Project Introduction

Ronin is an Ethereum sidechain built by Sky Mavis, the developer of Axie Infinity. It supports EVM-compatible smart contracts and protocols, enabling developers to build high-performance, feature-rich blockchain projects. Ronin is specifically tailored as a long-term scaling solution for Axie Infinity, which means it is optimized for viral adoption and provides global access to blockchain gaming revolution. These aspects make Ronin well-suited for collectibles, art, and of course, gaming.

Author

JUMPENG, Senior Researcher at Shiliantou Research Institute. Master of Finance from Huazhong University of Science and Technology, with 7 years of industry experience, specializing in Layer1, DeFi, NFT, Layer2, Gamefi, and has researched over 2000 projects, producing over 500 in-depth research reports.

1. Research Highlights

1.1. Core Investment Logic

Backed by the popular game Axie Infinity with a large user base: As a pioneer in the blockchain gaming field, Ronin's biggest competitive advantage lies in its association with the well-known blockchain game Axie Infinity, which currently has millions of active players, providing Ronin with a solid user base. The greatest value of a public chain lies in the applications and user base it supports, and Axie's success has attracted a large number of existing users to Ronin, not only providing stable transaction volume but also establishing a leading position for Ronin in the blockchain gaming race. Compared to other competitors, Ronin has a mature flagship application in Axie Infinity, with a user base and commercial value far exceeding other on-chain games. This has accumulated valuable operational experience for Ronin and given its ecosystem network effects that are difficult for other competitors to replicate. As Ronin continues to enrich its ecosystem content and attract more high-quality games, Axie Infinity's user base and traffic advantage will further amplify. Ronin has the potential to become the preferred infrastructure for blockchain game developers and dominate the on-chain gaming race. Axie Infinity's success has laid a solid foundation for Ronin.

Large ecosystem scale, technological advantages, and rich management experience: After the recent collaboration to introduce Pixels to Ronin, the daily active users exceeded 100,000, proving its ability to convert massive traffic. This will support Ronin in absorbing more games in the future, with a sufficient user base available for conversion. Despite Axie's brilliant record, the market still believes in Sky Mavis' capabilities, with several leading games joining Ronin to expand their own ecosystems, which is an important foundation for Ronin's future development, affirming its leading advantages in technology and service quality. Additionally, Ronin's chain technology has significantly improved performance, leading to an enhanced user experience. Ronin adopts DPOS technology, with TPS reaching thousands and ultra-low gas fees, far exceeding its peers, which will attract more games to choose Ronin and provide players with a smooth experience. As the technology continues to be optimized and upgraded, its technological advantages will become more apparent. Looking at the team, Sky Mavis has accumulated rich experience in on-chain game development and operational management based on the success of "Axie," despite the reputation damage caused by asset theft, it has also brought valuable experience to the team. If Ronin can achieve further success, it will undoubtedly add a legendary touch.

1.2. Valuation

Comparing Ronin's valuation with other gaming public chains: Immutable X (IMX): The current circulating market value is approximately $1.5 billion. WAX: WAX is a blockchain for digital collectibles and assets. The current circulating market value is approximately $230 million. Ronin: The current circulating market value of Ronin is approximately $217 million, lower than IMX and WAX. The comparison of their valuations is mainly based on the following aspects:

A. Ecosystem scale and user base: IMX has a much larger user base than Ronin through famous games like Gods Unchained, and WAX, as an established project, also has a larger user base than Ronin, which will affect its market value.

B. Number of applications: IMX and WAX have more on-chain gaming applications than Ronin, reflecting a stronger ecosystem attraction, an area in which Ronin needs to continue to strengthen.

C. Technological advantages: IMX uses zkRollup technology with lower interaction costs and obvious technological advantages, but Ronin has been specifically optimized for gaming and still has long-term potential.

D. Project reputation: IMX and WAX have not suffered major security incidents, and their community trust is higher. Ronin needs time to restore market confidence in this regard.

E. Future growth potential: All three face opportunities brought by the flourishing period of Web3, but IMX and WAX have established foundations, while Ronin needs to quickly make up for the gap.

F. Financial aspect: IMX has received more resources to support its development, while Ronin's source is the Axie closed-loop system, making its financial situation relatively inadequate.

Overall, despite the asset theft incident once causing Ronin to be abandoned and even struggling, they have not given up on their goals. With problem resolution and ecosystem development, its valuation is expected to further increase and continue to surpass its public chain competitors. Ronin's strong network effect is the key to its surpassing.

1.3. Project Risks

The project risks of Ronin mainly lie in high dependency, an underdeveloped ecosystem, security issues, decentralization risks, and intense competition in the public chain leading to a test of its technological position, as detailed in the 5.2 SWOT analysis section of the report.

2. Project Overview

2.1. Project Introduction

Ronin is an EVM-compatible chain designed for gaming, which achieves smooth and seamless gaming experiences by establishing sidechains, especially providing crucial support for the well-known NFT game Axie Infinity. The initial purpose of Ronin's establishment is to address the high fees, slow speed, and rough user experience issues faced by the Ethereum network, which have caused inconvenience for NFT gaming projects. In contrast, Ronin offers low-cost and fast transactions, as well as a rich ecosystem of developer and user tools. Ronin was launched by the creators of the Axie Infinity project, Sky Mavis. Axie has generated revenue of over $1.33 billion to date, and Ronin has proven its ability to support millions of daily active users, processing over $4 billion in NFT transactions, demonstrating its advantages. By optimizing transaction immediacy and negligible gas fees, Ronin enables smooth transactions for millions within its ecosystem, establishing its leading position in the Web3 gaming field. Additionally, the native token RON plays a triple role in transactions, governance, and utility within the platform.

Source: Ronin official website homepage

2.2. Team Situation

2.2.1. Overall Situation

Ronin is led by Sky Mavis, a chain game studio based in Vietnam, founded by Trung Nguyen and Jeffrey Zirlin in 2018. Sky Mavis has successfully developed and operated the well-known chain game Axie Infinity, possessing rich experience in blockchain and game development. The Ronin project is specifically designed for applications within the Axie ecosystem. The Ronin team is highly international, with the technical development team mainly located in Sky Mavis' multiple research and development centers. In addition to the founders of Sky Mavis, the management team also includes experts from well-known companies in the industry such as Ubisoft and Binance. The team is large, with over 100 employees from Sky Mavis distributed across Vietnam, the United States, the Philippines, and other locations for research and development. Overall, with Sky Mavis' rich experience and the gathering of various resources and talents, Ronin has formed a comprehensive and well-structured research and development and operation team.

