Key takeaways:
- Sky Mavis, the team behind Axie Infinity, have launched RON, a governance token of Ethereum’s sidechain the Ronin Network
- Ronin chain is optimized for high transactional throughput and to facilitate high network workload of NFTs
- Users who own Axie Infinity NFTs will be eligible to make up to 500 free RON transactions per day
Sky Mavis, the creators and developers of play-to-earn (P2E) sensation Axie Infinity (AXS), have launched a governance token for its Ethereum sidechain the Ronin Network. The RON token will be used to pay for gas fees on Ronin, while providing several decentralized finance (DeFi) extras, including staking and community governance.
Axie Infinity NFT owners get up to 500 free transactions per day
According to Axie Infinity’s announcement post, the company is looking to reward its non-fungible token (NFT) holders – users who hold Axies and land plots in their digital wallets will be able to make up to 500 transactions per day on the Ronin Network free of charge. The rate of free transactions depends on users’ holdings. “Mystic” level Axie and Land owners will benefit the most from the new arrangement, while the owners of “Normal” level NFTs will benefit the least. For the full breakdown of the new system, click here.
Ronin was launched almost a year ago, in February 2021, and has managed to achieve several notable milestones in its short existence. According to blockchain analytics platform Nansen, the Ronin chain processed 560% more transactions than Ethereum in November 2021, while sporting more than 4 times lower block times than its parent network. Perhaps even more impressive is the fact that the child chain of Ethereum processed 15% of all NFT volume in 2021.
Roughly 148 million RON are currently in circulation out of the maximum supply of 1 billion tokens. At current market rates, RON’s market capitalization stands at $513 million.
The RON token has received a relatively lackluster reception from the market participants so far. The token is down nearly 20% since its initial trading price on Thursday, and is trading at $3.46 at the time of this writing.
