What is the issuance and circulation of Ronin coins?

Ronin's native token, RON, has a limited supply, with 75% of its total supply in circulation, serving as the primary gas fee for transactions on the Ronin sidechain and the in-game currency within Axie Infinity.

Nov 17, 2024 at 02:40 pm

What is the Issuance and Circulation of Ronin Coins?

Ronin, an Ethereum-based sidechain developed by Sky Mavis, the creator of the popular play-to-earn game Axie Infinity, has its native token, the Ronin coin (RON). Here's an in-depth look at the issuance and circulation of RON:

Issuance: Tokenomics and Supply Distribution

• Limited Supply: RON has a maximum supply of 1 billion tokens, making it a deflationary asset. The limited supply ensures that the value of each token is supported by its scarcity.

• Token Allocation: The initial token distribution of RON was as follows:

  • 20% for Sky Mavis, the development team behind Axie Infinity.
  • 30% for the Axie Infinity community, allocated through community rewards and ecosystem development initiatives.
  • 50% for strategic partners and investors, including Binance and Animoca Brands, to foster long-term ecosystem growth.

Circulation: Market Presence and Trading Volume

• Circulating Supply: The current circulating supply of RON is approximately 750 million tokens, representing 75% of the total supply. The remaining 25% is held by Sky Mavis and strategic partners for future ecosystem development and liquidity management.
• Trading Volume: RON is traded on several reputable cryptocurrency exchanges, including Binance, Coinbase, and Huobi. It has a substantial 24-hour trading volume, indicating strong liquidity and active market participation.

Use Cases: Utility and Applications

• Gas Fees: RON serves as the primary gas fee for transactions on the Ronin sidechain. Users need RON to execute smart contracts, transfer tokens, and interact with decentralized applications built on the Ronin network.
• In-Game Currency: RON is also the in-game currency within Axie Infinity. Players use RON to breed, train, and battle their Axies, as well as purchase in-game items and upgrades.

Factors Influencing Circulation and Value

• Demand from the Axie Infinity Community: The popularity and growth of Axie Infinity directly influences the demand for RON. As the player base expands and the in-game economy thrives, the demand for RON for gas fees and in-game transactions increases.
• Ecosystem Development and Partnerships: Ronin is actively collaborating with third-party developers and projects to build a robust ecosystem around its sidechain. New decentralized applications and integrations further drive the use and adoption of RON.
• Speculation and Market Sentiment: As with any cryptocurrency, the price and circulation of RON can be affected by market sentiment, macroeconomic conditions, and speculative trading activities.