2.2.2. Core Members

Trung Nguyen: Co-founder and CEO of Sky Mavis. A Vietnamese programmer, he graduated from the National University of Singapore with a Ph.D. in Computer Science. He has been passionate about gaming and programming since childhood and founded a game company in Singapore in 2012. In 2018, he co-founded Sky Mavis with Jeffrey Zirlin. Trung Nguyen is responsible for overall direction and major technical decisions at Sky Mavis. After the successful launch of Axie Infinity, he guided Sky Mavis to focus on building a complete blockchain gaming ecosystem. On the non-technical side, Trung Nguyen excels in product thinking and business model validation. Through multiple research efforts, he determined the direction of Axie's gameplay, helping the game quickly gain user recognition. During the initiation of the Ronin project, it was Trung Nguyen who proposed the idea of establishing a professional underlying support system. He personally supervised the technical planning of Ronin and resolved various challenges, leveraging his deep coding skills and rich project management experience. Trung Nguyen has always been a core decision-maker and technical leader at Sky Mavis.

Jeffrey Zirlin: Co-founder and Chief Product Officer of Sky Mavis. He graduated from the Massachusetts Institute of Technology with a degree in Computer Science and Human-Computer Interaction. In the early stages of his career, he worked on the Google Play development team, responsible for game product operations. Later, he became increasingly interested in blockchain and decided to join Trung Nguyen in establishing Sky Mavis. At Sky Mavis, Jeffrey Zirlin leads product design and operations, ensuring the project's qualitative success. Many optimization measures for the Axie product come from his thinking. Apart from work, Jeffrey Zirlin actively participates in building the blockchain community, speaking at various summits to share Sky Mavis' experience and support collaborations with other projects. After the completion of the Ronin chain project, Jeffrey Zirlin led Sky Mavis in collaborating with other game studios to attract more DApps to join the Ronin ecosystem. He excels in product thinking and community operations, continuously improving and optimizing the Axie product to transition from niche to mainstream, ensuring the project's continuous growth. With his exceptional product design abilities and outstanding project promotion capabilities, Jeffrey Zirlin plays an important role in guiding the flourishing development of the Ronin chain ecosystem at Sky Mavis.

2.3. Financing Situation

On November 8, 2019, Sky Mavis announced that the company had raised $1.465 million in a new round of financing, with Animoca Brands leading the investment and participation from Hashed, Pangea Blockchain Fund, ConsenSys, and 500 Startups.

On October 5, 2021, Sky Mavis completed a Series B financing round of approximately $150 million at a valuation close to $3 billion, with a16z leading the investment and participation from Paradigm.

On April 6, 2022, Sky Mavis completed a $150 million financing round, with Binance leading the investment and participation from Animoca Brands, a16z, Dialectic, Paradigm, and Accel. The new financing will be used to compensate user funds affected by the Ronin attack event. However, according to subsequent reports, Sky Mavis only raised $11 million in this round of financing, according to data from VentureCap Insights, a Singapore regulatory filing tracker, which reduced the company's valuation from $30 billion to $19.5 billion.

Source: ROOTDATA

2.4. Past Development and Roadmap

2.4.1. Past Development

Date

Event

February 1, 2021

Axie Infinity announced the official launch of the Ethereum sidechain Ronin mainnet.

January 27, 2022

Announced the official launch of the Ronin Network governance token RON.

March 29, 2022

Ronin's cross-chain bridge was hacked, resulting in a loss of approximately $620 million.

September 9, 2022

Announced that Google Cloud has become the 18th validator node on the Ronin Network.

January 12, 2023

Released the desktop game aggregation platform Mavis Hub 2, the new version allows login using the QR code of the Ronin Wallet.

March 30, 2023

Launched RON staking functionality and announced new partnerships to expand new IPs.

April 5, 2023

Announced the addition of dark mode and NFT transfer functionality to the Ronin Wallet.

May 17, 2023

Launched the NFT marketplace Mavis Market to support NFT trading on Ronin.

September 12, 2023

Play-to-earn (P2E) chain game Pixels will migrate from the Polygon network to the Ronin network.

October 13, 2023

Announced the launch of the Lucas (v2.6.2) upgrade and the Shillin hard fork on the Ronin mainnet.

November 2, 2023

South Korean game production company ACT Games plans to migrate all its games to the Ronin Network.

November 11, 2023

Announced that its domain service Ronin Name Service (RNS) will publicly sell .ron domains on November 15.

2.4.2. Development Plans and Roadmap

Based on current information, Ronin's future development roadmap may include the following aspects:

A. Continued expansion of the ecosystem: Ronin will continue to collaborate with more game developers to attract more high-quality games to join the Ronin ecosystem. Recently, Ronin has introduced games such as Zoids Wild Arena and Pixels, and more games are expected to join in the future.

B. Improving network performance: Ronin plans to conduct performance optimizations in the second half of 2023 to increase transaction speed and throughput through technical upgrades, supporting a higher number of daily active users.

C. Enhancing network security: Following the security incident in 2022, Ronin will continue to strengthen network security, implement tighter internal control processes, and enhance supervision of validators and bridges.

D. Hosting a developer conference: Ronin plans to host its own developer conference in 2023 to engage in deeper discussions with the global developer community and attract more developers to contribute to the Ronin ecosystem.

E. Rebuilding brand image: Ronin will continue to focus on rebuilding its brand image, re-establishing user trust through community activities, media promotion, and other means to enhance its reputation and influence within the industry.

2.5. Social Media Data

As of November 15, 2023, Ronin has been actively operating on social media, gaining widespread attention. Its main operating channels include Twitter and Discord. Ronin has over 157,034 followers on Twitter, with frequent updates and promotional posts. The Discord server shared by Ronin and its parent company Sky Mavis for the game Axie has a larger scale, with over 608,908 members and up to 35,787 real-time online users, facilitating frequent information exchange and interaction. Axie's Twitter has an even larger following, reaching 868,339, making it the most influential platform for Ronin. Overall, Ronin has been effectively operating through mainstream social channels, ensuring timely information dissemination and maintaining close contact with the community, leveraging the resources of Axie's existing user base for accelerated diffusion. Below are the specific data for each platform:

Media Channels

• Twitter: 157,034 followers
• Discord: 608,908 members, 35,787 online/active
• Axie Twitter: 868,339 followers
• Medium: N/A

3. Project Analysis

3.1. Project Background

Ronin is a sidechain developed to address the on-chain limitations faced by the popular NFT game Axie Infinity. Axie Infinity is an Ethereum-based on-chain NFT card game, and with its rapidly growing user base, congestion issues on the Ethereum network have led to slow game transaction speeds and high gas fees, significantly impacting user experience. To address Ethereum's network congestion issues, the developer of Axie Infinity, Sky Mavis, decided to independently develop a game-optimized sidechain called Ronin. Ronin was officially launched in November 2020 and went live on the mainnet in April 2021. Subsequently, Sky Mavis utilized Ronin to build the ecosystem for the rising star Axie, introducing services such as the Katana exchange, liquidity mining, and staking. Ronin aims to provide a fast and low-cost on-chain gaming experience. Compared to Ethereum, Ronin can process 3,000 transactions per second and offers transaction fees of just a few cents, significantly improving the smoothness of the Axie Infinity game.

