Ronin Describes Itself As

Ronin is an EVM (Ethereum Virtual Machine) blockchain tailored for gaming, launched by Sky Mavis, the creators of Axie Infinity. Designed to facilitate near-instant transactions with low fees, Ronin has the capacity to support millions of in-game transactions, and aims to be a strong contender in the Web3 gaming space. 

Project Function

Ronin is designed to be highly scalable, with a focus on supporting Web3 gaming. In its first 9 months Ronin saw approximately 250,000 unique daily active addresses, accumulated $5 billion in TVL, over 2 million wallet downloads, and processed 15% of all global NFT trading volume. The blockchain serves as the platform for all Axie Infinity assets, including Axies, Land, SLP, and AXS. Ronin aims to minimize blockchain “bloat” often found on other platforms, supporting high-quality apps and low network congestion.

Consensus

Upon launch, Ronin utilized Proof of Authority (PoA) consensus, where the network was governed by a set of trusted validators chosen by Sky Mavis and the community. While PoA facilitated faster transaction speeds and reduced energy consumption compared to Proof of Work (PoW), it was criticized for its centralization, as it relied on a small group of validators.

To address these concerns, Ronin transitioned to Delegated Proof of Stake (DPoS), which allows any holder of the RONIN token to participate in the selection of validators. This has improved decentralization, as more participants can engage in network governance. Under DPoS, token holders either vote for themselves as validators or delegate their stake to others, with rewards for block production being distributed between validators and their delegators. The network also employs slashing penalties to discourage malicious behavior by validators, further strengthening the security of the network.

Zero-Knowledge (ZK) Rollups

Ronin is implementing Zero-Knowledge (ZK) rollups, a cryptographic solution that allows for fast transaction validation without revealing details of the transaction itself. ZK rollups enhance the efficiency of the blockchain by enabling transactions to be settled on the mainnet more quickly and securely. 

Cross-Chain Bridges

The Ronin-Ethereum bridge enables cross-chain transactions, validated by 22 bridge operators. Transactions require a 70% consensus among operators before execution - with future plans including the introduction of a multi-proof system with an additional Zero-Knowledge proof layer.

Similarly, bridges between Ronin and other ZK-EVMs are designed with multi-layer security, involving both ZK proofs and consensus from bridge operators, aiming to provide reliable and safe cross-chain transactions within the broader Ronin ecosystem.

Governance

Ronin employs a decentralized governance model managed by 12 governing validators responsible for protocol upgrades and network modifications. Any proposed changes to the network must be approved by at least 75% of validators. This governance structure promotes transparency and inclusivity, allowing stakeholders to participate in shaping the future of the network while maintaining consensus-driven decision-making.

Token Utility

RONIN, the native utility token of the Ronin blockchain, was launched in January 2022. It serves multiple functions within the ecosystem:

• Gas Fees: RONIN is used to pay for transactions on the Ronin network.
• Staking: Validators stake RONIN to run validator nodes and validate blocks. Users can delegate their RONIN to validators to enhance security and earn rewards.
• Governance: RONIN holders may participate in governance decisions, influencing the use of the Ronin Treasury, which collects fees from decentralized applications (dApps) like decentralized exchanges (DEXes) and NFT marketplaces.

RONIN also plays a role as the primary medium of exchange on decentralized exchanges and NFT marketplaces within the ecosystem. It is paired with new tokens to provide liquidity on DEXes and is used as a payment currency in gaming-related transactions, such as in-game purchases and NFT minting. Additionally, RONIN holders receive benefits such as airdrops, whitelist opportunities, and allocations from project launches within the Ronin ecosystem.

Ronin Treasury

The Ronin Treasury is designed to support the long-term growth of the ecosystem by collecting fees from dApps built on Ronin. Leading dApps like Katana DEX and Mavis Market contribute a percentage of their fees to the Treasury. This mechanism aims to keep Ronin financially sustainable while providing resources for further protocol development. The Treasury is governed in a decentralized manner, with clear guidelines for spending aimed at benefiting users, developers, and the protocol as a whole.

About the Founders

Sky Mavis, the team behind Ronin, was also responsible for Axie Infinity, a highly successful Web3 game that has generated over $1.3 billion in revenue and processed more than $4 billion in NFT transaction volumes. Their experience with scaling Axie Infinity has given them unique insights into gaming product development, community building, and go-to-market strategies. Additionally, Sky Mavis provides advisory support and grants to game developers launching on Ronin. 

Risks of RONIN

Like an investment in other crypto assets, there are some general risks to investing in RONIN. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in RONIN is subject to the following specific risks:

• The Layer-1 space is intensely competitive. Several new blockchains continue to emerge which boast high-profile teams, claim unparalleled transaction speed, energy-efficiency, as well as developer-friendly programming languages. Any potential success associated with RONIN is reliant on the extent to which the Ronin is adopted by enterprises and developers.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with RONIN. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The RONIN community and Sky Mavis founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of RONIN have no recourse to the RONIN community, Sky Mavis founding team, or Uphold if RONIN declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing RONIN on the Uphold Platform, Uphold performed due diligence on RONIN  and determined that  RONIN  is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of RONIN  including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of RONIN.
• Any marketing materials put forward by the RONIN  social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with RONIN, including any code defects, security breaches and other threats concerning RONIN and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with RONIN, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of RONIN.