Ronin Staking

RON is the native token of the Ronin network, an EVM-compatible blockchain purpose-built for gaming and digital entertainment.

Token Utilities:

• Gas fees: RON is used to pay for all transaction fees on the Ronin network. A portion of gas fees is burned, creating deflationary pressure.
• Staking: Token holders can stake RON with validators to secure the network and earn staking rewards.
• Governance: RON holders participate in community governance decisions affecting the protocol.
• DeFi: RON is used across the Ronin DeFi ecosystem, including Katana DEX and lending protocols.

RON has a hard cap of 1,000,000,000 tokens (1 billion). Unlike many PoS networks, RON is not inflationary beyond its fixed emission schedule.

Allocation:

• 30% Community incentives (ecosystem growth, user rewards)
• 30% Sky Mavis (team, vested over 9 years)
• 25% Staking rewards (180M RON distributed over 8 years, 2023-2031)
• 15% Ecosystem fund (grants, partnerships, development)

Staking emission schedule: Front-loaded to bootstrap network security. Year 1 distributes 30M RON, decreasing annually to 6M RON in Year 8. A separate 8M RON allocation funds bridge validator rewards (1M/year).

A portion of transaction fees is burned, providing deflationary pressure against the fixed supply.

Ronin uses a hybrid of Delegated Proof-of-Stake (DPoS) and Proof of Authority (PoA), with a fixed validator set of 22 nodes.

Validator structure:

• 12 Governing Validators: Reputable institutions (including Google Cloud, Nansen, Animoca Brands) always selected to produce blocks, providing baseline network security.
• 10 Rotating Validators: Selected each epoch (~10 minutes) from the candidate pool using a Verifiable Random Function (VRF). Selection probability is proportional to total staked RON.

Since the Goda upgrade (July 2024), 85% of rewards go to all validators for finality voting, while 15% go to validators selected for block production. RON holders delegate stake to validators and share in rewards proportionally, minus the validator's commission (5-20%).

To earn staking rewards on your RON, you can delegate to validators through the Ronin Staking Portal. For the best security, we recommend using the official Ronin Wallet (browser extension or mobile app).

Step 1: Install the Ronin Wallet and fund it with RON tokens.

Step 2: Navigate to the Ronin Staking Portal and connect your wallet.

Step 3: Browse the validator list. Check our FAQ on how to choose validators if you are unsure who to delegate to.

Step 4: Select a validator, enter the amount of RON to stake, and click "Delegate."

Step 5: Confirm the transaction in your Ronin Wallet.

Important notes:

• Rewards are calculated based on your lowest balance per day. On your first day of delegation, you earn zero rewards.
• A 3-day cooldown applies after staking before you can withdraw from that validator.
• Rewards accumulate automatically and can be claimed at any time via the "My Staking" dashboard.

Staking rewards on RON come from two sources:

Block rewards: The primary source of rewards comes from a fixed allocation of 180,000,000 RON distributed over 8 years (2023-2031). The schedule is front-loaded, with 30M RON in Year 1, decreasing annually to 6M RON in Year 8. This is not inflationary issuance but rather a pre-allocated portion of the fixed 1 billion RON supply.

Transaction fees: Validators earn fees from all transactions in their produced blocks. As gaming activity on Ronin grows, transaction fees become a larger share of total rewards.

Reward distribution: 85% of total rewards go to all validators for finality voting, while 15% go to block-producing validators. Validators retain their commission (5-20%) and distribute the remainder proportionally to delegators based on stake.

Model your expected returns on the Staking Rewards Calculator.

It is essential for users to stake their tokens with dependable and highly performant validators, which is why we have rolled out our Staking Rewards Verified Staking Provider (VSP) Program. Through this program, we thoroughly scrutinize potential validators, evaluating factors such as security measures, on-chain reliability, provider setup, and value-added services.

Our VSP documentation contains further details about the program. Staking Providers that are part of the VSP will have a blue checkmark displayed next to their names here.

Key criteria when selecting Ronin validators:

Validator type: Governing Validators (12 slots) are always selected and produce blocks every epoch, providing more consistent rewards. Rotating Validators (10 slots) are selected probabilistically based on stake.

Commission rate: Ranges from 5% to 20%. Lower commission means more rewards pass through to delegators, but consider sustainability.

Uptime and performance: Select validators with high uptime and minimal missed blocks. Downtime leads to reward loss and potential slashing. View performance on the Ronin Staking Portal.

Total stake: For rotating validators, higher total stake increases selection probability. However, very large validators mean your proportional share of rewards is smaller.

Ecosystem contribution: With the upcoming Proof of Distribution model, validators actively contributing to the Ronin ecosystem may receive additional rewards.

We strive to make staking as safe and transparent as possible, however, it is important to consider the following factors:

Slashing risk: Ronin implements a tiered slashing system. Validators can be penalized for unavailability (missing blocks), fast finality violations (conflicting votes), or double-signing. While delegator principal is generally not directly slashed, delegators lose potential rewards during any period their validator is jailed or punished. Choosing validators with strong uptime records minimizes this risk.

Cooldown risk: A 3-day cooldown must pass after staking before you can withdraw from a validator. In volatile market conditions, you cannot immediately exit your position. Consider keeping a portion of funds liquid if you do not intend to hold RON long-term.

Centralization risk: 12 of 22 validator slots are Governing Validators (trusted institutions), making Ronin more centralized than many DPoS networks. This design prioritizes reliability for gaming use cases but concentrates trust in a smaller set of entities.

Reward schedule risk: Staking rewards follow a fixed 8-year declining schedule. As emission decreases annually, yields will decrease unless offset by growing transaction fee revenue from gaming activity.

Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs. Notably, the Ronin bridge suffered a major exploit in March 2022, though the network has since been significantly rebuilt and decentralized. This risk applies not only to staking but to the RON investment in general.

Please note that this is not an exhaustive list of all the risks related to staking.

After delegating your RON tokens, there are a few things to keep in mind:

• Reward claiming: Rewards accumulate automatically and can be claimed at any time via the "My Staking" dashboard on the Ronin Staking Portal. Rewards are not auto-compounded, so claiming and re-staking periodically can maximize returns.
• Validator monitoring: Periodically check your validator's performance and commission rate. If your validator experiences downtime or raises commission, consider re-delegating to a better-performing validator.
• Credit score system: Ronin validators operate on a credit score system. Validators earn 50 credits per day for perfect performance and lose 1 credit per missed block (max 600 credits). Low-credit validators risk being jailed, which would pause your reward accrual.

Use the Ronin Staking Calculator to determine the optimal re-stake frequency for your amount of RON.