Sky Mavis aims to build a fully-featured on-chain gaming ecosystem through Ronin. In addition to Axie Infinity, Ronin has attracted multiple third-party games to join and plans to launch more applications such as an NFT marketplace, lending protocols, and metaverse platforms. With the rise of blockchain games, Ronin, with its excellent gaming experience and ecosystem development, is poised to become the preferred infrastructure for blockchain game development, driving Web3 games into the mainstream.

3.2. Project Principles

Ronin adopts a sidechain architecture to achieve bi-directional asset circulation with the Ethereum mainnet through bridging. Ronin uses a hybrid consensus mechanism of Authority Proof (PoA) and Delegated Proof of Stake (DPoS), with the following principles:

3.2.1. Sidechain Architecture

A sidechain is an independent blockchain that operates in parallel with the main chain, allowing assets and information to be exchanged with the main chain through bi-directional anchoring. Its goal is to offload traffic from the main chain, improve overall transaction processing capacity, and allow users to quickly transact on the sidechain while maintaining asset connectivity with the main chain. Ronin, as an Ethereum sidechain, has its own block generation mechanism, consensus algorithm, and can achieve asset interoperability with the Ethereum mainnet through bridging. This sidechain architecture allows Ronin to focus on optimizing for gaming scenarios while maintaining connectivity with the Ethereum ecosystem. Through the Ronin bridge, users can transfer assets such as ETH and ERC20 tokens from the Ethereum mainnet to Ronin, and native tokens and NFT assets issued on Ronin can also be transferred back to the Ethereum mainnet, enabling seamless asset movement between the two chains.

3.2.2. Hybrid Consensus Mechanism

Ronin utilizes a hybrid consensus mechanism of Authority Proof (PoA) and Delegated Proof of Stake (DPoS). The Authority Proof is responsible for block production by a set of trusted validators designated by Sky Mavis. These validators' identities are trusted and ensure the secure operation of the Ronin network. The DPoS mechanism is open to users, allowing those holding a sufficient amount of RON tokens to become validators. RON holders can stake their tokens to vote for their preferred validators and receive a portion of block rewards, enhancing the decentralization of Ronin.

1) Authority Proof (PoA)

Ronin initially adopted the PoA consensus mechanism, which selected a group of professional and reputable validators to verify and package transactions to maintain network operation. These validators were selected by Sky Mavis and the community based on their professionalism and reputation. Validators package transactions into new blocks and add them to the blockchain, and the addition or removal of validators generally requires approval from the majority of current validators, incentivizing them to operate the network honestly.

A. Compared to consensus mechanisms like PoW, PoA has the advantage of high energy efficiency as it does not require significant computational power to verify transactions. Additionally, since new blocks can be formed with the approval of a small number of validators, PoA can achieve faster transaction speeds and lower transaction fees than PoW, thereby enhancing the gaming experience.

B. However, PoA has been questioned because it relies on a small number of validators to maintain network operation, making it difficult to quickly detect and correct issues if these validators encounter problems, posing potential single point of failure risks.

Overall, the PoA mechanism can bring efficiency and performance optimizations, but its level of decentralization needs to be further strengthened.

2) Delegated Proof of Stake (DPoS)

To further enhance the decentralization of Ronin, DPoS was added on top of the existing PoA mechanism to select validators. In the DPoS model, token holders can delegate their voting rights to candidate validators. The more delegated votes a validator receives, the higher their chances of being selected. Validators are selected by staking a certain amount of RON tokens.

A. The selected validators are responsible for confirming transactions, packaging new blocks, and the rewards generated are distributed based on the contribution of delegated votes. This significantly lowers the barrier to participation and achieves transparency in the role of validators. In addition, Ronin has established a penalty mechanism, where validators will face reduced rewards if they fail to produce blocks or engage in fraudulent behavior, effectively curbing improper conduct.

B. Compared to a pure PoA approach, the DPoS model in Ronin, through open elections and penalty mechanisms, greatly enhances its level of decentralization while maintaining high transaction processing capacity.

The combination of these two mechanisms allows Ronin to have high security and decentralization characteristics. Additionally, the hybrid consensus mechanism enables Ronin to achieve high-speed transactions of 3,000 per second, effectively combining its application scenarios as a foundational infrastructure for chain games, providing efficient, secure, and convenient on-chain gaming experiences.

3.2.3. Bridge

The bridge plays a crucial role in the Ronin network, connecting Ronin with other EVM chains to achieve seamless asset circulation.

Specifically, the Ronin bridge is jointly maintained and operated by multiple bridge operator nodes. Each validator node must run both a validator node and a bridge operator node simultaneously, or else they will lose the eligibility to receive rewards. Bridge operator nodes are responsible for confirming deposit and withdrawal events of assets between chains:

A. When users withdraw from Ethereum to Ronin, they need to provide transfer proof to the bridge operator. After verification, the corresponding assets can be generated on Ronin.

B. Conversely, users can also use the bridge operator to withdraw assets from Ronin to other EVM chains. In this case, they need to provide transaction proof from the Ronin network. At the same time, the bridge operator will lock the corresponding assets on Ronin and release equivalent assets on the target chain.

3.2. Bridge

This mechanism ensures the secure interoperability of assets between different blockchains. To incentivize bridge operator efficiency and integrity, Ronin has designed a system of rewards and penalties. For example, operators who cause accidents due to operational errors will have their qualifications revoked. Through the Ronin bridge, assets can flow seamlessly between EVM-compatible chains, significantly enhancing the network's internal and external connectivity capabilities.

3.3. Nodes

3.3.1. Ronin Nodes

Ronin nodes are the core components of the Ronin network infrastructure, mainly consisting of three types:

1) Non-Validator Nodes: These nodes do not participate in consensus but synchronize ledger states and observe the network, providing resource query support for DApps.

