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Ronin - Coggle Diagram
Ronin
The Nansen Take
Introduction
- Ethereum's L1 was not built for gaming
- Games require fast & cheap transactions in order to handle 1000s of micro transactions
- Transactions cost $50-100 and speeds are measured in mins instead of secs
- Enter Ronin for GameFi
What is Ronin?
- An Ethereum sidechain for Axie infinity's community
- Sky Mavis decided to create a fast, reliable and cheap network
What are sidechains?
- Ethereum compatible, independent blockchains which have their own consensus model, block parameters and run in parallel to the Ethereum mainnet
- Many L2 scaling solutions on Ethereum (E.g. Polygon, Arbitrum)
Ronin specs
- Consensus: PoA model which is reputation-based
- Limited no. of validators and more centralized currently since handpicked
- Unlike PoS blockchains, validators are staking their reputation instead of tokens
- Validators risk losing their reputation if they become bad actors or negatively affect the network
- E.g. Binance, Ubisoft and Animoca brands
Why create their own chain?
- Before Ronin, sky mavis partnered with Loom network, an alternative L2 scaling solution
- After about a year, the Loom team decided to focus on Enterprise solutions instead of user facing apps leading to misalignment of goals
- Sky Mavis decided to build their own soln to avoid such dependency in the future
- Most L2 solns today are built with DeFi and payments in mind, not gaming. So this gives Sky Mavis the opportunity to build the first L2 scaling solution dedicated for the gaming community
Ronin Wallet
- Partnered with Ramp to create their own wallet to allow users to purchase Axie ecosystem tokens directly using fiat
- A custodial wallet
- Wallet enables over 300K daily active addresses to interact with the network, peaking at 1.1m in Nov 2021
Transactions & Gas
- At its peak in Nov 2021, ronin processed over 560% of the total no. of transactions on Ethereum
- Block time of 3s (ETH averages 13s)
- ETH gas fees are over 50-100 gwei making micro transactions uneconomical
- Ronin offers 100 free transactions per wallet per day. In future, there will be a small fee once the $RON token is released but it will cost less than a $1
Katana
- Ronin's flagship DeX
- Swap between tokens without leaving the Ronin network
- Reduces the need to bridge assets out of the ecosystem and reduces friction when swapping between Axie's tokens
- The DeX has 2 staking pools - SLP/ETH, AXS/ETH
- Being an LP is the only way to obtain RON tokens currently
AXS staking
- Beside the LPs on Katana, there is a separate staking pool
- Users stake their AXS to generate yield
- Does not require to stake equivalent wETH or ETH alongside their AXS
- Estimated yield for staking is at 87% APR which does not account for compounding
- 30% of circulating supply is being staked currently (20.7M AXS)
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Ronin Token ($RON)
Intro/Background
- RON is the ecosystem token of the Ronin blockchain
- Main purpose: To secure & decentralize the network
- Ronin validators will need to hold and stake $RON to participate in validating blocks
- Validators are rewarded with newly issued $RON
- The RON is divided up among a validator and its delegates pro-rata based on the RON they have staked with the validator
- The validator may also elect to take a fee from its delegates
- Bottomline: Holders of $RON will be able to stake their $RON tokens with a validator to earn $RON rewards and participate in the governance of the n/w
- Max supply of RON is 1,000,000,000
- Split goes as follows: Skymavis (30%), Community (30%), Staking Rewards (25%), Ecosystem fund (15%)
Unlock/Issuance Principles
- Issuance should be high in the beginning to allow for broad distribution of tokens to a wide variety of community archetypes: players, content creators, developers & partners
- RON tokens will not be sold in a public sale or IEO. Instead, through a pool on Katana (DEX) and through an incenctivized liquidity program
- Issuance is reduced each quarter. This allows for almost perpetual issuance (like Bitcoin) while still having a supply cap. As issuance slows over time, Dapp fees and tx fees will make a higher proportion of staking rewards (like Bitcoin)
- The unlock schedule is the max RON that can be issued. The max supply is 1B RON tokens and can potentially be unlocked after 294 months if every token that is unlocked is issued
Staking
Staking principles
- Staking incentivizes RON holders to lock up their tokens and gives them more ownership of the network for this conviction
- Validators are incentivized to grow their network, which increases the value of the fees collected from their delegates
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Validators
Who are these validators?
- Ronin has been live since Feb 2021 and currently secured by 13 validators
- More validators will be added in time and a list of all validators will always be up to date on https://stats.roninchain.com/
How are validators selected?
- Blockchain infrastructure experience and specifically exp running validators
- Building useful apps on top of Ronin - Validators might excel building analytical tools
- Driving adoption of Ronin's apps - Introducing our products to a new audience (partners/vendors)
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Security & Consensus
Who?
