block chains, Sky Mavis created 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 a smaller number of validators, so it is highly centralized.
Due to its characteristics and to ensure the safety of the chain, Sky Mavis put the consent of the network in the hands of a handful of highly reputable partners, both from the traditional video game industry and the industry of cryptocurrencies, and NFT.
15% of NFT volume on Ronin Network
Despite its centralization and short lifespan, 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; thus, was the most used scalability solution, even surpassing other chains focused on scalability and performance, such as Solana, Polygon Network y WAX.
Source: Cryptoslam
In total, Ronin Network processed over 13 million transactions and handled over $3.900 billion worth of NFTs in trading volume last year. The massive adoption of the chain and the launch of its governance token RON have its creators expecting that Ronin Network will become the default and preferred NFT scaling solution for blockchain gaming.
RON, validators and staking
With the launch of the RON token, Ronin Network validators are now required to hold and stake the token within the network to participate in validating blocks. Ronin Network validators will receive newly created RON tokens as a reward for their work, based on the amount of tokens in staking within the chain.
In addition, RON holders will be able to make use of a new liquidity pool available on katana, its 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 extend until the end of 2022.
RON incentives are designed to drive token adoption so that Sky Mavis can ensure that the governance of the chain and the game are in the hands of the community.
Source: CoinMarketCap
According to CoinMarketCap data, RON grew 32% in just a few minutes, although at the time of writing, 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's reward token, is going through a moment of anxiety and uncertainty due to its massive loss of value, of more than 97% since last July, when it reached an all-time high of $0,39. According to CoinMarketCap, SLP is trading at $0,01 at the time of this edition.
Incentive Program and Axie Land
Despite some criticism, Sky Mavis assures that she will continue to bring 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 incentive program for game developers, in order to open up Ronin Network and the Axie Infinity ecosystem to the new generation of blockchain builders.
The company is also preparing the launch of its next 3D digital land metaverse, called Project KY o Axie Land, where 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