2) Validator Nodes: Validator nodes in the Ronin network are responsible for producing new blocks and validating transactions. They are the core of the entire network. Validator nodes need to stake a certain amount of RON tokens to earn the right to produce blocks. Block production follows a round-robin system, with different nodes taking turns to become block producers. When a node becomes a block producer, it collects transactions from the network to form a candidate block. Other validator nodes then vote to confirm the block. If more than 2/3 of the nodes confirm, the block is added to the chain. Validator nodes can also modify certain on-chain parameters, such as adjusting transaction fees or adding/removing validator nodes, with the requirement of obtaining over 2/3 majority approval from governance nodes.

3) Archive Nodes: These nodes are responsible for long-term storage of historical ledger data, tracing back to the genesis block, and providing long-term query support for background services such as browsers.

Validator nodes and non-validator nodes regularly compress recent data, while archive nodes maintain long-term storage of all information. All nodes are deployed and managed through open-source methods. In addition to participating in consensus, validator nodes can also compete for block production through RON staking. Ronin operates in a distributed network form, with nodes working together to ensure the stable and efficient operation of the system. Validator nodes, in particular, play a crucial role in producing new blocks and confirming transactions, serving as an important support for the Ronin ecosystem. The node mechanism is an important part of Ronin's successful operation.

3.3.2. Bridge Nodes

Bridge nodes act as the bridge for asset conversion between the Ronin network and the Ethereum network. When users withdraw from the Ethereum network to Ronin, they need to initiate a transfer on the Ethereum chain and provide transaction proof. After verification, the bridge node releases the corresponding amount of tokens on the Ronin network. Conversely, if users want to withdraw assets from Ronin to Ethereum, they need to provide transaction proof from Ronin. After confirming the transaction, the bridge node locks the user's tokens on Ronin and releases the corresponding amount of tokens on the Ethereum network. Bridge nodes are jointly supervised to ensure the security of the asset conversion process.

3.4. Project Roles

The Ronin network mainly consists of three types of roles: delegators, validators, and bridge node operators.

1) Delegators: Delegators pledge their RON tokens to validators and earn rewards from it. Any RON token holder can choose to become a delegator. Delegators do not need to run nodes; they only need to stake tokens with validators to earn a share of block rewards. Delegators can choose based on conditions such as the revenue sharing ratio of validators. Becoming a delegator provides stable token income and also allows participation in Ronin network governance, lowering the barrier for ordinary investors to participate.

2) Validators: Validators are responsible for maintaining the Ronin network, producing and validating blocks. Validators need to stake a large amount of RON tokens and are responsible for running nodes. Based on the amount of staked RON tokens, validators have the opportunity to produce blocks. Validators can stake on their own or receive staking support from delegators. Their income sources include block rewards and transaction fees. Validators need to fulfill their responsibilities responsibly, or they will face penalties.

3) Bridge Node Operators: Bridge node operators are responsible for asset conversion between the Ronin network and the Ethereum network. Bridge nodes monitor asset changes on both chains and execute token exchanges on the other chain once deposit/withdrawal operations are detected. Bridge node operators also need to stake RON tokens and ensure the stable operation of nodes. Failure to respond to asset conversions in a timely manner will result in penalties.

Through the balance and cooperation of these three roles, the Ronin network has built an efficient blockchain gaming infrastructure. Each role has clear rights and responsibilities, and they mutually supervise each other, forming an ecological closed loop.

3.5. Project Ecosystem

According to the information displayed on the official website, the Ronin project ecosystem mainly includes gaming and DApp aspects.

Source: Ronin Official Website

3.5.1. Gaming

In the gaming project aspect, the Ronin ecosystem currently gathers several well-known games, including Axie Infinity, The Machines Arena, Pixels, and more.

1) Axie Infinity

Axie Infinity is the largest game on Ronin, where players can collect and nurture "Axies" for PvP battles. Axie Infinity is a turn-based tactical card battle game where players can assemble teams of creatures called Axies to compete against each other.

• Axie Classic was the game's first official version, running 21 seasons from December 2019 to June 2022.
• Building upon Axie Classic, the game introduced an upgraded version called Origins in 2022, providing new adventure and competitive mode experiences. Origins paved the way for on-chain evolution of Axies and laid the foundation for new mechanisms, such as free starting Axies and equipable items. Origins is currently in its 5th season. The game revolves around Axies, which are team-based battling digital pets. Players accumulate AXP through real battles to upgrade their Axies, transforming them from passive NFTs into dynamic personalized NFTs through gameplay participation.

The introduction of the AXP system is significant: 1) It allows Axies to evolve from passive NFT assets to personalized digital creatures that accumulate experience through gameplay; 2) It brings deep gaming experiences to the Axie Infinity ecosystem; 3) It provides design references for other NFT games and projects that adopt similar on-chain upgrade mechanisms.

This marks the transformation of Axie from a passive role to an organic creature that can level up through accumulation, and also indicates that similar on-chain upgrade mechanisms may become widespread in the vast NFT and gaming fields in the future. AXP has realized the core concept of Axie, injecting new vitality into Axie Infinity and the overall NFT ecosystem.

Source: Axie Official Website

2) Pixels

On November 17, 2023, Ronin and Axie Infinity co-founder Jeff Zirlin announced on X platform that the daily active addresses of the blockchain game Pixels have exceeded 100,000. In addition, data from Blur shows that the floor price of Farm Land by Pixels NFT is currently 0.74 ETH, with a 7-day increase of 85.93%.

Source: Pixels Official Website

Pixels is a play-to-earn farming game based on the metaverse concept. As the first blockchain game to integrate NFT avatars, Pixels was launched in 2021, allowing players to farm and have fun in the game world using NFT avatars.

Pixels uses a three-tier asset system, including land, resources, and tokens. Players can choose to conduct business on free, rented, or self-purchased land. They can exchange harvested resources for the in-game currency Berry to facilitate circulation.

In February 2022, Pixels completed a $2.4 million seed round of financing, led by Animoca Brands and PKO Investments, with participation from OpenSea and others. On October 31, 2023, Pixels migrated to Ronin. The Pixels team stated that they chose Ronin because it has the most Web3 users and the strongest community.

A. After migrating to Ronin, Pixels has exceeded 55,000 daily active users and plans to launch the PIXELS governance token in Q4.

B. Pixels has also received strong support from Ronin and Axie Infinity co-founder Jihoz. Jihoz even appears as an NPC in the game and promotes Pixels on social media.

C. Currently, Pixels has integrated more than 50 well-known NFT brands, achieving deep GameFi interoperability. In the future, Pixels will also launch the governance token Pixel for division of labor, and the team has a rich background in game development. Since its launch, the daily active players have exceeded 55,000, and the scale is expanding.