- All star cast of partners from traditional gaming, crypto, and NFT space to serve as validators of the network
Current Consensus model - POA
- Currently structured as a POA sidechain. It's an EVM compatible Ethereum fork
1) Blocks require approval from 2/3rd of all validators in order to be approved
- Validators are responsible for authoring and validating the blocks, updating price oracles, and approving deposits and transfer of assets (ETH, ERC20, and ERC721) to and from Ronin
- Validators also control the addition and removal of other validators
- Developed on Ethereum codebase so you can use a web3 client to connect to Ronin
Future Consensus model
Decisions will be made with these principles in mind
- Scalability: Can this infra scale to support billions of users?
- Decentralization: what degree of trust is required to use & reply on this infra?
- Security: How safe is this infra for use by the Ronin community?
Current Blockchain Stack
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- Ethereum Chain where $SLP and Axie NFT (ERC-721) can be minted (BRIDGED WITH)
- Loom network sidechain where Land NFT, Item NFT, Loom ETH and Wrapped ETH are present
Future Blockchain Stack
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- Other chains (BRIDGED WITH)
- Ethereum (BRIDGED WITH)
- Ronin Sidechain where Axie NFT, Land NFT, Item NFT, $AXS, $SLP, Tokenized resources and other tokens are traded and managed
Allowlisted applications
Background
- In the past, several blockchains have struggled with apps that had deployed poorly optimized smart contracts
- To ensure stability of the n/w, the validators & Sky Mavis will work together to allowlist critical infra and value-add apps
- Ronin n/w will eventually evolve into an open n/w where anyone can deploy smart contracts
Some allowlisted apps
Katana
- An AMM dex built on top of Ronin
Key features
- Swap: Users can swap (trade) b/w pairs of ERC20 tokens
- Pool: Users can deposit liquidity for ERC 20 tokens and earn market making fees as well as additional RON rewards
- Rewards: 10% of the RON supply will be distributed to LP in 2 key pools over the first 90 days.
Note:
- AXS and SLP make up 2 of the launch pools. This is intended to give a stake to Ronin to its most fervent users so far, the Axie community
Scatter
- Allows users to easily send various tokens to many different addresses
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Fireblocks
- A crypto and digital asset platform for institutions
Decentralization
Key actions to be taken to decentralize Ronin even further
- Adding validators: Adding a geographically & ideologically diverse stream of validators to Ronin
- Adding new developers: a) wide range of apps for player owned economies b) Financial apps that democratize basic financial services c) Social coordination tools that ensure digital communities can build together efficiently & systemetically
Phases
Phase 1
- Add at least 10 validators outside of Sky Mavis
- At least 3 external teams building NFT games/experiences on top of Ronin
Phase 2
- Ronin is upgraded to delegated PoS with RON staking through validators
- Validators vote on contract deployment process on Ronin
- At least 5 teams building NFT games/experiences on top of Ronin
- At least 20 validators outside of Sky Mavis
Phase 3
- Upgrade Ronin's consensus based on breakthroughs in scalability and security research
- 100+ validators
- Fees from protocols & NFT sales outside of Axie universe sent to validators and shared with delegates
Climate Impact
- Very low carbon footprint
- Less h/w required to secure the chain
- 1 BTC tx: 1079.18 kg CO2
- 1 Doge tx: 265.06 kg CO2
- 1 ETH tx: 125.26 kg CO2
- 1 Ronin tx: 0.0000015 kg CO2
Background
- Currently creating Ronin - An Ethereum Sidechain made specifically for Axie Infinity
- A ronin was a samurai without a master in feudal Japan and it represents Axie's desire to take the destiny of their product in their own hands
What is it?
- EVM based blockchain for devs who want to build player owned economies
Why?
- Axie Infinity was stunted because of Ethereum's limited scalability
Some numbers
- In the 1st month of operating on Ronin, Axie experienced +300% monthly NFT trading volume, +180% monthly unique NFT traders and +131% daily active battlers
- 9 months later -> 250K unique daily active addresses, Katana becomes #2 dex by weekly active users, 5B in deposited value, 15% of all NFT transactions in 2021 happened on Ronin, 2M+ Ronin wallet downloads
Main Benefits
- Cheap & Fast transactions with quick confirmation time (2-3s)
- Ability to withdraw Axie assets back to Ethereum Mainnet using Ronin bridge
- Simplified onboarding of new users with fiat on-ramp and native wallet
Why is Ronin touted to be 'the' battle tested NFT scaling solution/
- Axie Infinity network effects are strong and growing stronger by the week
- Ronin already handles more NFT volume than all other Ethereum NFT scaling solutions combined in 2021 (more than 15% of all NFT volume on Ronin)
- Ronin bridge is the 3rd largest bridge by total volume transferred right behind Polygon and Avalanche
- Over 3B value deposited on Ronin bridge - Top 5 Ethereum bridge by TVL