As one of the key supported projects in the Ronin ecosystem, Pixels is loved by Axie players. With product iterations and ecosystem reshaping, Pixels may become another representative project of the Ronin ecosystem, driving the flourishing development of the Ronin ecosystem alongside Axie.

Source: Ronin Official Website

3) ACT Games

ACT Games is a well-known game company in South Korea, dedicated to promoting TCG and other card games. Its flagship work Zoids Wild Arena was originally launched on Polygon. Zoids Wild Arena is a collectible card game available on Android and PC, where players can collect cards of Zoids series mechanical creatures and engage in 1v1 or 3v3 battles. The cards have different attributes and talents, similar to Hearthstone. In November 2023, ACT Games partnered with Sky Mavis to bring Zoids Wild Arena and all future games into the Ronin ecosystem. ACT Games stated that this collaboration will leverage Ronin's technological advantages to maintain the high standard experience expected by game players and IP fans. After the migration, Zoids Wild Arena players can use the Ronin wallet for various activities, such as in-game transactions, and take advantage of Ronin's convenient asset exchange and circulation capabilities.

This is also an important move for Sky Mavis to continue promoting the development of the gaming ecosystem. ACT Games' actions demonstrate their trust in the Ronin system and their willingness to jointly build a more complete GameFi ecosystem. For Ronin, the addition of ACT Games will also bring new reputation to the ecosystem.

4) Other Gaming Ecosystem

In addition to the three main games mentioned above, Sky Mavis has been collaborating with multiple game studios to continuously enrich the Ronin ecosystem. Early collaborators include Directive Games, Bali Games, Tribes Studio, and each studio is now using Ronin to develop their own games. Directive Games' "The Machines Arena" as the first Ronin game is leading the way.

A. "The Machines Arena" is a 4v4 multiplayer online shooting game where players battle on a sci-fi battlefield as tanks or support heroes.

B. The game uses a third-person perspective and offers both single-player and multiplayer modes. The game is currently in the testing phase on PC and is planned to be listed on the Epic Games Store. Directive also plans to release a mobile version on iOS and Android, achieving a true cross-platform gaming experience.

Source: The Machines Arena Official Website

Furthermore, Sky Mavis has also partnered with the NFT project CyberKongz. In July, CyberKongz launched a new NFT series "Phantom Sea," with 4,000 pieces available on Ronin through Mavis Market. Sky Mavis also stated that they will use "Phantom Sea" to reward Axie players. Additionally, CyberKongz will collaborate with Ronin to develop a new game with "Phantom Sea" as the theme.

By continuously introducing high-quality gaming projects, the Ronin ecosystem continues to enrich, providing users with diverse and mature gaming experiences, further strengthening Ronin's position as a mainstream blockchain gaming platform.

5) Conclusion

As the first well-known blockchain gaming project, Axie has led to rapid expansion of the Ronin ecosystem. Sky Mavis sees Axie as just the beginning and aims to build it into a globally recognized IP. Despite significant setbacks in the past, Sky Mavis has persevered, upholding the vision of providing developers with high-quality and cost-effective services. They understand that this is the key to the long-term capabilities of blockchain gaming - rapid response and low-cost interaction. Leveraging the early success of Axie, more and more projects choose to trust Sky Mavis and join the Ronin ecosystem. The ecosystem is now increasingly mature and rich, further strengthening Ronin's position as a mainstream blockchain gaming platform. The challenge facing Sky Mavis is how to continue to maintain the attractiveness and competitive advantage of Ronin. The management team stated that they will uphold the concept of open sharing, continuously optimize the technical architecture and operational experience, and bring more value to the project. At the same time, they aim to attract more excellent games to join. As long as Sky Mavis can persist in their efforts and consolidate Ronin's user stickiness among game developers, they may have the opportunity to become one of the winners in the Web3 ecosystem in the future.

3.5.2. Dapp

1) RNS

According to the official Twitter announcement, on November 16th, the Ronin Name Service (RNS) has started its public sale and will hold a 48-hour auction for selected high-value .ron domain names. RNS has been integrated with Ronin Wallet, Ronin Explorer, Mavis Market, App.Axie, and Sky Mavis Account Service.

The Ronin Name Service (RNS) is a distributed naming system based on the Ronin blockchain, allowing users to bind a readable ".ron" domain name to a long string of numeric addresses.

A. Domain Categories: RNS domains are divided into regular domains, auction domains, and protected domains. Regular domains are applied for on a first-come, first-served basis; auction domains are obtained through bidding; protected domains are reserved for partners and well-known brands.

B. Domain Pricing: Domain prices include annual fees and reservation fees for auction domains. Annual fees are charged based on the length of the domain name; the reservation fee is 15% of the auction price and may change due to domain name transactions and quotations.

C. Domain Levels: Based on the number of characters and market prices, RNS categorizes domain names into levels 1, 2, and 3. Higher-level domain names are shorter and rarer, and the level is indicated by the color of the domain name.

D. Domain Management: Users can choose a primary domain, renew domain names, and trade domain names on Mavis Market. Only the original user can renew the domain name within 90 days before it expires.

E. Use Cases: Users can use RNS to transfer and receive assets instead of using lengthy wallet addresses. RNS also provides a unique identification within the Ronin ecosystem.

Overall, RNS makes Ronin addresses more concise and readable, enhancing user experience and asset usability. Its categorized domain system also creates brand value.

2) Staking

Ronin Staking (RON Stake) is an application on the Ronin blockchain that allows RON holders to participate in Ronin network governance and earn rewards by staking RON tokens with validator nodes.

A. Staking Targets: RON holders can choose to stake RON with any validator node, and staking with different nodes can yield different profit shares.

B. Stake Management: Users can increase or decrease the staked amount of RON and transfer staked RON to other validator nodes at any time.

C. Reward Collection: Staking RON can earn profit shares from validator nodes, and the rewards will be settled in the user's wallet balance.

D. Governance Participation: The amount of staked RON determines the user's voting weight in Ronin network governance.

Through RON staking, ordinary RON holders can participate in the construction of the Ronin network and gain economic rewards. This helps attract more users to contribute to the Ronin ecosystem and also enhances the decentralization of the Ronin network.

3) Katana

Katana is a decentralized exchange on the Ronin network, allowing users to trade digital assets within the Ronin ecosystem on the platform.

A. Swap: Katana supports trading pairs of different ERC20 tokens within the Ronin network, allowing users to easily exchange tokens.

B. Liquidity Mining: Users can provide liquidity to trading pairs, become liquidity providers, and earn transaction fees and RON rewards.

C. Staking Mining: Users can also stake the provided liquidity tokens to earn additional RON mining rewards.

D. Data Statistics: Katana provides detailed data statistics and analysis for users, including trading and earnings.

Katana brings decentralized trading functionality similar to Uniswap to the Ronin ecosystem, reducing the need for cross-chain exchanges and providing users with ways to earn profits, which helps attract more users to join the Ronin network.

4. Track Space and Potential

4.1. Track Overview

4.1.1. Track Positioning

Ronin is positioned as a gaming-specific chain, aiming to provide high-performance and low-cost infrastructure support for blockchain games.

4.1.2. Track Scale

With the rise of Web2.5 games, the importance of gaming platforms and ecosystems is becoming increasingly prominent. Compared to individual games, platforms and ecosystems have a longer lifecycle and can better withstand the impact of the end of a single game's lifecycle. In addition, platforms aggregate game resources such as funds, communities, and incubation capabilities, providing important customer acquisition channels and reducing customer acquisition costs for new games. They can also capture some of the value of individual game projects through the design of token economic systems. For game players, the navigation and blockchain infrastructure provided by platforms can help them easily find games they like and optimize the transition from Web2 to Web3. Therefore, in the future, gaming platforms are expected to use specialized operations and token economic systems unrelated to game content to reduce game customer acquisition costs and achieve a relative separation between game content creation and user acquisition. This model of empowering games through platforms is one of the most promising directions in the blockchain gaming field. Some game projects have recently begun transitioning from single games to providing game platform capabilities, indicating a trend and direction. Overall, gaming platforms and ecosystems can have a more enduring vitality, promoting the development of the entire blockchain gaming field towards greater professionalism and sustainability.

4.1.3. Track Pattern

With the booming development of the gaming blockchain industry, Ronin, as the gaming sidechain where the first blockchain game representative project Axie is located, has attracted considerable attention for its development prospects. Currently, Ronin mainly faces competition from multi-functional public chains and other chains, and the current competitive landscape mainly includes the following aspects:

1) Traditional and powerful multi-functional public chains

A. Binance Smart Chain (BSC): As of November 2023, BSC has launched 963 blockchain games, occupying an absolute advantage in terms of the number of games. This is due to the following advantages of BSC:

l Performance: BSC can achieve thousands of TPS in a single day, with extremely low transaction costs, meeting the requirements of high concurrency and low cost for GameFi.

l Ecosystem resources: BSC itself holds a huge tokenomic foundation, and institutions such as Binance Labs have long been investing in GameFi project incubation, greatly expanding the ecosystem scale.

l User base: With Binance as the entry point, BSC provides a broad Web3 user base, giving GameFi projects an early traffic advantage.

l Clear roadmap: BSC clearly implements a "low gas, high speed" development strategy, providing long-term reliable support for GameFi projects.

Although BSC lacks a representative flagship project like Axie, its diverse ecosystem advantages have kept it consistently ahead in the number of GameFi projects. With continued technological and ecosystem development, BSC will continue to consolidate its position in the GameFi field. Overall, BSC's GameFi track has broad prospects.

B. Polygon: As an important Layer 2 solution for Ethereum, Polygon has also performed impressively in the GameFi field. As of November 2023, Polygon has launched 473 games, showing a 74.28% increase compared to the same period last year, indicating its advantage in attracting GameFi projects.

l Solid ecosystem support: With monthly active users accounting for over 65% of total active users, Polygon's ecosystem is active. Additionally, outstanding projects like The Sandbox have instilled confidence in the ecosystem.

l Clear technological advantages: With TPS in the thousands and low gas costs, Polygon addresses Ethereum's performance issues. Its deep integration with Ethereum greatly expands its ecosystem influence.

l Significant ecosystem collaboration: Polygon Studios has been incubating high-quality projects and actively exploring various cooperation models to stimulate ecosystem vitality.

l Strong user base: Thanks to the Ethereum community, each project on Polygon can gain rich early user support.

Overall, Polygon is in a leading position in the GameFi field and may continue to consolidate this position based on its technological and ecosystem development advantages, becoming one of the mainstream GameFi public chains.

C. Ethereum: As of November 2023, Ethereum has the second-highest number of GameFi projects, with 770 games launched. Ethereum has the richest ecosystem resources, with a large number of developers and users. However, as the first smart contract platform, Ethereum faces performance bottlenecks, with TPS at only 15 and high transaction costs, limiting the development of high-frequency applications like GameFi.

2) Professional Public Chains Focused on Gaming Applications

A. WAX: Positioned as an NFT and GameFi public chain, WAX has the second-largest user base after BSC and has an early and mature ecosystem. With typical cases like Alien Worlds, WAX has a high daily trading volume. As of November 2023, WAX has launched 166 games.

l Solid technical support: WAX's TPS can reach 2700+, with transaction speeds surpassing VISA, and staking is gas-free, meeting the low-cost and high-concurrency requirements of GameFi.

l Effective business model: Leveraging resources like OPSkins, WAX has deeply cultivated NFT and gaming business models, forming a complete ecosystem industry chain.

l Significant impact of the Alien Worlds project: Represented by Alien Worlds, WAX leads in daily average trading volume, bringing sustained vitality to the ecosystem.

l Continuously expanding user base: With an active user base second only to BSC, WAX's user and developer community continues to grow, enhancing its ecosystem influence.

l Continuous improvement in cross-chain capabilities: Strengthening interoperability with mainstream chains, covering various business models such as gaming and NFTs.

As a long-standing public chain focused on GameFi, WAX has become one of the leaders in the field due to its excellent technology and ecosystem.

B. Hive: Focused on social and gaming, the ecosystem is primarily centered around the game Splinterlands. Despite having only 16 games to date, Hive has maintained a high daily active user base, indicating a decent ecosystem quality.

l Significant role of Splinterlands: As the representative game of Hive, Splinterlands has performed well, serving as the "first moat" for the GameFi ecosystem on the chain.

l Clear technological advantages: Hive meets GameFi requirements with its "fast, stable, and low-cost" characteristics, earning praise for user experience.

l Strong active user base: Despite the limited number of projects, Hive maintains a daily active user base of over 35,000, with Splinterlands helping maintain high traffic.

l Need to accelerate the addition of other games: In addition to Splinterlands, Hive needs to attract and cultivate more GameFi projects in the future to expand the ecosystem depth.

l Strengthening connectivity with the mainnet: Enhancing connections with mainstream public chains will help Hive's GameFi track achieve scale development.

Overall, Hive has maintained a certain level of influence for a long time due to its technological advantages and leading games. However, further efforts are needed to expand the ecosystem and discover new projects, which will determine its future prospects in GameFi.

3) Other Gaming-Specific Sidechains

A. ImmutableX: Recently, the number of games in the ImmutableX ecosystem has surged to over 150, with rapid increases in daily trading volume and user numbers. Star games like Gods Unchained, Guild of Guardians, and Illuvium have driven the platform's growth and attracted more high-quality games to join.

l Clear technological advantages: Technologies like zkRollup address gas issues, providing a high-performance, low-cost operating environment for games.

l Accumulated user base: Immutable X has surpassed 100,000 daily active users, gaining a significant user base.

l Collaboration with mainstream platforms: Collaboration with platforms like GameStop brings in more users.

l Established gateway status: In the NFT gaming field, Immutable X has become an important entry point and is expected to further enhance its influence.

l Deepening the ecosystem is the direction: Further addition of flagship games, enriching the ecosystem content, and enhancing user activity are crucial.

l Continuous technological innovation: Continuing to optimize performance, reduce barriers, and enhance user experience is critical.

Overall, Immutable X is rapidly rising to become an important infrastructure in the NFT gaming field, with its main advantages lying in technological innovation and ecosystem expansion capabilities. Continuously deepening the ecosystem and maintaining technological advantages are key to winning the competition in the gaming public chain.

4) Competitive Landscape Analysis

In recent years, GameFi has developed rapidly, with Ethereum once dominating. However, with on-chain congestion and gas fee issues exposed, GameFi projects have shifted to new-generation public chains.

A. In traditional public chains, BSC has the most GameFi projects due to its strong technical performance and user base. Polygon, on the other hand, has remained active in GameFi protocols during this bear market, and both are increasingly becoming the mainstream choices for the new GameFi track.

B. In gaming public chains, Hive has maintained a lead in user base for a long time, primarily due to Splinterlands. Harmony and Ronin have shown impressive transaction volumes, laying the foundation for the future development of GameFi sub-tracks.

C. As the blockchain for the Axie game, Ronin initially performed well in 2021 due to Axie's strong influence. However, with the decline in Axie's popularity and the exposure of single-dependency flaws, Ronin's future development faces challenges.

D. At the same time, the increasingly mature cross-chain technology will also impact the future landscape of the GameFi track. More and more projects will deploy on multiple public chains, seeking dual advantages in technology and market.

Overall, in terms of competition, Ronin mainly faces challenges from Layer 2 competitors like Immutable X, which are attempting to enhance game performance by improving the blockchain. Other public chains like WAX and BSC are attracting more games through resources. With the iteration of technology and products, the future of GameFi will form a new landscape dominated by traditional public chains and refined gaming public chains. Ronin needs to continue to improve itself and engage in broader cooperation with other chains to consolidate its core position in the gaming public chain field.

4.2. Competitive Analysis

4.2.1. Core Competitive Factors

Evaluating the performance of public chains in the GameFi field is mainly analyzed from several dimensions, including performance, ecosystem, user experience, and innovation capabilities.

A. Performance Completeness: TPS reflects network capacity, and gas fees reflect usage costs. This relates to game fluency and barriers to entry.

B. Ecosystem Unity: The richness and diversity of the ecosystem are important competitive points. Interoperability between projects is also crucial.

C. User Experience: Reducing user learning and usage barriers and providing a smooth experience are very important. Security also relates to asset safety.

D. Application Scale: Building flagship applications in the blockchain field can quickly accumulate users and resources, gaining a first-mover advantage.

E. Innovation Capability: Whether core technology and products can continue to lead reflects the platform's forward-looking vision and competitiveness.

4.2.2. Competitive Advantages

Based on the analysis above and considering Ronin's network characteristics, the competitive advantage analysis of Ronin can be conducted from the above core competitive factors.

1) Advantages

A. Customized design focusing on gaming needs enhances its performance

Ronin is tailored specifically for Axie Infinity, and through technologies like DPOS consensus, Ronin's TPS can reach tens of thousands per second, meeting Axie's high-frequency transaction needs. Compared to Immutable X, Ronin can provide more customized support, as games on Immutable X are more dispersed and cannot provide special customization for a specific game.

B. Leading initial traffic advantage with the flagship game Axie

Axie's heavyweight status has helped Ronin attract hundreds of thousands of users, creating an important ecological foundation with a large number of players favoring Axie. Ronin exclusively holds the powerful ecosystem and user base of Axie Infinity, which has created a market value of over 10 billion, giving Ronin an initial development advantage.

C. Design to reduce gas fees lowers usage costs

Ronin has almost eliminated all gas fees, significantly reducing the usage costs for Axie players. This is also a design consideration based on gaming applications.

2) Areas for Improvement in the Future

A. Ensure the security of user assets to avoid single-point risks

Ronin is overly dependent on Axie, posing a single-point risk. It needs to further improve security mechanisms to prevent events like the RoninBridge attack from happening again.

B. Attract developers to continuously build a rich ecosystem

Further expanding the ecosystem, attracting more games to join, reducing dependence, and making the ecosystem more diverse.

C. Benchmark against mainstream public chains to narrow the gap

Continuously optimizing performance and maintaining good interoperability with mainnets like Ethereum to narrow the gap with mainstream public chains.

Overall, Ronin has taken the lead in GameFi due to its focus on gaming advantages, but it also needs to rely on continuous innovation to maintain competitiveness and secure its position in the long term.

4.3. Token Economic Model Analysis

4.3.1. Token Total Supply and Distribution

1) Token Information

Token symbol: $RON

Contract address: 0xe514d9deb7966c8be0ca922de8a064264ea6bcd4

Current price: $0.8

Current market cap: $216,247,964

24-hour trading volume: $2,943,950

Fully diluted market cap: $800,039,254

Circulating supply: 270,309,192

Maximum supply: 1,000,000,000

Total supply: 1,000,000,000

2) Token Secondary Market Performance

Ron was listed on the secondary market in January 2022, with prices stabilizing around 3U. With the theft incident and the overall bear market in crypto, the price of Ron dropped to around 0.2U, and has since rebounded by 4 times from the low point. (At the beginning of the year, with the overall market rebound and the launch of staking activities, the price reached around 1.5U, rebounding nearly 8 times from the low point.)

3) Token Distribution

The tokens will be gradually unlocked over a period of 9 years.

• Sky Mavis: 30%;
• Community: 30%;
• Staking rewards: 25%;
• Ecosystem fund: 15%.

4.3.2. Token Value Capture

The Ronin token is used for network governance, paying network service fees, and mainly has the following value:

1) Paying transaction fees

l As Ronin's transaction volume continues to increase, users need to continuously pay gas fees, adjusting to a reasonable level.

l Shortening confirmation times and optimizing performance to attract more transaction demand to continuously release value.

2) Validator staking consensus

l Increasing the staking threshold to attract more nodes to participate in achieving decentralization.

l Establishing reward mechanisms to lock circulating supply, supporting the price of Ronin.

l Policy adjustments to attract community participation in jointly maintaining network security.

3) Network governance participation

l Granting more voting rights to attract token holders to participate in decision-making.

l Combining voting reward design to promote consensus coordination in governance.

l Enhancing the central position of the token value through community development.

4.3.3. Core Demand for Tokens

1) Validators

l Becoming a validator node requires holding a certain amount of Ronin for staking to participate in consensus and network maintenance.

l Continuous increase in the staking threshold will attract more institutional participation.

l The potential rewards from staking will also drive continuous growth in validators.

2) Users

l As a gaming chain, users need to hold a certain amount of Ronin to pay gas fees while using the network.

l With the increasing number of Ronin ecosystem applications, the expenditure on user experience costs will gradually expand.

l Future payment scenarios expanding into other areas will attract a wider user base.

3) Developers

l Introducing more DApps will require developers to hold tokens to cover development costs.

l Ecosystem development requires long-term investment, and developers need to hold tokens to participate in new projects.

l With policy support, more third parties will be attracted to participate in application development.

4.4. SWOT Analysis

4.4.1. Project Strengths

For project strengths, please refer to section 1.1 Core Investment Logic.

• Strong support from its own well-known game Axie Infinity, with a large user base
• Large ecosystem, technological advantages, and rich management experience

4.4.2. Project Weaknesses

Ronin's high dependence on Axie Infinity as an exclusive sidechain and its underdeveloped ecosystem pose potential project risks. Ronin is highly dependent on Axie Infinity, which has brought significant trading volume and influence to Ronin. However, as the popularity of Axie declines, Ronin's trading volume has also significantly decreased. This indicates a risk of high dependence on a single application within the Ronin ecosystem. If the popularity of Axie Infinity continues to decline, it will severely impact the continued development of Ronin. Additionally, the gaming ecosystem on Ronin needs further expansion. According to official data, there are only 8 gaming applications on Ronin, making the ecosystem very limited. In comparison, other competitors have much more diverse gaming ecosystems. For example, WAX has over 160 games, and Immutable X has over 150. The limited diversity of the Ronin ecosystem restricts its attractiveness and scalability. Without introducing more high-quality games, Ronin may struggle to compete with its rivals. Overall, the high dependence and underdeveloped ecosystem are risks that affect Ronin's ability to rapidly gain network effects and long-term development. Ronin needs to actively expand its ecosystem, attract more high-quality gaming applications, and reduce its dependence on Axie Infinity to achieve ecosystem diversity.

Security issues and the level of decentralization of Ronin: Ronin has experienced a serious security incident where approximately $600 million was stolen by hackers, negatively impacting its security image. In March 2022, Ronin's cross-chain bridge was maliciously attacked, resulting in the theft of approximately $600 million in assets. This security incident directly led to a more than 70% plunge in the price of Ron, exposing the weak points in Ronin's security and reducing user and investor trust in its security. Additionally, Ronin uses a delegated proof-of-stake (DPOS) mechanism, which means that the number of validating nodes on Ronin is very limited, resulting in limited decentralization and certain risks. If individual nodes encounter problems, it will threaten the overall security of the chain. In comparison, proof-of-work (POW) and proof-of-stake (POS) mechanisms can achieve a higher level of decentralization and reliability.

4.4.3. Project Opportunities

Establishing a dominant position in mainstream gaming platforms and ecosystem value growth: With the rapid development of the blockchain gaming market, Ronin has the opportunity to become the mainstream infrastructure of this emerging track and benefit significantly from it. With its ecosystem advantages, Ronin is expected to take a leading position in the blockchain gaming wave. The success of Axie Infinity will attract more users and developers to join the Ronin ecosystem, creating network effects. Ronin is also increasing its efforts in third-party collaborations, which will enrich its ecosystem content. As the ecosystem expands, the social and commercial value of Ronin will also be enhanced. It will provide a rich on-chain entertainment experience for more users, and through commercial means such as transaction fees and advertising, Ronin's economic model will become more diverse.

The tremendous potential of the gaming market brought about by the flourishing development of Web3.0: With the increasing popularity of the Web3.0 concept globally, the gaming market on the blockchain, as one of the leading applications, will experience rapid growth. Currently, several well-known IPs are entering the blockchain gaming space, which is expected to generate significant new demand. As a public chain focused on gaming, Ronin is at a historic opportunity point. If it continues to leverage its technological advantages and ecosystem support to attract more top games, it stands to benefit greatly. Additionally, with the rise of the Metaverse concept driving the virtual economy into a mature stage, if Ronin positions itself well in this area, it will undoubtedly introduce scalable commercial value. Furthermore, the increasingly mature cross-chain technology will open up more collaboration opportunities for Ronin. By seizing this key opportunity for technological upgrades, its influence will be exponentially amplified.

4.4.4. Project Threats

Intense competition among public chains leading to a test of technological status: With the industry flourishing, various public chains are continuously upgrading and evolving their technologies to compete for support from gaming users, putting Ronin in a passive position in the technological competition. Additionally, young public chains are emerging with the advantage of low costs to attract more small games, posing a threat to Ronin's leadership position in the future. Furthermore, many established public chains such as BSC and Hive are consolidating their existing advantages. They can use their first-mover advantage to attract more resources, which poses a significant risk to Ronin. Therefore, the technological architecture of Ronin urgently needs significant upgrades and cannot afford to stand still. This also requires continuous innovation support from a strong development team. Moreover, as the underlying chain for the Axie online product, Ronin's overreliance on the latter is not a long-term solution. In the future, it must focus on enhancing its own brand value and influence. Overall, public chain competition will be a significant and persistent challenge for Ronin in the future, and the key lies in seizing high ground through technological strength to consolidate its market position.

5. References

• Ronin Project Official Website
• Ronin Official Twitter
• Ronin Official Discord
• Ronin DOCS
• Ronin on CoinMarketCap
• Ronin Project Brief
• Pixels Two-Year Anniversary: Can it become the second Axie Infinity on Ronin?
• Several games are entering, will Ronin return to the center of the "chain game infrastructure" narrative?

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